We hear a lot about Bitcoin, the virtual cryptographic currency whose value has peaked in recent months. Both simple in principle and very technical in its operation, it fuels the worst fears as the highest hopes.
Bitcoin involves technology, money, mathematics, economics and social dynamics. It is constantly evolving and has many facets. In this article, we explain where this virtual currency comes from and, in a very synthetic way, how it works.
First, a bit of history
The mother of all cryptocurrencies, Bitcoin has been thought of as a tool to fight the corruption of the financial system by replacing trusted third parties (banks) with cryptography and computer code.
A decentralized and non-vertical system whose credibility relies solely on technology. In 2011, Nakamoto forwarded the source code and domain names to the Bitcoin community and disappeared from the radars.
For the anecdote, know that thanks to Bitcoin, Satoshi Nakamoto has become several times billionaire, at least on paper. He also made many millionaires among some pioneering investors who bet on this cryptocurrency.
The twin Winklevoss brothers, who received $ 65 million in compensation for the initial idea that led to the creation of Facebook, invested very early in Bitcoin. Today, they hold one of the largest portfolios in the world, whose current value exceeds $ 1 billion.
Bitcoin, decentralized digital currency
Owners of Bitcoins enjoy an (increasingly) relative anonymity. Buyers and sellers are linked by encryption keys, but platforms that allow you to buy them require a number of documents to prove and verify your identity.
The Bitcoin protocol is based on a complex and exciting technology called Blockchain, or blockchain in French. But we will see how it works a little later.
You may be wondering now what can be done with the virtual money? For the moment, around 100,000 e-merchants accept Bitcoins payments but still very few major retailers. You can also sell your Bitcoins or save them.
Note that for each transaction, the Bitcoin protocol automatically charges fees (payor side). In addition to these fees, you will also find platforms if you buy or sell your virtual money via a marketplace such as Coinbase. And yes, decentralized does not mean completely free.
Related Sports Posts:
- Home Weather Station Guide: How is the Weather?
- Choose Lighting: How To Light Your Home
- 18 Tips That Will Make You Guru In House Clean
- Organized Kitchen: An Incredibly Easy Method
- Ergonomic Pillow Is Crucial To Your Body (New Guide)
- Now You Can Have The Spring Mattress Of Your Dreams
- The Latest Trend In Memory Foam Mattress – Secret Guide
- Why Are Essential Oils For Yoga The Most Trending Thing Now?
- DoTERRA Essential Oils Reviews: The Trending Stuff About doTERRA
- 15 Well Known Pocket Spring Mattress for Better Sleep (Buying Guide)
- Yoga Block or Yoga Brick: How to Choose Your?
- Electric Scooters Battery – 10 Things You Most Likely Didn’t Know
- Which Cheap Electric Hoverboard Should You Buy? [Buyer’s Guide]
- Electric Scooters For Adults: Which Best Adult Scooter To Buy?
- Electric Scooter Vs Hoverboard: How To Choose?
- 35 Best Electric Skateboards: For Cool People Who Are Also Totally Lazy
- Home Generators (Backup Generator): Why We Need Emergency Generators for Houses?
- Boxing Training Equipment Is Essential For Your Success (Quick Start)
- Find The Right Running Overpronation Shoes To Avoid Overpronation Pain
- Snowstorm & Winter Preparedness: How to Prepare For a Blizzard at Home?
Disclosure: We may earn affiliate commissions at no cost to you from the links on this page. This did not affect our assessment of products.