What is Bitcoin in simple words

What is Bitcoin

What is Bitcoin and Satoshi in simple words

Bitcoin is an online Internet wallet in which there are no usual monetary units like dollar or euro. This purse has a so-called own Internet currency – bitcoins, which consist of Satoshi, 1 bitcoin = 100,000,000 Satoshi, by analogy as 1 dollar = 100 cents.

Few people know about such a system or knows, but is afraid to use it, considering it to be rather doubtful. This online currency allows you to buy and sell on the Internet and is not a fraud.

In order to start using the wallet, it is enough to download a special application that after registration synchronizes the user’s computer with the computers of other users.

Within this system, the user, without specifying his name, can exchange e-currency with other Bitcoin users.

History of Bitcoin creation

This system was created by a person or a group of people named Satoshi Nakamoto in 2009. Probably the given name is an alias, but judging by its kind it can be determined that, most likely, the creator of the wallet is a Japanese.

In honor of the creator of the system, one billionth part of bitcoin, Satoshi, was named. He believes that in 2010 the first purchase with the help of bitcoins was made – the user bought a pizza exactly for 1000 bitcoins.

Advantages and disadvantages of Cryptocurrencies

Advantages

The first weighty plus is decentralization. This means that this currency is not backed up, and its rate does not depend on the gold reserves or the economy of the country in which this currency is entered.

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Such a currency is not issued by any organization or bank, it is reproduced by the system itself, which contains a complex mathematical algorithm.

This cryptocurrency is supported only by the number of users of such a system, that is, the more users, the more valuable this currency.


Personality of the person who translates bitcoins can not calculate or know his name. The only thing that users can know about each other is a set of numbers that does not give any information.

The third plus – bitcoins will never succumb to inflation. Can not be created more than 21 million bitcoins, this is a big plus for the creators of this purse, because if there is a need for such a currency, it will always be missed, and the rate will only grow.

 

Disadvantages

The absence of a single control center does not make it possible to cancel sending of bitcoins or to return them if the user sent them by mistake.

The second disadvantage is the complexity in use and therefore it reduces the availability for people who are far from advanced technologies.

The third and most important disadvantage is that such a cryptocurrency can easily be closed. There are many sites where drugs and weapons are sold for bitcoins, which draws the attention of the government of the states and gives impetus to the rapid closure of such currency for general access.

Ways to earn money on Bitcoin

1. The first way to earn money is to earn money by mining bitcoins. For mining use special farms, only they work, with the help of computers. Such a system is very complex and it can only be used by people who understand computer programs and technology.

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2. Sale of bitcoins. At the moment, the rate of bitcoins is about 3500 $ for one bitcoin.

3. Through the taps of free bitcoins. This option is the most budgetary, but it is extremely long and painful to earn on such cranes. On some cranes, you need to enter CAPTCHA for 1000 Satoshi or click on ad banners. Earnings on such cranes are extremely small around a dollar per day.

4. Cloud mining

5. The last of the simplest, although the most unreliable kinds of earning bitcoins is the game.



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One thought on “What is Bitcoin in simple words”

  1. I’d like to say about why bitcoin was invented. Because this question may remain unclear for some people, why to invent a currency if we already have money and can pay, for example, by credit cards. The main difference, to my mind, is that bitcoin is a payment method which allows for two people transact directly without a trusted third party (for example, bank or any other service which acts as guarantor)

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