History of creation and development of Bitcoin
Money interested people at all times. The desire to possess them became the goal of life for many people and many they broke my life, and the rest was immersed in the tale. The emergence of electronic money wasn’t bothering anyone, which is quite natural. But the currency, which we describe in this article, caused a sensation around the world. A particularly strong hype around it arose in late 2013 when her rate for one month rose to$ 1200. We are talking about Bitcoin.
Bitcoin was invented in 2008 by Satoshi Nakamoto, the name of which has long gone a lot of myths (some thought it was not one person but a group of programmers). The situation is not cleared up and after he has been found in the United States. To discuss your creation Nakamoto flatly refused. In 2010 Bitcoin was used only a few dozen programmers. Cryptocurrency needed in advertising, and she got it. First, the Winklevosses announced that all the money that the brothers sued Zuckerberg, they have invested in Bitcoin. Then in China was a strong earthquake. Easy Chinese teacher Saali opened the scoring in the Bitcoin for victims of the disaster. Although a lot of money Saalau failed to collect, but the information got in the media.
What is the essence of Bitcoin and how to obtain it?
Bitcoin is software-client open source. Thus, these currencies can be as much as necessary. Currently, there are perlini and litecoin. Customers with different PC are combined with each other in a decentralized network where each node is both a server and a client that allows normal, to function smoothly regardless of the combination of nodes and their number, to study the purity of the transaction.
Bitcoin is a peer-to-peer (there is no centre, which deals with the issue of money and control of their flows) currency supported by this network. Your transfer to another account will not be blocked. If you donate some «good organization», then the government will not deny you a visa. The basic principle of the system is to not trust anyone and everyone should check it out.
Mining bitcoins is called «mining» because it is similar to work in the mine. However, here the use of computing machines, which are Prime numbers. Before bitcoin was mined while sitting at home on your PC. Today, the power level of standard PC graphics cards do no longer allow. Therefore, miners of the cryptocurrency merge networks, which consist of several super cars, but the costs only grow. The maximum number of bitcoins – 21 million. After extraction, half of each of the following bitcoin to mine is becoming harder and harder.
The fundamental paradox of the existence of bitcoin is that it has force until the moment someone needs it. Simply put, the more demand for bitcoin, the more its value. In this lies the main danger of this cryptocurrency, because at any moment she may lose value. Fears before depreciation of pushing retailers to enter the standard currency, which leads to a new fluctuations. Another danger – the endless DDoS attacks on exchanges which lead to the collapse rate for a certain time.
The transaction is not controlled. Implemented only embedded algorithm, the money is transferred from user to user. Consequently, the system operates until the parties make all the rules. If one of the participants decides to cheat, then bitcoin is worthless. However, this means that the fraudster will not be able in the future to benefit from this. So against the system not going.
All of the above does not mean that the system is 100% protected from fraud. After all, to engage in mining are only a few «bitcoin farms». The success of the network depends on the honesty of these people, however, the authorities are rarely pushed them to the fraud.
So what’s the secret of the popularity of the Bitcoin system? Reasons for the popularity of this system quite a lot. First, all transactions and the bitcoin is not controlled by the government, which today is trusted by few. The main reason for this is a frequent crisis due to the fluctuations of normal currency. This is especially true of the U.S. dollar. Indeed, thanks to its independence from the American economy, States such as Germany, China have already expressed their confidence in bitcoin. The U.S. Treasury also has nothing against cryptocurrency.
Economic postulates of trust to the PTS is also strong. Many venture funds have already invested in a particular currency. Every year there are dozens of new exchanges VTS. This process could affect even the collapse of the largest of them is MtGox. The last crash course of recent events does not mean the end of an era. This only increased the hype around the currency. Currently the price of 1 bitcoin is around 597$. It’s certainly not the$ 1200 as last year, but we should not forget that it was only a short burst is due to the simple excitement.