If you have never heard the word “Bit coin” -” BTC “, then you do not follow the world events in the field of finance. Despite the fact that lately, only lazy does not write about bit coins, almost no one can clearly explain the basic idea of this system, not to mention the technical details. We decided to independently deal with bit coins and tell you about it.
Let’s start with the definition of the term and a brief history. The word “Bit coin” has several meanings; most often under it imply a decentralized anonymous e-currency. Despite the relatively recent surge in interest in bit coins .
The system appeared in 2008. It was then that a person (or a group of people — no one knows) under the pseudonym Satosi Naka motto published a report describing the principle of how the technology works.
Like any currency, you can exchange ordinary money for bit coins according to the established rate, for this there are many specialized exchanges. However, Bit coin differs from other virtual payment systems by the possibility of mining – each participant can play the role of a “gold miner” and find “grains of gold in the ore”.
For mining, you need a computer that will pick up 64-digit numbers, and this is most often done on a graphics processor due to higher efficiency. The computer generates random numbers, trying to pick up a key for a block – a bundle of bit coin exchange transactions. This process is carried out simultaneously with other members of the network; the winner gets 25 bit coins.
The bit coin system is decentralized and programmed to generate a fixed number of coins in a certain period of time. At the moment, every 10 minutes, 25 new bit coins appear in the network. In 2140, the total number of coins will be more than 20 million. In other words, the Bit coin system is not amenable to inflation and any influence from the outside.
When the system was only put into operation, it was possible to buy 1,300 bit coins for just one dollar. However, over the past years, the course of Bit coin has seriously changed!
Is it possible to exchange bit coins for real money?
Naturally. To do this, it is enough to use any exchange service.
In addition, you can buy various goods and services on Bit coins. For example, you can pay for a room in the Howard Johnson hotel chain with the help of accumulated bit coins, and the Bit Electronics store does only work with virtual currency.
Bit coins do not have any binding to a particular country, so the system offers a relatively convenient opportunity to move money around the world with minimal cost.
There are already a number of startups that base their business model, or one of the bit coin earning channels.
Have any of the readers come across bit coins in practice and have you tried mining?
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