Virtual currencies emerge as an alternative to traditional fiat currencies and have their maximum exponent in Bitcoin. cryptocurrency has become one of the best long-term investments. Someone who had invested 1,000 dollars in 2010 today would be a millionaire. If you want to know more, here we tell you everything about Bitcoin.
How Bitcoin works?
For the end user, Bitcoin is another means of payment, such as the euro and an asset in which to invest, such as a share or oil. So is it safe to Buy Bitcoin in Adelaide and invest? Faced with this question, it is convenient to know that behind this entire market there is a technology that is what allows the system to be reliable. It is the block chain technology or chain of blocks that, among other things, prevents the double spending of the currency, that is, that someone can spend the same Bitcoin again. In short, the Bitcoin network is a public accounting system of which each user keeps a copy. Every time someone makes a transaction, it is stored on the users’ computers.
What is Bitcoin?
Bitcoin is an independent and intangible virtual currency. What differentiates this cryptocurrency from a common currency such as dollars is that it does not belong to any State. They are basically decentralized currencies since there is no central bank, government or financial institution or company that acts on it. In the case of the Dollar euro, the Federal Bank can intervene to affect the price through massive money issues or through interest rates. It is not possible with Bitcoin. In fact, the structure itself makes it impossible to manipulate its value. To make any change it is necessary that the entire user community approve it. The Bitcoin is the first electronic currency that managed to be implanted with some credit, but not the first to appear.
Who controls the Bitcoin network?
Although Bitcoin has developers who act as spearheads, nobody controls the virtual currency as nobody can control the development of email in the sense that it does not have a single owner. Programmers can improve Bitcoin software, but cannot impose a change in protocol. In fact, when discrepancies arise about Bitcoin they are resolved among the entire community. For now, there has only been one occasion in which consensus was not reached and it resulted in the creation of Bitcoin Cash, a new fork in technical language.
What is the block chain?
The block chain is the technology behind Bitcoin that acts both as a database and a backup of the system. In a traditional financial system, any transaction is entrusted to a third person, who is the one that validates the process. With block technology, it is the users themselves who do it. The block chain is like a large book of digital events shared and distributed among many people. It can only be updated from the consensus of the majority of users and the information cannot be deleted.