What is bitcoin?
What is bitcoin (bitcoin, btc) simple words? This new generation of the decentralized digital currency created and working only on the Internet. Nobody controls her, issue of currency happens by means of work of millions of computers worldwide, using the program for calculation of mathematical algorithms. The bitcoin essence consists in it.
What is bitcoin and what differences from traditional electronic money such as yandex money, webmoney, PayPal, qiwi?
For bitcoins you can also buy anything on the Internet as for dollars, euro or rubles, and it also bargains at the exchanges, as well as they. But the most important difference of bitcoin from all other forms of money – decentralization. Any establishment in the world doesn't control bitcoin. It nonpluses some since it means that no bank can control your money.
Who has created bitcoin?
The developer of the program calls himself Satoshi Nakamoto, he has offered the electronic payment service provider based on mathematical calculations. The idea consisted in making exchange of coins without any central power, in electronic form, more or less instantly, with the smallest expenses.
But who prints bitcoins?
ANYBODY. The currency isn't printed by the central bank and doesn't work by his rules. Banks can print some money to meet a public debt, thereby depreciating the currency.
On the contrary, issue of bitcoins is possible only in a digital form and anyone can begin to get or as speak to maynit bitcoins at any time. The Mining of bitcoins happens by means of use of computing capacities of the computer in the distributed network. At transfer of bitcoins, transaction it is processed by the same network, turning thereby bitcoin into independent digital payment service provider.
It is possible to extract one billion bitcoins?
It is impossible. In a code of bitcoin there is a restriction, it is possible "to get" a maximum 21 million bitcoins. Despite it, the bitcoin can be divided indefinitely into smaller parts, same digital currency! 1 Satoshi is 0.00000001 btc (called in honor of the creator)
What has provided bitcoin?
National currencies were provided usually with gold or silver, to GDP now earlier. Theoretically you could come to any bank of the country and exchange the paper money for an equivalent of gold and back. The bitcoin isn't provided with anything, it is abstract mathematics.
Any person around the world can start a script on production of bitcoins at himself on the computer and feel the Mini-Central Bank. Initial the code of a script is published in open form, everyone can look as he works.
In what differences?
The bitcoin has several fundamental differences.
Decentralization
The central control authority of network doesn't exist, the network is distributed on all participants, each computer extracting bitcoins is a participant of this system. It means that no central body has an opportunity to dictate rules to owners of bitcoins as, let us assume, it was at the beginning of 2013 in Cyprus. And even if some part of network will go to offline, the payment service provider will continue to work steadily.
Usability
Seven steps of hell need to be passed to open the settlement account for firm in our banks, and can be to you will refuse without explanations of the reasons. For bitcoin it is not a problem, to be necessary for you 5 minutes to create bitcoin a purse and at once to begin to use him. Without questions, without the commissions. In more detail about that how to create bitcoin a purse read in our article.
Anonymity
Yes, yes. It is completely anonymous and at the same time completely transparent. You can create infinite number bitcoin of addresses without binding to a name, the address or any other information. However …
Transparency
The bitcoin stores all history of transactions which ever took place, it is called a consecutive chain of blocks or a blockchain. The chain of blocks knows everything. Therefore if you have publicly used bitcoin the address, anyone can look how many at you on the account of bitcoins if you haven't reported that it is your address who never learns that he belongs to you. For full anonymity usually use one bitcoin the address for the only transaction.
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