What is Bitcoin, and how does it work?

Surely you have seen and heard of people who have become million-dollar with the Bitcoins, of people who are making a lot of money buying bitcoin. But the interesting thing about this whole issue is that as something unknown, attracts people who do not know what they are talking about. The truth is that more and more those interested in invest in Bitcoin are more and more and more and more they want to learn how it works, and more importantly, as they can do to earn money with this cryptomoneda.

For this reason, now more than ever it is advisable to know that they are the Bitcoins, as they work, the benefits and as people are generating important income with this cryptomon.

What is Bitcoin?

When you think about Bitcoin you must imagine it as a currency, like a currency. That is, it is like a dollar, one euro, or a Mexican weight. Precisely, a bitcoin at the date of today is worth $43.467.39. So, bitcoin is a coin, and you can pay me for my services in Bitcoin, or I can pay you for your computer in Bitcoins. But the only difference between the dollar and the bitcoin, is that the Bitcoin is a virtual coin.

The other national currencies such as the dollar and the euro, are technically coins that can be exchanged physically when paying with bills or coins or also virtually when making a bank transfer.

But The Bitcoin is 100% virtual, that is, that all transactions are made virtually over the Internet. So, if you want to buy a complete bitcoin, you will have to pay almost $44,000.

The dollar, the weight and the euro have cents, that is, fractions of an entire dollar. You too You can buy a Bitcoin fraction. Therefore, the bitcoin is a virtual coin that can be exchanged among anyone around the world.

How does Bitcoin work?

There is a term that has emerged a lot since the Bitcoin started. I'm talking about the Blockchain, in Spanish it is known as blockchain. It is a completely new and revolutionary technology in the exchange of cryptomoneds.

The chain of blocks can sound as a complicated topic to understand, but the way it works is that it is a public and virtual accounting system, where each transaction is made on the Internet and eachBitcoin that is transferred can be tracked up to its origin.

As the same name suggests, Transfers in Bitcoin are performed in blocks and that is why it is called blockchain. Unlike a dollar transfer or euros, we can not count on what hands that dollar has fallen or that euro they have on their wallet or those who have in their bank accounts.

While with Bitcoin If you can, in fact, you can see the history of that money and another detail is that transfers can be carried out completely anonymously.

“Block chain is a virtual accounting system where Bitcoin transfers are made and where you can track all the activity that a bitcoin has had”.

In short, we will not know the name of the person who transfers the coins of Bitcoin. If not, the name of your virtual address or your virtual portfolio. This technology of blockchain is the most surprising and most revolutionary when it comes to the cryptomoneds.

BENEFITS AND USES OF BITCOIN

There are many Bitcoin benefits, but the most recognized are security, efficiency, its ease of exchange and also inflation protection. Now, it is true that the bitcoin is very safe. In theory, nobody can steal you Bitcoin, because they are not physical and because we can also see where they left. But in practice, of course if you can steal it.

Once you make a transfer in Bitcoin, this is irreversible, unless the container returns you. For that reason, bitcoin is not 100% safe because there are many hackers that can be extorted and stealing your bitcoins.

As for its efficiency and how easy they are to exchange, there is no doubt that bitcoin is very efficient. Transfers are traceable and virtual, and we can know everything we need to know where a BTC came from. These same transfers are made in a matter of seconds and are very cheap.

You can send BTC easily from Hong Kong to Argentina, while if you want to transfer dollars from China to South America it will be a problem and very expensive. You would have to involve banks, you will have to pay to change weights for dollars and there are going to be minimal intermediaries that will charge you a good amount for the transfer. Then, the bitcoins if they are efficient and cheap.

If we talk about the protection against inflation, coins such as pesos, bolivars and others have very high inflation levels. While in Bitcoin no, it's more, recently the bitcoin has been appreciating against the dollar, for example.

How are you gaining money with Bitcoin people?

There are already people who are generating a lot of income by buying Bitcoin, there are those who have become millionaires and there are others who have earned around 200 thousand dollars by buying Bitcoin, not investing. Some think that Bitcoin is not really an investment, because an investment is the use of capital to work and generate more capital.

For example, you can invest in the bag. Because the companies that you purchase in the stock market are working and generating income, and those income then pay them as a dividend. But as for the bitcoin, you are not investing, you are only buying Bitcoin. It is as if you will buy a euro or a dollar.

The only difference in Buying Bitcoin is that Bitcoin has risen a lot of price for the great demand we have seen in recent years. From the beginning of Bitcoin it has become very popular that people buy BTC. There are those who buy thinking that they are going to rise in price and do not use the bitcoins as a coin to buy and sell things.

If we compare the value of Bitcoin for January 2016, a Bitcoin was worth around $450, while at present it is worth more than $43,000. Now imagine how many people have won a lot of money by buying Bitcoin years ago. If you had bought 24,000 Bitcoin in 2016, today you would be a millionaire.