Many Internet users today are interested in what bitcoins are. In simple words, it is the most popular and well-known cryptocurrency on the Web. The very same interest of people in cryptocurrencies is quite understandable. After all, the rate of most of them, including Bitcoin, is steadily growing day by day.
So what is Bitcoin in simple terms? This cryptocurrency was created by some mythical Satoshi Nakamoto. Who this is, no one on the Internet knows. Maybe this is a very smart Japanese, maybe there is some large corporation behind this phrase, or maybe it's just a letter anagram. In any case, the Bitcoin system works and allows a huge number of people to quickly enrich themselves at resale. Suffice it to say that in 2009 one bitcoin was worth one thousandth of a dollar. Today, this figure has increased to about $ 10 thousand (for 2017).
What is Bitcoin in the simplest words
To understand what bitcoin is, you need to remember, first of all, the reasons for inflation. Currency rates fall primarily due to the fact that banks begin to print unsecured paper money. Bitcoin, unlike a regular currency, cannot be subject to inflation in principle. In fact, this is some kind of virtual "gold" that can only be bought or mined.
Why is this happening. It was possible to achieve that this cryptocurrency became an analogue of "gold" by limiting its amount (after all, the amount of this precious metal in nature is limited). A special program is responsible for issuing bitcoins, which works on the same principle as torrents. That is, being installed on the computers of millions of users, it allows the latter to communicate directly, without any intermediaries.
Mining of virtual "gold"
Initially, bitcoins, or as they were called then, "points" were given to users only for the fact that they installed this program on their computer. Later, the creators of the new payment system made the task more difficult for their followers. For receiving bitcoins, computers of the latter had to solve complex mathematical problems. The number of bitcoins themselves was limited to 3,600 per day.
Over time, the number of people wishing to receive bitcoins began to grow. The number of "glasses" themselves, given out per day, did not increase. Therefore, in order to get bitcoins, users' computers were forced to solve more and more complex mathematical problems. As a result, some users even have real powerful computer "farms" that allow them to mine the largest possible amount of "gold" - bitcoins per day.
What is the essence of bitcoins today: selling virtual "gold"
Only 3600 bitcoins are issued to users per day. But that's not all. The amount of this currency, like gold in nature, is generally limited. In total, users are supposed to give out 21 million bitcoins and none more. According to the issuance schedules, everything should end in 2033. This year the last bitcoin will be issued. It is then that the reserves of virtual "gold" will be completely in circulation. Until 2033, the price of bitcoin will grow steadily. After all, the number of “glasses” issued per day and already in circulation is limited, and the number of those who want to receive them is constantly growing. That is why many people today buy bitcoins and resell them after a while, making money on it. In this case, the effect of the financial pyramid and the "last fool" simply works.
Where and how you can spend bitcoins
So, what is bitcoin is clear. In simple words, this is virtual "gold". But how can this cryptocurrency be spent? In Russia, bitcoin, unlike many other countries of the world, unfortunately, has not yet been recognized. That is, our compatriots do not have the opportunity to pay in domestic online stores for goods with this currency.
So why do Russians need bitcoins? Of course, this currency can be useful for the citizens of our state. After all, they can buy something abroad for bitcoins even today. For example, this currency is accepted by such well-known retail chains as Amazon and eBay. You can also buy tickets for it (CheapAir), book hotel rooms (on Expedia), etc. In addition, bitcoins through special exchange offices are not too difficult to sell for ordinary money.
