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Bitcoin - BTC
26-12-2017 | No Views : 429
Bitcoin is an electronic currency encoded for decentralization, meaning that it is not launched by a specific financial authority, and is not owned by a central bank that issues it. The currency of the coin is mined through mining platforms on the Internet.
Decentralized electronic currency composition is the most differences between them and other paper currencies, as the paper currency issued through the central bank of the state that issued them, and there are controls on printing paper currency and must have a cash cover of gold.
What is electronic currency "Bitcoin"?The configuration is a coded electronic currency that differs from traditional currencies with no regulatory body. Transactions are conducted directly between users without an intermediary. The inventor of the currency is still unknown. It is known as Satchoshi Naka Muto. It was issued in 2009 as an open source program
A currency is an electronic currency is not a physical presence, which is traded only through the Internet, since it is fully electronic currency, there are no banknotes or metal, and can be compared with other currency currencies, especially the US dollar.
Although there is no physical form of a composition coin, it can be used for purchase and financial transactions over the Internet. It can also be converted into traditional paper currencies and is often priced in US dollars.
The establishment of electronic currency "Bitcoin"The idea was first introduced in a 2008 research paper by an anonymous person called Naka Muto. It was first put forward in 2009 for the purpose of changing the global economy in the way the Web changed its publishing methods, the currency's authors noted.
The currency was also described as an electronic monetary system based on the principle of Peer to Peer in monetary transactions, meaning that the exchange of currency between users without a broker.
The entity issuing the electronic currency "Bitcoin" is the homeElectronic currency is a decentralized currency, as mentioned above, and there is no authority or regulatory authority to issue it, and users produce it during a process called mining.
The creation of a currency in composition requires an Internet connection and a computer suitable for the mining process to produce the currency, in a process called mining or exploration created by programs that use complex processes that enable anyone with mining equipment to produce electronic currency in formation, but the mining process is not as easy as It was in the early years of mining, because of the large number of minerals around the world that made it difficult to obtain this currency.
The transaction can be documented by means of an electronic signature that can not be altered or falsified, and information is stored on the Internet without any registered personal data. The currency can also be exchanged between users and monitored over the Internet.
The method of mining the currency "Bitcoin"
The process of Bitcoin mining is not easy. It is a complex process. You need computers with very high specifications for complex calculations that represent equations that need years to solve as some people think. They also require computers to remain operating for a long period of time.
It should be noted that the similarity of the process of extracting a coin in formation with the process of extracting gold is the reason for the designation of the extraction of this currency mining.
Mining can be explained as a solution to complex mathematical equations that may take years to solve as mentioned above, and therefore require computers with superconducting specifications.
Steps of Bitcoin Mining
- Get a mining machine.
- Get a portfolio by creating: There are a lot of sites that allow you to build wallets for the developers, and the most important of these sites is the site https://www.blockchain.com/ This site is characterized by a high rate of security, which protects your protection from penetration.
- Get mining program: minergate is one of the famous mining programs that you can start from.
- Start the mining process
The advantages of Bitcoin
- Low Cost: Transactions are made either with little or no fees for transfers from one portfolio to another, in online transactions or in transactions to other currencies.
- Free payment with fast transaction processing: A network configuration allows users to fully control their money, and enables you to receive and send money from and to anywhere in the world in an instant and at any time, unlike banks that stop dealing with vacations.
- The absence of a central authority controls the structure.
- Personal data security: No personal data is made in transactions, which makes illegal traders, such as drug and weapon dealers, resorting to electronic currency in financial transactions.
- The volatility of the prices: The currency has been characterized by a sharp volatility in prices and especially since the beginning of 2017, as prices were close to $ 1000 at the beginning of the year, and took a sharp rise until it reached nearly $ 20,000 in December of the same year, despite the continuous rise That this is the largest price bubble witnessed by a producer in history, which makes trading without a study on this currency very dangerous.
- Severity of penetration: Despite the difficulty of penetration, however, in the event of a breach of the financial portfolio, the hacker is able to transfer your configuration to his portfolio immediately.
- Limited use by traders: Despite the widespread use and use of many products but not fully spread, many traders in many areas still do not use electronic currency in their physical dealings.
So we talked about the most important thing about the electronic currency in the configuration, which has seen a sharp rise in prices since the beginning of 2017 as shown in the picture attached above to the monthly chart, which indicates the price reached near $ 20000, before falling to the price of 13000 dollars.
Alternative currencies for the currency of the BitcoinDear Reader, Although Currency is the first electronic currency of its kind and months, it is not only because the success of the currency and the sharp rise in prices caused the emergence of other electronic currencies can be mining and dealing in financial transactions over the Internet.
Here we will address some of the other electronic currencies and the alternative currency of Bitcoin as follows
- Litecoin: Because of the power of composition, it may be gold in electronic currencies. Litcoin may be the silver according to the opinion of electronic currency workers, as recently it has seen the currency of the popular Leitquin, although it depends on the protocol configuration, but it was designed to be The prospecting process is relatively cheap, as it's faster and easier than configuring the transactions.
- Dujikuen: One of the most important characteristics of Dujikuen is its speed of production, which means the electronic dog's currency.
- Nemcoin: Nemquin's currency can be said to be relatively rare because the final number of the currency is one million. It is a versatile platform that can be used for decentralized and unregulated DNS, and Nemquin's currency helps create an unregulated Internet and denies government control.
- Novacoin: This currency is based on the peer-to-peer Internet protocol and open source, a virtual encrypted digital currency. Novakuin's currency differs from alternative digital currencies for developers. It deters attacks from exploration groups. It integrates protection programs within the currency nucleus.
- FXCoin: is another one of the encrypted electronic currencies, and is updated regularly to incorporate new enhancements and features including protection from abuse.
- Bercoin: The Berkwin currency is based on the peer-to-peer Internet protocol, as security and protection are improved to avoid abuse by the exploration group, and also increase the efficiency of exploration.
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