Bitcoin – a virtual currency used for electronic transactions

The ups and downs of Bitcoin are one of the main topics in the global economic press. Why is this online creation so moving the imagination of millions of people? Why do economists pay so much attention to him? Discover a guide to the world of digital currency, Bitcoin.

What is Bitcoin?

Its existence is based on extremely advanced cryptography and P2P (peer-to-peer) exchange networks, i.e. without intermediaries. Bitcoins can be used to finance various electronic transactions in a simple, fast and fairly secure way.

cryptocurrency creation system

Bitcoin use

Anyone  who has a computer can mine bitcoin price . Gold was a clear inspiration for the creators of this currency – the way it was obtained and functions in the economy. Simply put, Bitcoin can be obtained by sharing the computing power of your computer. The cryptocurrency creation system works as a kind of perpetual motion device – the work of PCs “miners” is needed to carry out Bitcoin transactions on the network. However, there is a catch, because in fact for the average person the chances of getting one coin, worth almost a thousand dollars today, are small. Here you need great computing power, obtained through the use of entire farms and powerful servers. Some entrepreneurs risked buying powerful computers and paying huge electricity bills. Before they can extract a few Bitcoins, it may turn out that they have lost their value, thereby generating a loss for the entire business. Interestingly, the authors of cryptocurrency included in their concept a clever mechanism regulating excavations. Well, the more “miners” in a given period try to obtain digital coins, the more difficult this task is. When groups of prospectors give up further efforts, Bitcoin mining becomes easier, encouraging new “miners” to take action.