Have you ever heard of Bitcoin? In our previous article we had already explained to you how in reality there are many digital coins, but today we want to talk to you in depth about the first and most famous cryptocurrency: Bitcoin . This is money that can be used to make purchases and to manage a large part of online transactions. Over time, this virtual currency has shown to be extremely variable, so much so that it is considered the currency of the future.
Read also | What are Cryptocurrencies
The peculiarity of Bitcoin is the fact that it is not owned by any bank and this protects users from possible financial speculations. Furthermore, its value cannot be affected by inflation since the number of Bitcoins in circulation has a fixed ceiling which is known in advance to all its holders.
- What are Bitcoins
- How Bitcoins Work
- What can you buy with Bitcoins?
What are Bitcoins
Born in 2009 thanks to Satoshi Nakamoto, Bitcoins are virtual currencies, not real, intangible with which you can buy goods and services and it is also possible to proceed with the exchange between current currencies, such as the euro or the dollar. People who buy a commodity in exchange for Bitcoin must recognize the currency and subsequently accept its value.
Although very similar to real coins, Bitcoins have a very variable currency system as their value is determined by the law of supply and demand . Anyone can use it and mint it even if there is a maximum limit of coinable Bitcoins, for example, it is not possible to exceed 21 million units.
Being a currency, Bitcoin is a virtual currency that has no bodies and central banks that control its value. This means that the value depends solely on the expectations of those who trade them. Since there is no central bank, anyone can participate in the exchange: just download a wallet and from that moment on you can receive and buy money from all over the world.
In fact, all transactions are recorded in a public ledger called the Blockchain . This ledger is open to everyone but above all it is equipped with a control system so that it cannot be changed. In order for a transaction to be successful, the approval of at least the majority of the participants participating in the blockchain is required.
Read also | How the Blockchain works
How Bitcoins Work
To be able to buy and use Bitcoin it is necessary to put into practice a series of activities . The purchase and exchange of this currency takes place according to a peer-to-peer protocol .
Bitcoins are found in the Blockchain , that is, a public and distributed online register that can only be accessed if you have a wallet or even a defined user wallet.
Inside each user’s wallet there is a pair of cryptographic keys : the public key used to send or receive payments, and the private key used to digitally sign and authorize transactions. Once the users have signed, it is necessary to verify the validity of the transaction which takes place by solving a complex system of mathematical operations and which requires a great deal of computing power.
Subsequently this “block” is added to the Blockchain to be verified and approved. Once the transaction has been verified, it is added to the chain, and in order for a transaction to be successful, the approval of the majority of participants participating in the blockchain is required.
