Every thing you should know about bitcoin
What Is Bitcoin? A question that make every one think about it.
Eleven years ago, a currency emerged that differed from all the world’s major currencies. This currency, which was foreign to the rules of financial markets, did not exist in the form of banknotes or coins.
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The money, which was all offered digitally, gained immense popularity in a short time and fascinated many. But what was this new money and why has it caused so much controversy to date?
In a word, bitcoin is a virtual currency with which you can buy and sell, place orders online or trade shares of trading companies. Bitcoin is based on computer code and follows unique rules, not rules set by banks or large financial funds.
Who created it?
Satoshi Nakamoto is credited with inventing bitcoin; A pseudonymous name whose true identity has not yet been revealed despite the efforts of journalists for many years. So far, several people have claimed to have created it, but they have not been able to prove their claims, and the identity of the creator or original creators of Bitcoin is still unknown.
What is the difference between Bitcoin and real money?
Bitcoin does not exist in banknotes or coins, and unlike currencies such as the dollar or the euro, it is not supported by any central or government bank. The production and distribution of bitcoins is not under the control of any government, group or organization. There is no hidden mechanism in it and its rules, which are in the form of programming code, are visible to everyone.
Bitcoin is actually an unsupported currency because it has no intrinsic value and changes in its unit are not subject to changes in the prices of commodities such as gold and silver or the rate of inflation and increased liquidity.
What is the advantage of it over real currencies like the dollar?
Real currencies are vulnerable to major economic crises. A crisis in the financial markets or a shock to the industry is enough to change the value of money or its exchange rate. But because the amount of bitcoin in the world is limited and follows its own unique rules, it is immune to common harms in economic and financial debates.
How are bitcoin coins obtained?
The common terms “mining” and “mining” for bitcoin may suggest that the money must be dug out of the ground. Of course, the bitcoin production process is very similar in nature to mining gold, but with the difference that here everything is done digitally and we do not have physical work.
In the initial design of the network, a certain number of bitcoins were defined. These bitcoins are not available and must be withdrawn by individuals with special devices. but how?
Simply put, bitcoin comes from solving complex mathematical problems. To do this, mining computational devices test different numbers in a mathematical function called a hash function to predict output. The first person to solve the problem and get the correct function will receive a certain amount of bitcoin as a reward. He then announces to the rest of the network that the answer has been reached here. As a result, the rest of the people move on to the next issue in the next block.
If we want to discuss the nature of these data blocks more technically, we must say that the nature and center of gravity of the bitcoin system is based on what is called the “block chain”. This is an advanced model in database architecture and its strength is that many users can simultaneously register their data in the network without the network being disrupted due to user interference and losing its integrity.