Bitcoin Crypto

What is bitcoin and how does it work?

Bitcoin is a form of electronic money. This means that he has no physical form. Instead, e-money units are exchanged over a computer network that has some unique properties: There is no central point of control (there are no "banks"). There is no central transaction storage point (a central database that contains a record of all transactions performed). Instead, it operates on a global network with thousands upon thousands of nodes—a machine within a network like a computer or other device—that process and store transactions together.

Where is it from ?

Bitcoin was first published as an idea on an electronic mailing list for computer scientists studying secure communications (or cryptographers) in 2008. The author goes by the mysterious pseudonym of Satoshi Nakamoto, but no individual (or group of people) has so far been conclusively identified as Satoshi.

What is Bitcoin used for?

As a means of payment :

Bitcoins are used as a means of direct payment online. However, they can be converted into dollars or euros on markets provided for this purpose. Physical coins have even been launched, which can be purchased online using either virtual Bitcoins or traditional payment methods. They remain, however, largely in the minority. A number of companies already accept bitcoin as a method of payment, although they are still very much in the minority. These are for example: WordPress, Subway, Microsoft, Virgin Galactic, Wikipedia, Of course, these big names have the infrastructure to deal with cryptocurrencies. But given the uncertainty about its regulation and market volatility, it's no surprise that bitcoin integration hasn't become more mainstream.

As a technological base;

Many companies are ignoring the currency itself and focusing on the decentralized database at the heart of bitcoin. The technology behind the blockchain has already enabled the emergence of a series of new business models in the areas of international payments, web development and data protection. In addition, several funds seek to invest in projects that exploit the potential of the blockchain, awakening the interest of international financial centers for crypto-currencies.

How are bitcoins created?

Purchasing on platforms provided for this purpose is not the only way to obtain Bitcoins, although it is simple and fast. Indeed, Internet users can also participate in the process of creating new Bitcoins and thus obtain them. This is called “Bitcoin mining”. A new user who wants to be satisfied with a purchase of Bitcoins through the intended platforms does not need to know how Bitcoins are created. However, a curious user may be interested in this process. To ensure the credibility of the system, it is necessary that the authenticity of the payer and the availability of funds are verified when paying in Bitcoins. This is why a monitoring process is put in place: concretely, Internet users who are members of the network – the “Bitcoin miners” – invest in computer equipment that they make available to the system for its proper functioning and security. The computers of these Internet users are then put in competition to develop complex mathematical functions which make it possible to check the validity of the transaction. Whoever wins the validation is rewarded by receiving newly created Bitcoins.

?How to get Bitcoins?

To obtain Bitcoins in a way that is both simple and fast, you have to use online platforms where you can buy them for euros or another currency (coinbase, binance, etc.). In most of these platforms, the purchase of Bitcoins is done in three steps. First of all, you need to open an account on an active crypto sales platform by creating a username and password. It then becomes possible to fund this account in euros, or another currency, by bank transfer. The user must then consult the order book of the site. This order book lists the prices at which Bitcoin sellers are willing to exchange the virtual currency for euros, or another currency. Finally, you have to place an order by offering a limit purchase price, which is the maximum price at which you are willing to buy Bitcoins. The order is only executed when a seller of Bitcoins offers a price lower than or equal to the limit purchase price. Once the order is executed, the user's account is fed with Bitcoins and his assets in euros, or in other currencies, are transferred to the Bitcoin seller. It is also possible to sell your Bitcoins for euros, or other currencies, by placing a sell order. On most platforms, it is then possible to transfer euros to a bank account, by bank transfer. This therefore means that a purchase of Bitcoins is not irreversible. However, it is important to be careful of variations in the price of Bitcoin, which may or may not be favorable to the user depending on the case.

In which countries are cryptocurrencies used the most?

The publication of a new index of adoption of cryptocurrencies in the world indicates that the latter are more used in developing countries. Although particularly volatile, cryptocurrencies seem to offer the inhabitants of these countries new possibilities for combating certain monetary imbalances, such as inflation, and new tools for international fund transfers.

The advantages of bitcoin

Here are the most commonly talked about benefits of Bitcoin:

• Bitcoin is the most open financial system to date. You can make payments with Bitcoins 24/7 anywhere in the world, even if there is no banking system.
• International Bitcoin transfers can be faster and cheaper than with traditional banking and banking services.
• Bitcoin is the only asset ever created that cannot be taken from you by force (if the proper precautions are taken). Also, BTC transactions are uncensorable and no one can stop you from doing them.
• Bitcoin is pseudonymous, and anyone can open their wallet through the internet without verification or credit history. This is especially beneficial in under-resourced regions and third world countries where most people struggle to access money.
• You can use Bitcoins the same way you use traditional money - from a desktop computer, mobile phone or debit card.
• Unlike fiat currencies, Bitcoins are deflationary, which means their value is made to be deflationary.
• Bitcoin is the most portable asset ever created and can be transferred via satellite or even radio waves.
• Bitcoin also has great features for businesses, such as multi-signature authorization and accounting transparency. Multi-signature means multiple people need to sign a payment, which provides more security. And the very nature of a blockchain – where all transactions are public – enhances company transparency.
• Compared to other cryptos, Bitcoin has the highest brand recognition, liquidity, the most developed ecosystem and is the most accepted among merchants.
• The Lightning Network enables Bitcoin to be used for small, inexpensive everyday transactions such as buying tea, buying groceries, or simply tipping someone online.
• Bitcoin introduces a concept of programmable money, which enables other financial innovations such as "smart contracts."
• Bitcoin upends the monopoly of money by offering an alternative to people who distrust their government, certain institutions, certain politicians, or who simply believe in decentralization.

The disadvantages of bitcoin

Bitcoin Cons' the most commonly mentioned Bitcoin disadvantages include:

• Little or no regulatory oversight when things go wrong.
• Despite attempts to enable offline bitcoin payments, usage of the currency is still largely dependent on internet availability.
• As Bitcoin is under development, transaction speed and fees tend to vary depending on mining efficiency and network congestion.
• Converting Bitcoins to Fiat incurs often expensive fees.
• Not all stores and service providers accept Bitcoins.
• Bitcoin transactions are immutable, which means that once the money leaves your wallet, there is no way to get it back. Although many reputation management tools are being developed, “buyer protection” is not yet used with Bitcoin. Conversely, it can be beneficial for traders because accepting BTC eliminates the risk of chargebacks.
• Most people are not prepared to take full responsibility for their assets and cannot manage their private keys securely. Many Bitcoin private keys have been lost, contributing to the deflation and appreciation of Bitcoin.
• Learning all the ins and outs of the Bitcoin ecosystem presents a steep learning curve. The user interface of most Bitcoin applications is still not foolproof, and the network is not ready to serve everyone.
• Securing Bitcoin requires basic cybersecurity knowledge. While the network is virtually inaccessible, organizations and individual users are.
• Bitcoin's core ideology goes against the most powerful institutions, governments, politics, banks, regulators, and censorship, and will likely encounter plenty of resistance before these actors can tolerate it or resist it. 'approve.

These are the most common pros and cons of bitcoin. As you can see, the revolutionary technology behind Bitcoin is not without compromise. For every advantage, there is also a considerable disadvantage. Despite this, Bitcoin is an evolving system that does not stand still. Its community of open-source developers actively seeks better solutions.