Bitcoin what. What is Bitcoin in simple words: another electronic currency or a new generation of money? What are Bitcoin faucets?

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Many Internet users are wondering: what is Bitcoin (bitcoin, btc, btk, cue ball)? In short, it is decentralized (which means it cannot be faked or banned) electronic currency, completely protected from wear and emissions. In the first 2 years of its existence, the idea did not leave the borders of the World Wide Web. The population simply did not know about the currency or did not understand what Bitcoin was. But in a number of countries in South America and Japan it is already recognized as a means of payment. There, along with the state currency, you can use bitcoin.

Bitcoin what is it? What is Bitcoin? (+video)

Bitcoin what is it in simple words? The first thing you need to know: this is a virtual currency and it functions both on computers and on mobile devices. In addition, the Bitcoin currency does not have a central administrator or any control by people. As a result, this results in significant benefits for users.

The creation of Bitcoin was started in 2008 by a programmer under the pseudonym. The new currency came to world fame just 2 years later, demonstrating a steady upward trend. The name of the creator gave the name to the smallest particle (one ten-millionth part) - satoshi.

How do cryptocurrencies work (using Bitcoin as an example)?

So how does it work? To understand the principle of operation, it is best to compare it with an online bank, payment system or real bank. Translation into traditional payment systems looks like that:

You send the bank a request “I want to transfer 5 rubles from account A to account B.”
The bank or server decides whether the payment can be processed and also charges a commission.
Money comes from your account to the one you specified.

Therefore a large number of inconvenience to the user: server malfunction, legal problems with the bank or any other issues make both payments and, possibly, withdrawal of money from the account inaccessible. Now let’s see what Bitcoin is and how the system works.

Electronic bitcoin currency uses a special algorithm (blockchain), which evenly involves every computer working in the system in operations. At the same time, the devices themselves are not connected with each other geographically and can be located in different parts globe. Each device is also used to store information about current funds; everything is encrypted and duplicated many times.

Bitcoin payment algorithm

If we simplify and write it in the “bitcoin for dummies” style, then the sequence of events when sending a payment in cryptocurrency is as follows:

You create a request “I want to transfer 5 rubles from account A to account B.”
An algorithm decides which computer will process your transaction.
The information is “written in” and transferred to all devices in the system.
Bitcoins also go to B’s account.

How does Bitcoin work? Bitcoin what is it? All technical details (video)

How many are there?

Many people are interested in how many bitcoins there are in the world. this moment. Their approximate number is slightly more than 17.5 million (as of February 2019). The system provides for the creation of a new Bitcoin by means of what you use special device for computing operations and transaction data processing – . But it won’t be possible to “print” a lot of new currency in this way - the system has a limit on the quantity created bitcoins per day (3600 BTC).

There is a maximum allowable number of btc, upon reaching which mining (creation of new units of currency) will no longer be possible and it is 21 million. Using simple calculations from current indicators, it is easy to calculate that the increase in the number of virtual coins to the maximum will last for 150 years (approximately 2140), which means the questions “how many bitcoins are there in the world?” and “how many zeros does it have?” You can simply not ask yourself.

What is Bitcoin and what is its practical significance for the end consumer? There is no even theoretical possibility of producing such a quantity of cryptocurrency that this would lead to a fall in its price for a long time. A striking example: the US dollar has fallen more than 300 times over the past 100 years due to the emergence of more and more new money. At the same time, only one structure had control over their release. As a result, the investments and savings of millions of people could and could become worthless at any time. In fact, this statement works for every classical currency and payment system.

How is Bitcoin different from electronic and paper money?

Exists great amount differences between cryptocurrency and regular (fiat) money. Therefore, it is difficult for many to understand why bitcoin is needed. Let's try to figure it out:

The theoretical impossibility of inflation. Even the creators of the system will not be able to “print” more bitcoins. Their number is set at the level program code. If previously it was possible to create new units of currency (mining), now its quantity has irrevocably stabilized.
The absence of any intermediaries when carrying out transactions with Bitcoin: no server or other user can either accidentally or intentionally block a transfer or stop the operation of the system - it is not subject to outside influence.
Decentralization means that the operation of the system is ensured by each computer connected to it separately. In fact, the virtual currency Bitcoin will exist as long as at least one device is working. And now there are tens of millions of them in the world and the number is growing exponentially.
The absence of a central hub, administration and management means that no legislative or regional prohibitions on Bitcoin Internet money apply. When making transfers within the system, cryptocurrency is not subject to the jurisdiction of any state or individual.
Very high performance. Even international transfers take up to several minutes, regardless of the time of day and your location. And the commission for one transaction is minimal. In this component, the electronic currency Bitcoin has no equal.

A few more differences

Records of transfers are public and available to the public. You can track where your money went and where it came from. At the same time, anonymity remains at a high level.
Easy registration: the Internet currency bitcoin does not require the disclosure of personal data. You don't need to go through complicated procedures to create one. The process takes a few minutes at most. The number of accounts is also unlimited.
Division into ultra-small shares opens up completely new opportunities for trade and entrepreneurship that were previously unavailable. In most cases, there is no transfer fee at all or less than $0.01.
No one can block your account under any circumstances. Once created, it will exist as long as the system itself operates.
No one, not even the state, can take away the money in your wallet. If only you have the key to account, then you have a real one hundred percent guarantee of the safety of your money. The digital currency bitcoin is completely safe.
The number of transfers, the volume of bitcoins sent or received are simply not available.
During all the searches in the system, we did not find almost a single critical bug; the client for work is constantly updated. The software is convenient even for those who do not know why bitcoins are needed.
Soaring prices. No type of fiat money has increased by several thousand times in a decade. Compared to fiat, the Internet currency bitcoin, the rate of which is already over $3,600 per piece (February 2019), was able to easily increase demand and rise in price.

So, what are bitcoins and how to earn them in 2019. There are several ways to receive cryptocurrency:

1. On stock exchanges.

At the moment, there are many options that actually work and are usable:

The main part of the market (about 70%) is held by the btc-usd pair. Most of these services require authorization, which includes sending scanned documents for verification.

2. Exchange services for Bitcoin and other cryptocurrencies

Telegram bot for Bitcoin
Telegram for Bitcoin Cash
Telegram for Ethereum
Telegram for Litecoin
Telegram for DASH
Telegram bot for DOGE (Dogecoin)

They work on a principle completely similar to conventional exchange offices, charging a fixed percentage for the operation. Synchronize the rate several times a day with one of the exchanges listed above. Allows you to purchase btc using almost any traditional payment method.

3. Bitcoin -

Sites that give away a small portion of Bitcoin for free. There is no danger to the user in them - the service simply uses your computer for certain operations, such as mixing flows of funds. The amounts that can be received in this account are extremely small, but the process itself will allow you to answer questions like “Do you need the virtual currency bitcoin btc?”, “What is bitcoin and how does it work?” etc.

4. Buying second hand

On forums dedicated to bitcoins, you can find a large number of cryptocurrency owners in your city. It is important to carefully monitor the reputation of the seller and ask which services can be used to promptly verify receipt of funds. This is not difficult even for those who do not know how to work with bitcoins.

A few years ago, the above-mentioned mining (generation of bitcoins) could have been included in the list. But now the popularity of cryptocurrency has reached too high a level. With a limit on the daily rate of created blocks, this makes earning even a meager amount of money in this way an almost impossible task.

Bitcoin cryptocurrency: how can you use it?

And yet, what to do with bitcoins? There are many options both for those who like to make money and investors, as well as those suitable for less risky users who do not know what bitcoins are and why they are needed:

1. Storage

The best answer to the question, what are Bitcoins for? If we analyze the graph of the behavior of the currency price against the dollar, then the unconditional maximum was in December 2017 - $20,000. Virtual money Bitcoin, the rate of which exceeds $3,600 per 1 BTC (February 2019), periodically breaks value records. In addition, all trends indicate that the demand for cryptocurrency will grow very quickly and within 2 years they will replace international payments from the market. Where is the best place to store bitcoins is a controversial question and will be discussed in one of the sections below.

Considering the limit on the amount of currency in the system (21 million), with increasing demand, electronic money Bitcoin will inevitably increase in price. Another thing is that the security requirements for your computer are increasing significantly. Because all transfers in the system cannot be canceled. In fact, it is precisely the original limitation that Bitcoin is secured with. There is basically no chance of your investments depreciating in the long term. It’s worth thinking about how to store them now.

2. Make international payments

Among freelancers and remote workers, paying with bitcoins has become commonplace. It's cheap, reliable and anonymous, which is what he's always been famous for. The operating principle of which is based on decentralization and strong encryption. In addition, this is a very simple process: even those who have no idea what electronic money Bitcoin is can figure it out in two minutes.

3. Pay for services using Bitcoin

At the moment, btc can be used to pay with Dell, Microsoft and Amazon. Not to mention hundreds of smaller stores and services. In the countries of the European Union, South and North America, as well as Far East You can easily use them to pay for food, clothing and other small goods. Bitcoins are in great demand around the world. Even in Russia, Rostov-on-Don, a famous cafe began to accept them.

4. Gamble, make sports bets

Play gambling, place sports bets, use them for trading on stock exchanges, even if they simply do not exist in your country. Here everything is limited only by the imagination of the developers of various projects and the possibilities of cryptocurrency. After all, what is Bitcoin in simple words? The ability to spend money anonymously and quickly.

Disadvantages of Bitcoin

Although Bitcoin has many advantages, the currency also has many disadvantages and it is worth considering them during the dating process:

If a virus erases your Bitcoin wallet file (this applies to accounts that are located on local devices) or will be able to track your password - your money will not be returned. In addition, this includes a fairly large amount of space taken up. The entire transaction block (beginning of 2019) already occupies more than 200 GB. This is a consequence of how cryptocurrency is structured. Secure synchronization (database update) will also take certain time. As a result, this will affect ease of use.
If you figure out why Bitcoin is needed and decide to invest money, you may experience a drop in price due to lack of demand. The value of a cryptocurrency is determined by capitalization and demand (and only by them) - this is a consequence of how Bitcoin works.
Bitcoin virtual money does not support refunds in case of password theft or fraud. As a result, no one has the power or authority to reverse a Bitcoin transaction unless the person who took it back returns it to you.

Bottom line

Now we have dealt with the question of Bitcoin - what is it - an interesting alternative to money, which has a right to exist. Yes, the currency also has a number of disadvantages, but they are completely offset by a huge list of advantages and the ever-growing demand for cryptocurrencies. Over time, its price and importance in the world will only increase.

Now we understand what the essence of bitcoin is. Tell us your opinion about this digital currency. How long has she come to our world and what will her future be like? Let's share our experiences and help each other with this.

Whatever the activity that brings in money, in order to achieve success, you should know everything about the chosen field. Mining and making money on cryptocurrencies is no exception. To obtain a stable income, you should not only study the features of creating wallets and making a profit, but also the history of the emergence and development of virtual money. Only by knowing who invented Bitcoin and why can one understand the principles of its functioning.

In addition, knowledge of such an entertaining story will significantly expand your horizons, which is never superfluous. And the last reason confirming the need to study the past of cryptocurrencies is the assertion that by studying the past, one can predict the future of electronic finance.

It is not known how long the creator of Bitcoin had been nurturing the idea of creating crypto money and in what year such an idea first came to him. But there is no doubt that the emergence of cyber money did not happen spontaneously.

Satoshi Nakamoto developed a harmonious system that can exist in almost any conditions. He created a currency and told his subscribers about it mailing list. In it, he talked about the basic principles of the system and explained why virtual finance is needed. He said that a self-regulating system independent of the owners can provide fair, free access to money. An additional advantage new money became its protection from inflation.

When did Bitcoin appear?

It was at this moment that the first document mentioning the new cryptocurrency appeared. After 3 months, the first cybermoney application appeared, and a few days later the first transfer took place.

But it is worth noting that the idea of virtual currency appeared long before the system developed by Satoshi. References to independent, secure money appeared in the 1999 novel Cryptonomicon.

And a year before the publication of this work, unique developments of the first independent monetary unit appeared. Researcher Nick Szabo tried to develop a special mechanism that was supposed to speed up the emergence of virtual currency. He failed to succeed in this business, so in 2005 he simply abandoned it.

How much was Bitcoin worth when it came out?

The first bitcoins were incredibly cheap. For $1, anyone could purchase from 700 to 1,600 units of cryptocurrency.

Satoshi Nakamoto, the creator of Bitcoin, developed simple system valuations of the new currency.

He proposed multiplying the average power consumed by a running processor by the cost of electricity in the United States. The resulting number had to be divided by the amount of money generated over a certain time.

A similar system worked in the first months after the birth of cybermoney. The growth of their popularity required the use of conventional market mechanisms, in which the price depended on existing demand. This approach gradually replaced the previous one.

First deals

It took a year to create the first exchanger where bitcoins were issued for real money, but the rate in effect at that time was practically unknown to anyone. But no one doubts the timing of the conclusion of the first serious deal.

On May 22, a user of a large cryptocurrency forum said that he was ready to buy 2 pizzas for 10 thousand btc.
It didn’t take long to wait for the first people who wanted to earn cybermoney. Already in August, the announcement was withdrawn, since the current exchange rate made it meaningless. At that time, they offered $600 for 10,000 bitcoins.
One summer was enough for new finance to grow so rapidly. At the beginning of July, less than a cent was given per unit of cyber currency, and a few days later, after the publication of news about the appearance of the updated application, the total cost increased almost 10 times, to 8 cents.
The growth did not stop there; already in February 2011, bitcoins were equal to the dollar, and in the middle of the month an announcement appeared about the sale of a car for 3 thousand. True, there were no people willing to buy the car.

Falls and rises - the history of the cryptocurrency rate since its inception

Such growth cannot be explained solely by updating the application. There were other reasons for the rapid appreciation of the exchange rate.

A particularly serious impact on this process provided by the first major exchange network since the advent of cryptocurrency.

It was developed in August 2010 and it is with it that all the jumps in the cost of finance during the period of currency formation are associated.

Thus, an important milestone in development was the emergence of the ability to exchange cyber finance not only for the dollar, but also for other money. One cannot fail to note the importance of the article in Time, where the columnist described in detail the unfamiliar ordinary people monetary unit. As a result, in the spring of 2011, the total financial supply of Bitcoin increased from 5 million to 206 million dollars.

And already in the summer, wallet owners began to complain about the activities of hackers. The young exchange MtGox could not cope with the influx of users and could not provide reliable protection.

The lack of security led to the actions of particularly enterprising hackers overnight reducing the value of the currency from 17 dollars to 1 cent.

After this, the exchange closed for updates and security improvements. All transactions made over the past week were canceled, and the developers closely focused on protecting cryptocurrency holders.

Sharp rise in exchange rate

It took more than a year and a half to recover from the damage caused. But all this time, bitcoins grew steadily, increasing their popularity among others.

In February 2013, they became more expensive than $30, and in the spring they quickly reached the 2nd level of $266.

After another month, their value fell sharply again. Probably, ordinary market mechanisms played a role here, since no one knew how long the rate increase could continue and many decided to simply abandon crypto money in time.

But even such sharp jumps did not prevent the development of virtual finance. New growth was not long in coming; by November the price had already reached a new record and there was no sign of another fall.

Nowadays, few people are interested in the origin of Bitcoin; everyone is concerned about making money on it. And the last serious growth was recorded in 2019.

Within a few months, bitcoins doubled, reaching $4,500.

What are you provided with?

No one knows what the creator of cryptocurrency looks like or why he hides his identity, but many know his fundamental principles. These include the lack of collateral for virtual money. This allows you to avoid focusing on external factors when evaluating a course. It can only be influenced by the market demand for cyber money.

The history of Bitcoin confirms from the very beginning that Satoshi Nakamoto was not mistaken in his own calculations. A currency that is not backed by anything material continues its rapid growth, and serious factors that could throw it back simply do not exist yet. There is nothing to suggest that interest in crypto money will wane any time soon.

Alexey Russkikh

The history of the creation of Bitcoin, like the emergence of all other cryptocurrencies, was facilitated by a number of international studies in the field of encryption and coding of monetary transactions. In our article we will try to restore the chronology of these events.

Prerequisites for the formation of BTC

So, back in 1983, David Chaum, a researcher at the computer science department at one of the universities in Santa Barbara, thought about the problems of anonymity of payments, their transparency, and the security of monetary transactions. We can say that it was then that the idea of a new digital gold appeared.

After some research, the scientist proposed using the so-called “blind subscription” algorithm, which can be used to carry out secure transactions between anonymous users. At the same time, each such transaction and its origin will be visible to other users.

David, together with his colleagues from Israel, developed an electronic cash protocol, using which the merchant approves the financial transaction only after the authenticity of the payment by the other party is confirmed. It is this technology that has become the foundation for conducting transactions with cryptocurrency.

Bitcoin price after its appearance

On May 22, 2010, the first purchase was made using bitcoins. An ordinary pizza was purchased for 10 thousand crypto coins. Back then, 10,000 BTC was equal to $25, which means that when Bitcoin came into being, it was worth less than one cent ($0.0025).

Three years later, in February 2013, the price of Bitcoin crossed the $31 line for the first time. After another 4 years, 1 BTC = $4500, that is, the price of Bitcoin has increased 145 times. Let's dream. Imagine being inspired by the idea of cryptocurrency and blockchain technology and realizing that Bitcoin is the future. In the same 2013, you sell an apartment worth 5 million rubles, and with all the proceeds you buy 5,040 BTC at the old rate of 32 rubles/$. Your fortune today would be valued at 1,411,290,323 rubles. That is, you could already buy not 1, but 280 apartments.

How did BTC come into being?

The first Bitcoin appeared at the end of 2008. In October of that year, all users of one of the popular resources at that time received a message from a user who introduced himself as Satoshi Nakamoto. The message described the essence of how Bitcoin works. Users were told that this new currency in the digital environment is 100 percent protected from fraudsters.

Significant moments in history

Bitcoin's history is rich interesting facts. The most memorable ones in chronological order:

On January 3, 2009, the first block was generated (it was called the genesis block), 50 BTC were mined;
On February 6, 2010, the first Bitcoin market exchange was opened;
September 14, 2010 first BTC mining in block 79,764;
November 6, 2010 BTC capitalization is $1,000,000;
January 2011 for the first time the power reached 10 Ghash/sec;
On March 6, 2011, the connection speed of the Bitcoin network jumped sharply to 900 Ghash/sec, after which it dropped to 500 Ghash/sec. Perhaps a supercomputer or network superbot was connected to the network. Everyone remembers this incident as the invasion of the “mysterious miner”;
April 16, 2011 – First official mention of Bitcoin in TIME magazine;
June 2, 2011 – the BTC to dollar rate was fixed at 31.91 USD per 1 bitcoin;
March 1, 2012 – the largest theft of bitcoins (about 50,000 BTC);
November 28, 2012 – after generating the 210,000 block, the reward for miners decreased from 50 BTC to 25 BTC;
March 28, 2013 Bitcoin capitalization is $1 billion.

Bitcoin Crash #1 (2011-2012)

From the moment they launched, Bitcoins appeared and quickly became popular, but this popularity was short-lived. The first problems appeared in 2011-2012. As you know, this was a period of jumps in exchange rates without material support. Later, these jumps became much more noticeable: for example, in a day the currency could fall by 2 times without any serious preconditions.

The problems that emerged became truly serious when hackers and hackers turned their attention to Bitcoin. Then users began to file numerous complaints that their electronic Bitcoin wallets had been debited cash. One of these complaints involved the loss of over 25 thousand BTC.

June 19, 2012 - the date was remembered in the history of Bitcoin for another major hack. The attacker managed to gain access to the MtGox service. The hacker managed to send out hundreds of thousands of fake bitcoins, causing the price to plummet from $17 to 1 cent. Thus, the attacker became the owner of about 2 thousand BTC.

Bitcoin Crash #2 (Spring 2013)

In the early spring of 2013, the price of one bitcoin reached $31, and by April 10 it was already over $260. From the very beginning of this boom, the media began to talk about the steady growth and strength of the cryptocurrency. This was the case until the price of Bitcoin dropped from $260 to $65 on April 16.

Sharp rise (November 2013)

After its sharp fall in April 2013, many thought it would take a few years for Bitcoin to recover to $266. However, Bitcoin growth was noted already in November. Then the digital currency exceeded the $300 mark and continued to grow.

Moreover, a few months before the next boom, the story of blocking a shady drug store flew by in the world media and created a lot of noise. It was about the Silk Road store, the owner of which was detained and the results of his activities were made public. It would seem, what does bitcoin have to do with it? The fact is that the Silk Road store worked on the Internet through Tor browser and accepted bitcoins as payment. It wasn't the best good example development of electronic cash, but he made a great contribution to the emergence of this currency.

Why Bitcoin is not just another pyramid scheme

Despite the high popularity of Bitcoin these days, not everyone believes that this project is not another pyramid scheme. Introduced just a few years ago, Bitcoin incredible story, reminiscent of the dot-com boom. However, there are several reasons why you can trust this technology:

high degree of protection (it is impossible to fake or generate Bitcoin wallet keys);
carrying out a transaction requires confirmation from other users (solving the cryptographic “two generals problem”);
Bitcoin mining is impossible without expensive equipment;
the volume of the market for goods and services that can be paid for with bitcoins is constantly growing;
any changes to the protocol of this currency system are possible only with the consent of 90 percent of users.

We have all heard that Bitcoin is called “electronic gold”, “gold coins”, and other allegories. But now these are no longer just beautiful words!

In March of this year, another historical fact was recorded - Bitcoin’s price became equal to real gold, reaching $1,238. Now, at the end of November 2017, the price for 1 BTC is as much as $8,200. The coin is growing at a breakneck pace.

Skeptics argue that this cryptocurrency is just a dummy, not backed by anything. Yes, that is right. But what is gold in its essence? People, come to your senses, it's just metal! He is also not provided with anything. Its value lies only in the fact that society has agreed among itself to consider it valuable. Everyone just believed it. It's the same with Bitcoin. As long as they believe in him, he has power.

Briefly what is the essence of Bitcoin?

Bitcoin (English Bitcoin, from bit - “bit” and coin - “coin”) is a digital currency that can be used to pay on the Internet. You can instantly send digital coins directly to anyone anywhere in the world (“peer-to-peer” - from peer to peer), and this does not require a bank or any other intermediary, which means there are no transfer fees exists!

This is the first and very significant plus - that is, you have already immediately saved up to 30% (comparing, for example, with expensive Western Union transfers) just because you do not pay the bank for its services.

So why is Bitcoin (“cue ball”, BTC) now at the peak of popularity? From the beginning of 2017 until today – November 2017, the most expensive cryptocurrency in the world has grown approximately 8 times. Its cost rose from $950 to more than $8,000 per unit. It’s not for nothing that this currency Lately so much attention is paid, because it has already become part of our everyday life, and it seems that forever.

Advantages of “digital gold”:

no commission for transfers;
transfer speed is instant;
the currency is international, can be sent and received in any country, it has no borders;
reliability - the currency cannot be counterfeited, the operation cannot be carried out dishonestly;
anonymity – the participants in the transaction know only each other’s account numbers, names are kept secret;
not subject to inflation;
is convenient virtual alternative real money.

The money we are used to is divided, as we know, into 100 parts, and one hundredth is a penny or a cent. Bitcoin can be divided up to 8 digits, which means that even one hundred millionth part can be used in circulation - that is, 0.00000001 BTC. This tiny particle is called after the creator of this currency. This is incredibly convenient, since you can even list minimum amounts with no commissions.

Another interesting fact inherent in the Bitcoin algorithm is that the total number of issued coins is 21 million. When this figure is reached, the program will stop issuing coins forever. Based on calculations, this will happen no later than 2140. Now the number of units produced has already exceeded half.

The reward that users receive for creating a new block becomes smaller over time. Until 2013, it was equal to 50 coins, later it decreased to 25, and now it is only 12.5 BTC. Thus, the excitement is growing, and earning the coveted coins is becoming more and more difficult.

Of course, Bitcoin is a pioneer in the world of cryptocurrencies, but today it has many competitors, such as , Dash, NEM, Monero, NEO, and hundreds of other digital currencies, the total number of which has already exceeded a thousand.

In 2008, someone under a pseudonym created electronic system payments and launched the Bitcoin network, and also released the first version of the wallet of the same name. The identity of this person is still unknown, and there are a lot of rumors about this on the Internet. There are speculations that he is American, or even that it could be a group of people. The lack of information on the Internet has become a source of humor; some have already begun jokingly calling him Santa Claus or even an alien.

But seriously, one thing is obvious - Satoshi Nakamoto is an incredibly rich man, and he no longer needs to support the system. According to his own statement in 2011, he decided to retire.

In 2010, an American from Florida named Laszlo, who became interested in new virtual coins, decided to have fun on a forum of like-minded people and, as a joke, promised his Bitcoins to anyone who ordered him pizza. And so the man was found, buying 2 pizzas in exchange for 10 thousand BTC (about $25). This became a historical event, because after a couple of months they already cost $600, and after six months - more than 2.5 thousand dollars. Now this amount corresponds to 80 million US dollars. This example very clearly demonstrates how fast growth is.

One of the sites informing about cryptocurrency rates even listed the cost of that pizza at the current rate as a separate item, as an illustrative example.

Bitcoin Followers

Roger Werr invested $1 million in Bitcoin in 2011, and after 2 years its value increased 100 times and amounted to $1 billion. Now he is a multimillionaire and is encouraging others to believe in this cryptocurrency. He is called the Jesus of Bitcoin, as his belief in the power of the currency is close to religious. There are many such people - millionaires, entrepreneurs, stockbrokers. The distribution of gold coins in the world is carried out not by a financial organization, but by a public organization - the Bitcoin Fundation, registered in the USA and one of the most influential. He also advises the legislative bodies of world powers.

“One day, 1 Bitcoin could be worth hundreds of thousands, maybe even a million dollars,” says Werr and encourages everyone to join the movement.

For many, the collapse of the MtGox exchange was a huge shock. The exchange operated in the USA, although it was officially registered in Japan. Thousands of people kept their Bitcoin savings on it, as it was the largest in the world (almost half of all BTC transactions were carried out through it), but in February 2014 its website became unavailable. According to the developers, due to an error found in the program, hackers stole more than 750 thousand BTC (at the exchange rate of that time, half a billion dollars). Then 127 thousand people went bankrupt.

But the vulnerability was found not in Bitcoins, which are almost impossible to counterfeit, but in the structure of the exchange itself. After the incident, there were rumors that the organizers themselves profited from the incident. Well, no money in the world is 100% insured against theft.

It is surprising that it is in the United States, against whose financial system Bitcoin is fighting, that this currency has become most widespread. Specialized exchanges appeared, and the installation of bitcoin terminals began, exchanging bitcoins for dollars and vice versa. Some are already even paid in BTC.

Many world-famous companies began to accept this cryptocurrency as payment for their goods or services provided, for example, Lamborghini, Microsoft, Skycraft Airlines, etc.

Also in some countries, Bitcoins can be used to rent or buy housing, buy air tickets, equipment, luxury goods, and even get an education. It is convenient to donate them to charity.

In Russia and throughout the countries former USSR For BTC you can make purchases on Amazon, Ebay, purchase applications on App Store, pay on various websites and online stores, and even get legal advice. With this cryptocurrency you can buy tickets to various entertainment events, for example, cinemas, theaters, concerts, etc. Some advanced shops and cafes, flower delivery services and even taxi services accept it. But of course, so far in our country these are all special cases and rather exceptions to the rules, which are implemented only by some organizations, following the fashion trend in order to stand out from their competitors. And about such widespread prevalence as in the USA, Japan and Western Europe there is no talk yet.

In many countries around the world, authorities do not treat cryptocurrency very well, since it is independent in nature. And this is inconvenient for power structures that are accustomed to keeping everything under their control. It is believed that such means of payment contribute to the shadow economy, and digital income cannot be recovered.

In Russia, the government discourages the use of cryptocurrencies, believing that it may facilitate money laundering and terrorist financing. But so far there is no law either allowing or directly prohibiting the circulation of Bitcoins.

The uncertain status of digital money in most countries of the world, which have not yet decided how to regulate their circulation, somewhat slows down investors, causing them to doubt. But despite this, people with the firm intention of getting Bitcoins cannot be stopped.

The anonymity of the system can play a cruel joke on society, as it provides ample opportunities for everyone indiscriminately, including the criminal world. There is a well-known example of the illegal online store Silk Road in the USA, which sells drugs and uses the anonymous Internet network Tor, which is not indexed in the Internet. search engines, and for payment the Bitcoin network. He sold psychotropic substances: LSD, marijuana, heroin, as well as pornography and other prohibited goods. The FBI seized his accounts, which contained about 30 thousand BTC, equal to 25 million dollars.

Another criminal project operated in the same way, which invited visitors to “chip in” money, and specifically Bitcoins, to order killers to kill various well-known political figures. Through this site, performers could accept an order and receive their reward for its execution, and the creators of this resource could receive a commission from this amount.

In addition to the well-known individual mining, where you rely only on yourself and your own equipment, there are 2 more ways to mine crypto:

Mining pools. Since it is very difficult to carry out successful mining alone, especially if you are a beginner, you can join together in interest groups, so-called pools. You can connect your PC to a data center (pool) and make sure that by working together, finding new blocks is much faster and more efficient, although the reward earned will have to be divided among all participants in the process.
Cloud mining. The idea is to increase the mining speed for a certain amount and for a certain period of time, in return receiving Bitcoins mined on cloud server. pros this method are that you do not need to control the process of mining crypto coins, or incur costs for the use of electricity and equipment.

Where can you buy Bitcoin:

large and small exchanges;
private online exchangers, usually offering small amounts with minimal interest;
ordinary users, acquaintances or strangers, met on the Internet;
special bots in messengers;
if you have your own website or online store, do you provide any paid services or you sell goods - you can start accepting payment for your activities also in cryptocurrency, indicating your bitcoin wallet or the QR code that was created there in promotional materials;
You can also win BTC coins in a casino, or place bets on various competitions, thereby increasing your capital.

It’s difficult to do, since the situation can change in the most dramatic way: today everyone is a fan of Bitcoin, and tomorrow they invented some more advanced, technologically advanced handy tool, and investors flocked there. Now there are so many bright minds of programmers, mathematicians and analysts working in this area that technological leaps are simply inevitable. But whether the next stage of development will benefit Bitcoin or not remains a mystery.

Predicting the growth of the exchange rate in the coming years, analysts are conditionally divided into 2 main camps:

Skeptics believe that the value of Bitcoin is artificially inflated to incredible limits, and this “ soap bubble“Sooner or later it will burst. They are also confident that the growth of the token will at least stop, and soon its value will begin to fall. Their main argument is that the authorities of most countries are against the legalization of cryptocurrencies. Another argument “against” is that if the crypto is stolen or lost, no one will compensate for your losses. Therefore, it is necessary to raise the question of increasing the security of electronic wallets.
Optimists who firmly believe that Bitcoin’s growth may have no limits, and fuel this belief among the entire population. They predict figures reaching up to 200 thousand dollars per 1 BTC, and consider this not fantasy, but a very real prospect that could come true in a dozen years. The main thing is that this crypt is not moved by competitors.

One can also highlight the position of realists, who are not so susceptible to general insanity, but also are not ossified conservatives in financial matters. More or less adequate forecasts indicate that the exchange rate at the beginning of 2018 will remain at around 10 thousand dollars. It is possible that it will not take off as rapidly as before, but sharp collapses in gold coins are not expected. Bitcoin's capitalization will be comparable to the strongest national currencies. And here a life-or-death struggle between traditional currencies and cryptocurrencies will begin, as world domination will be at stake.

Bitcoin- an electronic currency with a market capitalization of $9 billion, which exceeds the GDP of many countries. At the same time, only half of the btc coins have been mined, and the market value of 1 btc = $410 and will only grow upward!

According to analysts, the last Bitcoin will be mined by 2040, and the price of 1 unit could grow by more than 1,000%. And by this time, many countries will have official trading for btc.

The whole story about Bitcoin in 9 minutes

The currency was created by Satoshi Nakamoto in 2008, but it has been on sale online since 2009 at $0.2 - $0.5 per piece. And the people who bought bitcoins then became rich.

A notable example is student Christopher Koch, who decided to buy $27 worth of Bitcoin in 2009 for a university topic. But he only remembered them in 2013, when 1 bitcoin cost $1,000, and his investments rose in price to $886,000.

Now you can buy everything with bitcoins: food, things, cars, houses, university education, etc. In general, from pizza to space flight.

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Bitcoin price chart for all time

If you look closely, the currency has had a sudden rise, which is associated with the spread of Bitcoin around the world. However, after the $1,000 level, China banned the sale of Bitcoins, which led to a sharp drop in the price to $200.

But the most important thing is that the currency managed to double in price in 2015 and already costs $400, thanks to the fact that more and more more people people are interested in this + mining new bitcoins is becoming harder.

If you understand in detail what Bitcoin is, then it is a large and unique code in one block, which is not repeated, but at the same time is a continuation of the previous block of information found.

And for every extracted new block, the miner receives 25 BTC. Previously, mining was carried out using the power of a video card. Currently I use ASIC (high performance special computer for mining bitcoins).

If you now try to mine a block using Radeon video cards(the most productive of the CPUs) this may take about 5-7 years. Therefore, the equipment gets better and better every year. And in 2040 the last block with the code will be mined.

However, if you are interested in how to quickly earn bitcoins using mining, I recommend reading all the ways -.