Bitcoin has been in the news lasts, but many people are not yet aware of them. Could Bitcoin be the future of the coin online? This is just one of the questions, you often ask Bitcoin.
How does Bitcoin work?
Bitcoin is a type of electronic currency (cryptomonecura) that is autonomous of traditional banking and came into circulation in 2009. According to some of the main online merchants, Bitcoin is considered as the best known digital currency that is based on computer networks for networks for computers to Solve complex mathematics. Problems, to verify and record the details of each transaction performed.
The Bitcoin exchange rate does not depend on the Central Bank and there is no single authority that governs the supply of cryptonecurrence. However, the Bitcoin price depends on the level of confidence that its users have, since the most important companies accept Bitcoin as a method of payment, more successful will be Bitcoin.
Bitcoin benefits and risks.
One of Bitcoin’s benefits is its low risk of inflation. Traditional coins suffer from inflation and tend to lose their purchase power every year, since governments continue to use quantitative easing to stimulate the economy.
Bitcoin does not suffer from low inflation, because Bitcoin mining is limited to only 21 million units. That means that the release of new Bitcoins is slowing down and the total amount will be extracted in the next two decades. Experts have predicted that the last Bitcoin will be extracted by 2050.
Bitcoin has a low risk of collapse, unlike traditional coins depending on governments. When coins collapse, lead to hyperinflation or wipeout of one’s savings in an instant.
The Bitcoin exchange rate is not regulated by any government and is a digital currency available around the world.
Bitcoin is easy to transport. You can store a billion dollars in the bitcoin on a memory stick and stand in your pocket. It is easy to transport Bitcoins compared to paper paper.
A disadvantage of Bitcoin is its implacable nature, since governments and other organizations can not trace the source of their funds and, as such, can attract some unscrupulous people.
How to make money with Bitcoin
Unlike other currencies, there are three ways to earn money with Bitcoin, savings, commerce and mining. Bitcoin can be exchanged in open markets, which means you can buy Bitcoin Low and sell them high.
The value of Bitcoin fell in recent weeks due to the abrupt detention of trade in the MT. GOX, which is the largest Bitcoins exchange in the world. According to non-fiber sources, trade was stopped due to the robbery related to the miserableness that was said to be more than 744,000. The incident has affected the confidence of investors to the virtual currency.
According to Bitcoin’s table, Bitcoin’s exchange rate rose to more than $ 1,100 last December. That was when more people realized the digital currency, then the incident with Mt. Gox occurred and was reduced to around $ 530.