Wonderful Engineering

Bitcoin And The Strong Concept That Underlies Cryptocurrencies

Also known as BTC, the virtual currency Bitcoin, was first introduced in 2008. So far it has been recognized as the first cryptocurrency. But it was only in 2013 that it began to gain greater popularity. Quotation values ??opened at $ 13 that year, in January 2014, closed at $ 770. In one year, the increase was 5,823%, a very high rate of return for the short period of time.

In the following years, BTC continued to have more demand and repercussions. In this way, the currency gained notoriety and headlines in the newspapers. In 2013, Bitcoin had some amounts confiscated by U.S. authorities for involvement in illegal activities. In the same year, China banned the use of cryptocurrency in financial institutions. But the record value in the currency’s price came only in 2017, at the time a unit was quoted for 19 thousand dollars.


What is BTC?

BTC can be defined as a digital currency, with the value of bitcoin being defined by who has it and by the market. In addition, bitcoin is a currency in which its users do not need any institution to make transactions. Another point is that it is not issued by any government. BTC was the first cryptocurrency, using a technology that uses cryptography to ensure the secrecy of all operations.

Bitcoin does not exist physically, that is, it is not possible to find money bills, it is completely virtual. In addition, it is produced in a decentralized manner by thousands of computers and is maintained by users. Basically, they “borrow” computers to create bitcoins and record all transactions.

How did Bitcoin come about?

Several newspapers around the world have already investigated who the Bitcoin developers are or who they are. Its origin is attributed to Dorian Nakamoto, a pseudonym used by Satoshi Nakamoto, although he always denies involvement with the creation, which, at least officially, remains anonymous.

The last time this name was used, was in 2010, for changes to the bitcoin software itself. The only places that appear are in a BTC forum post.

Bitcoin allows all users to make transactions without any kind of intermediary, and transactions are verified by several users. This system is called blockchain and basically transmits data in a decentralized and transparent way. Thus, it is not necessary to rely on a third party for the data to be checked, decreasing the chances of fraud.

With the advent of Bitcoin, several other digital currencies became popular in the following years. According to Coinlib, a digital currency indexing company, up to 2019, about 5,000 digital currencies were already known. Some of the most popular are:

Monero
Ethereum
Litecoin
EOS
Ripple

It is see bitcoin as a good investment. We indicate that Bitcoin and other cryptocurrencies will be one of the best forms of return in the long run. This is evidenced by the increasing number of trading tools created, one of which is what is explained in this link: https://learnbonds.com/bitcoin-robot/bitcoin-up/.


With cryptocurrencies each user is responsible for storing their information. Thus, this address or code can be stored in a digital or physical location. It is the data that will represent the real amounts of money, different from the Stock Exchange, for example. When access to cryptocurrency data is lost, access to all digital currencies is lost. At BTC and any other cryptocurrency the user is responsible for keeping the access data. 

Regarding information security, it can be said that it is safe to carry out transactions with Bitcoin and most cryptocurrencies. Currently, there is a lot of technology (heavy encryption) behind this system, however, caution never hurts. For those who carry out transactions with the cryptocurrencies, it is necessary to pay close attention to the security of their data, especially their personal passwords.

Internet scams are nothing new and have already compromised the confidential information of hundreds of people and companies. When it comes to cryptocurrencies, always check the credibility and provenance of the sites so as not to fall for scams.

All cryptocurrencies are based on blockchain technology. In summary, a blockchain is a means of keeping records of transactions. Overall, the blockchain is behind the entire cryptocurrency ecosystem in which Bitcoins, Ethereum, Litecoin, etc. are included. Translating the term literally, we could understand it as a chain of blocks. It is a digital accounting system that clarifies and validates records of virtual transactions.

This record, however, is fragmented. It is on every machine the software is running on – that means they are on millions of machines around the world, on miners’ personal computers and in cryptocurrency data warehouses. All transactions are encrypted in the mining process by crowdsourcing (resources and collaborative work for the development of solutions and products) and are stored in blockchains for future consultations and security of both parties involved in a negotiation.

It is thanks to the blockchain that there is no need for an intermediary in cryptocurrency transactions. It works like a gigantic book in which all transactions are recorded. The information recorded in this process is shared with all members of the system, being definitively recorded in the block chain. The block chain, in turn, is the foundation stone of the future currency, which has forever changed our view of the medium of exchange.