What kind of currency do bitcoins exist? Advantages of official WebMoney exchangers

Not so long ago, in my next weekly report on my investments, I talked about it as a new promising investment instrument. In just the first week of trading Bitcoins, I earned more than $200 with a deposit of $800, i.e. 25% per week. For the sake of fairness, I note that I was a little lucky, because... I bought Bitcoin coins with a strong upward price trend (the price rose above $1000). After the publication of the report, questions like:

• What is Bitcoin?
• Is it too late to invest in Bitcoin?
• how to make money on bitcoins?
• where to get\buy bitcoins?
• how to buy bitcoins on and?

I promised to answer these and other questions detailed review, which you are reading now. So let's start with what exactly are bitcoins? This question was the most common among readers.

Bitcoin - what is it?

I've been running this blog for over 6 years. All this time, I regularly publish reports on the results of my investments. Now the public investment portfolio is more than 1,000,000 rubles.

Especially for readers, I developed the Lazy Investor Course, in which I showed step by step how to put your personal finances in order and effectively invest your savings in dozens of assets. I recommend that every reader complete at least the first week of training (it's free).

Literally, bitcoin is a “bit” unit of information, a “coin” coin. Essentially, Bitcoin (officially abbreviated as BTC) is an electronic payment system(currency) that does not have a single information center, so the system does not have a single owner. We can say that the cue balls belong to those who use them. By the way, most often in bitcoin network They are called cue balls.

The electronic cryptocurrency Bitcoin was created in 2009 (development began in 2007), by a programmer or team of programmers with the pseudonym Satoshi Nakamoto (apparently a Japanese name). In 2009, Satoshi published source systems and this event can be called the beginning of the electronic payment system.

At the moment, there are more than 10 electronic currencies with a similar operating mechanism, they are also called forks (answer). I will list the most promising forks in terms of earnings and investments:

• LiteCoin (currently the LTC rate fluctuates in the range of $25-40);
• Namecoin (now the NMC rate fluctuates in the range of $5-10);
• PPcoinn (currently the PPC rate fluctuates in the range of $3-5).

The cost and stability of rates of all existing cryptocurrencies directly depends on bitcoins, so in this article I will only talk about bitcoins.

Bitcoin for dummies

In order to fully understand what bitcoin is, I will list the main differences between bitcoins and conventional money:

• Bitcoins are not backed by anything

BTC are not debt obligations (like traditional money) and, in fact, are not backed by anything material. The price of bitcoins directly depends on supply and demand, i.e. How much do people need currency? A parallel can be drawn with gold, the price of which directly depends on demand. If at some point no one needs gold, then the price for it will collapse, however, to complete zero the price will not fall, because It’s still metal and you can make something out of it. If there is no demand, nothing can be made from Bitcoin, so its price could theoretically fall to zero.

• There is no single center

As I said above, all payment system data is stored in open source on the media of system users. There is no system regulator (such as the central bank) who could influence the price of the currency, the quantity of new units issued, and other factors.

• Limited amount of currency

The source code of the system is programmed in such a way that it is initially known maximum amount coins in the system (21 million coins). Not only the maximum quantity is programmed, but also the dynamics of the issue (the release of new coins), which is now 25 coins every 10 minutes. The coins are distributed among the so-called miners, which I will talk about a little later. Every 4 years, emissions are halved.

Thus, the payment system has a deflationary structure, which contributes to a constant increase in the price of the cue ball. This is what the Bitcoin emission growth graph looks like, according to which the emission will end in 2033, although it seems to me that this moment will come earlier.

If we assume that the governments of large countries will not ban Bitcoin, then based on the deflationary model, the rate will only increase. When the total number of coins reaches 21,000,000, coins can technically be divided to the eighth decimal place, so the end of the issue does not mean the end of the development of the payment system.

• No transaction fees

Since the system has no owner, there is no one to pay the commission for transfers between wallets. The system allows you to pay a voluntary commission to speed up transactions.

• Complete anonymity of bitcoins

Despite the fact that the system is open source and anyone can trace any transaction with btc, the wallet system is completely anonymous. Any user of the system can have an unlimited number of wallets on their computer, and they will have absolutely different numbers. You can only find out who the owner of a particular wallet is from the owner himself.

The wallet number is a long string of about 34 characters (letters and numbers). The wallet itself can be stored on a computer, portable media or in the online service.

The main disadvantages of bitcoins

• There is no single regulator

Since there is no single center, there is no way to cancel a transaction with bitcoins.

• Difficulty to use

For most people who are far from Internet technologies, the electronic system of bitcoins is too complex and confusing, this slows down the spread of bitcoins to the masses.

• Risk of becoming a banned currency

Now that all governments are striving for total control over their citizens, any anonymous money is doomed to be banned. Sooner or later, this will happen to Bitcoin as well. There is already a reason for closure; there are several stores on the Internet that openly sell weapons and drugs for bitcoins. After the ban on cue balls, the exchange rate will most likely drop significantly, but the development of the system will not stop there, the cue balls will simply go underground, where they will also be popular among users who value complete anonymity.

There are only two ways to make money on bitcoins:

• Earning money from bitcoin mining

Mining ( mining- mining) - extraction of the virtual currency Bitcoin using the computing power of a computer. This process is necessary to ensure the functioning of the network; it is the miners (virtual currency miners) who ensure the anonymity, security and efficiency of transactions in the bitcoin system. Earnings for miners are new coins in the system (25 coins every 10 minutes), which are distributed among the miners. Currently, calculations in the bitcoin system are so complex that using a regular computer for mining will only bring losses (electricity, depreciation, etc.). In order to unite computing power miners are united into pools, the profits of which are divided in proportion to the volume of calculations made.

Now it is most profitable to use for mining special devices ASICs that were created specifically for mining and can’t do anything else. As a person far from the anatomy of computer configurations, I will not go into details of this method of making money on bitcoins. Perhaps later I’ll write an article on mining.

• Making money trading bitcoins

This method can be divided into two: passive investing in bitcoins and active speculation on the exchange rate. The first method is to simply buy bitcoins and preserve them under the mattress, in the hope that in a couple of years they will cost tens of times more than now. By the way, I recently read an article by a leading analyst at Bank of Amerika, who conducted a study and claims that the price of bitcoin will only increase to at least $300 (currently the price for 1 BTC=$2500).

The second way to make money trading bitcoin involves active trading/speculating on the bitcoin exchange rate. For these purposes, you can use the eToro () service. The service is intuitive clear interface, you can set stop loss and take profit, copy successful managers trading cryptocurrencies. It is possible to try trading on a demo account without investments.

This option is very similar to trading currencies on Forex; by the way, you can even trade on the BTC-E.nz exchange using the MetaTrader 4 trading platform. Namely, earnings from trading Bitcoins are the most profitable for private investors, because does not require large investments. You can start investing with $100. Now let's figure out where you can get/buy bitcoins.

Where can I get bitcoins?

The answer to the question - Where to get bitcoins depends on which option for making money from trading you choose. For lazy investors who want to safely invest money in Bitcoin on long term The option with exchangers is suitable. First, you will need to create a wallet. IN Lately I constantly hear about bitcoin wallets being hacked, so I recommend storing your wallet only on an independent storage device, so you can protect your bitcoins as much as possible.

In order to create a wallet, you need to download the MultiBit client program to your computer from. Next, launch the MultiBit program and create a new wallet. You can buy bitcoins like regular money at exchangers. I recommend using only trusted exchangers, such as.

If you have experience in Forex trading and have free time, then you can try trading bitcoins on the btc-e.com exchange. I would like to warn you in advance about the potential possibility of an exchange scam. Legally, the activity of the exchange is not formalized in any way; in the contacts section there is no information at all, you can only send a request. So, I don’t recommend keeping a large amount of money on the stock exchange. And although the exchange is the largest in the Russian-speaking segment, it is better to withdraw your profit and buy real bitcoins with it in exchangers. In principle, you can withdraw bitcoins to your wallet from the exchange itself, but this cannot always be done, because The exchange's reserve of bitcoins is significantly limited.

Well, that’s probably all you need to know in order to start making money on bitcoins. If I missed something, ask in the comments. In the meantime, to consolidate the material, I recommend watching a rather interesting seminar on the bitcoin system.

Profit to everyone!

I am pleased that more and more people are showing interest in the biggest innovation in the financial world in recent years. last years- cryptocurrencies, including Bitcoin. Let's figure out what it is and why there is so much talk about them. And not only on social networks and forums, but also in central banks, parliamentary committees and governments of many countries around the world. It's very easy to join the community and start using new digital money.

Term "cryptocurrency"- a direct translation of the English "cryptocurrency", that is, a virtual currency protected by cryptography. First of all, cryptocurrency is fast and reliable system payments and money transfers, based on the latest technologies and not under the control of any government.

Bitcoin, Bitcoin, Bitcoin, BTC

Word "Bitcoin" formed in English language from "bit"- minimum unit of information and "coin"- coin. Following the rules of English-Russian transcription, this term should be translated into Russian as "Bitcoin". This spelling is used by the official website bitcoin.org, Bitcoin Wiki, Wikipedia, the Central Bank of the Russian Federation and other resources. Still a widespread option" Bitcoin" came from the first illiterate translation of the wallet interface based on direct transliteration. However, it is better to write this word correctly.
The most common abbreviation for Bitcoin is BTC- usually used in stock trading and financial items. Cyrillic abbreviation, BTK, did not take root in the community.

What is Bitcoin?

Bitcoin is the first cryptocurrency, the most famous of many other cryptocoins, the symbol and flagship of the cryptocurrency world, as well as the monetary unit of the same name that circulates within the system. Later in this article we will explain how cryptocurrency works, using Bitcoin as an example.

What is the most significant feature Bitcoin from an economic perspective? This is a digital commodity with a limited supply, its algorithm is designed in such a way that a maximum of 21 million coins can exist in the system - units, each of which is also called “bitcoin”. The emission schedule is determined programmatically and is known in advance. After the last coins are generated, their number will not change. Bitcoin's economy is built on a deflationary model, which has raised concerns among many economists. But they find no practical justification.

In fact, such a relatively small number of coins is quite enough for everyday payments, since 1 bitcoin is divided into 100,000,000 parts, which are called “satoshi”, in honor of the creator of the system. Sometimes the terms "millibitcoin" (mBTC, one thousandth) and "microbitcoin" (uBTC, one millionth) are used.

Bitcoin is a digital currency (cryptocurrency), which allows parties to exchange it for material assets, like paper money (fiat) and gold that preceded Bitcoin. Unlike previous means of exchange and accumulation, bitcoin is digital and decentralized. Now people can exchange material assets without intermediaries (states, banks), which allows for more full control over your funds and pay low transaction fees.

All over the world there is now talk about a new generation currency - bitcoins, the first information about which has appeared global network Internet in 2009. During this time, digital coins have demonstrated amazing volatility with a predominance of growth in their value. At the beginning of December 2016, the weekly timeframe of the Bitcoin chart looks like this:

Below we will talk about how bitcoins appeared, what they are and how they are used in currently, as well as where and how to exchange bitcoins for real money.

How Bitcoin came to be - the creation of cryptocurrency

To find out what Bitcoin is in detail, you can turn to the treasure trove of crypto folk wisdom online called bits.media. But I'll still try to talk about Bitcoin in simple terms and, I hope, in understandable words (that everyone understood).

So, with the development of the Internet, people had to make payments “at a distance”, which sometimes can be quite large, because financial relations often connect residents of different hemispheres of the planet. It is not possible to transfer funds directly: it is simply impossible to transfer money from hand to hand. Therefore, it is necessary to contact intermediaries - banks, electronic payment systems, payment transfer systems like Western Union, etc.

Any intermediary charges a considerable commission for the transaction performed, since no one wants to work “for nothing.” The greater the volume of transferred capital, the higher the level of commission losses. With the development of information entrepreneurship, people are thinking about how to avoid costs and do business in conditions of one hundred percent efficiency.

Many options for solving the problem were proposed, but all of them were rejected, because even if a commission-free payment platform is created, how to protect yourself from fraud and prove that you transferred a certain amount via specified address, or what received it?

Bitcoin began as a concept document published on October 31, 2008 by a mysterious person working under the pseudonym Satoshi Nakamoto. Who is the real developer, whether it is Satoshi’s individual or a group, is still unknown, despite numerous journalistic investigations. On January 3, 2009, the practical implementation of this concept began in program code. IN 18:45 GMT (22:45 Moscow time) 03.01.2009 The first block in the network, the so-called genesis block, was generated. This day is considered Bitcoin's birthday and is celebrated by communities around the world.

How is Bitcoin different from electronic and paper money?

Features of Bitcoin that distinguish it from other types of electronic and paper money:

Cryptocurrencies in life

Initially, bitcoins were in demand only among mathematicians, cryptographers, as well as people very passionate about computer and network technologies. Back then, bitcoins simply served as proof that unsecured electronic money was possible. Rather, they can be called an electronic analogue of gold - like gold, bitcoin is difficult to mine, its quantity is limited, and the labor intensity of mining only increases over time. In the fall of 2009, 1 BTC could already be bought for 0.8 cents. From then on, the history of stock trading began, in which there were many ups and downs, high-profile bankruptcies and successful projects. Transactions for Bitcoin were at first rare and sporadic. The first and most famous was the purchase of two pizzas for 10,000 BTC, which took place in May 2010 (at that time the equivalent of $25). Since then, the exchange rate has risen above $1000 and fallen back to $150, but that's another story...

Throughout 2016, the Bitcoin rate has been steadily growing. If at the beginning of the year 1 coin could be bought for $340-360, but at the beginning of December 2016 the Bitcoin exchange rate rose to $770 per 1 BTC. Even by simply investing part of the money at the beginning of the year in this high-risk asset, one could now get more than 120% profit.

In the early stages of Bitcoin's development, its popularity was created by the Japanese exchange MtGox and the illegal online market Silk Road. Now Bitcoin does not depend on one exchange or pool, and law enforcement officers have learned to deal with illegal activities in cryptocurrencies in the same way as with other economic crimes.

Today Bitcoin is a modern digital currency that is perfect for payments on the Internet. More and more stores are accepting Bitcoin as a payment option. The simplicity and convenience of opening a Bitcoin account is attracting more and more people from developing countries to this digital currency. In many countries in Asia and Africa, the Bitcoin network replaces what is difficult to access and expensive for people. banking services. In developed countries, POS terminals for paying with Bitcoin in stores, ATMs for cryptocurrencies, and hardware wallets for Bitcoin have become widespread. There has been a real boom in startups that use Bitcoin. It turned out that blockchain technology is suitable not only for financial calculations, but also for distributed storage of data about various assets. There are already several thousand other cryptocurrencies created on top of Bitcoin or from scratch.

A little about politics

The attitude of states towards cryptocurrencies is very different. There is both clear encouragement - in Australia, Germany, the Netherlands, New Zealand, Singapore, some US states, various offshores - and serious restrictions that can develop into prohibitive measures - these are Indonesia, China, Russia, Ukraine. Only ardent Latin Americans in Bolivia and Ecuador decided to implement direct bans.

Many governments have chosen the observation line with cautious optimism - most of the European Union, the UK and Switzerland, the US federal government, Canada, Japan and countries in Southeast Asia. In most developed countries, financial legislation is being adapted to regulate cryptocurrencies, and this issue will soon be resolved.

If you are reading this article, it’s easy to guess that you were brought here by your interest in the loudest innovation in the financial world in recent years - cryptocurrencies, and primarily Bitcoin. Let's figure out what Bitcoin is and why there is so much talk about it. And not only on social networks and forums, but also in central banks, special committees and governments of many countries around the world. Join the community and start using new digital money.

Term "cryptocurrency"- a direct translation of the English "cryptocurrency", that is, a virtual currency protected by cryptography. First of all, cryptocurrency is a fast and reliable system of payments and money transfers, based on the latest technologies and not controlled by any government.

Bitcoin, Bitcoin, Bitcoin, BTC

Word "Bitcoin" formed in English from "bit"– the minimum unit of information and "coin"- coin. Following the rules of English-Russian transcription, this term should be translated into Russian as "Bitcoin". This spelling is used by the official website bitcoin.org, Bitcoin Wiki, Wikipedia, the Central Bank of the Russian Federation and other resources. Still a widespread option" Bitcoin" originated from the first translation of the wallet interface based on direct transliteration.

The most common abbreviation for Bitcoin is BTC– usually used in stock trading and financial articles. Cyrillic abbreviation, BTK, did not take root in the community.

What is Bitcoin? This is the first and most famous of the symbol and flagship of the cryptocurrency world, as well as the monetary unit of the same name that circulates within the system. Later in this article we will explain how cryptocurrency works, using Bitcoin as an example.

What is the most significant feature of Bitcoin from an economic perspective? It is a digital commodity with a limited supply, its algorithm is designed in such a way that a maximum of 21 million units can exist in the system, each of which is also called “bitcoin”. The emission schedule is determined programmatically and is known in advance. After the last coins are generated, their number will not change. Bitcoin's economy is built on a deflationary model, which has raised concerns among many economists. But they find no practical justification.

In fact, such a relatively small number of coins is quite enough for everyday payments, since 1 bitcoin is divided into 100,000,000 parts, which are called “satoshi”, in honor of the creator of the system. Sometimes the terms "millibitcoin" (mBTC, one thousandth) and "microbitcoin" (uBTC, one millionth) are used.

Bitcoin emission schedule

Bitcoin began as a concept document published on October 31, 2008 by a mysterious person working under the pseudonym Satoshi Nakamoto. Who the real developer is, one person or a group, is still unknown, despite numerous journalistic investigations. On January 3, 2009, the practical implementation of this concept in program code began. IN 18:45 GMT (22:45 Moscow time) 03.01.2009 The first block in the network, the so-called genesis block, was generated. This day is considered Bitcoin's birthday and is celebrated by communities around the world.

What is the difference?

Features of Bitcoin that distinguish it from other types of electronic and paper money:

Bitcoin mining difficulty chart

Cryptocurrencies in life

Initially, bitcoins were in demand only among mathematicians, cryptographers, and people very passionate about computer and network technologies. Back then, bitcoins simply served as proof that unsecured electronic money was possible. Rather, they can be called an electronic analogue of gold - like gold, bitcoin is difficult to mine, its quantity is limited, and the complexity of mining only increases over time. In the fall of 2009, 1 BTC could already be bought for 0.8 cents. From then on, the history of stock trading began, in which there were many ups and downs, high-profile bankruptcies and successful projects. Transactions for Bitcoin were at first rare and sporadic. The first and most famous was the purchase, which took place in May 2010 (at that time the equivalent of $25). Since then, the exchange rate has risen above $1000 and fallen back to $150, but that's another story...

Early in Bitcoin's development, the illegal online marketplace Silk Road also created its popularity. Now Bitcoin does not depend on one exchange or pool, and law enforcement officers have learned to deal with illegal activities in cryptocurrencies in the same way as with other economic crimes.

Today Bitcoin is a modern digital currency that is perfect for payments on the Internet. More and more stores as one of the payment options. The simplicity and convenience of opening a Bitcoin account is attracting more and more people from developing countries to this digital currency. In many countries in Asia and Africa, the Bitcoin network is replacing people with difficult and expensive banking services. In developed countries, POS terminals for paying with Bitcoin in stores, ATMs for cryptocurrencies, and hardware wallets for Bitcoin have become widespread. There has been a real boom in startups that use Bitcoin. It turned out that blockchain technology is suitable not only for financial calculations, but also for distributed storage of data about various assets. There are already several thousand created on the basis of Bitcoin or from scratch.

A little about politics

The attitude of states towards cryptocurrencies is very different. There is both clear encouragement - in Japan, Australia, Germany, the Netherlands, New Zealand, Singapore, various offshores - and serious restrictions that can outgrow prohibitive measures - in Indonesia, China, Ukraine. Only ardent Latin Americans in Bolivia and Ecuador decided to implement direct bans.

Many governments have chosen the observation line with cautious optimism - most of the EU countries, the UK and Switzerland, the US federal government, Canada and countries in Southeast Asia. In most developed countries, financial legislation is being adapted to regulate cryptocurrencies, and this issue will soon be resolved.

Bitcoin - what is it?

Bitcoin is the world's first decentralized digital currency. This currency is fundamentally different from all previously created electronic currencies and payment systems. It is not tied to any physical assets or “official” currencies, and the price of the digital coin—Bitcoin—is governed solely by market supply and demand.

Bitcoin is also a worldwide payment system through which transactions with this currency can be carried out. Its main difference from traditional payment systems is that the Bitcoin system does not have any management or processing center - all operations take place exclusively in a network of peer clients.

Features of the Bitcoin system

• There is no concept of “registration”, anyone can participate in the network
• The wallet is not tied to the user’s identity, everyone can create an unlimited number of wallets and details
• Cheap, anonymous and unlimited money transfers around the world
• There are no intermediaries, digital money is sent directly between users
• It is impossible to block a transfer, freeze money in the user’s wallet, or “roll back” already completed transactions
• Bitcoins can be stored on your computer, on your smartphone, in an online wallet, on or
• There is no controlling organization, the price of Bitcoin is determined only by market supply and demand
• The release of bitcoins is strictly limited and predictable; it is impossible to “run the printing press” and create a lot of bitcoins

Thus, Bitcoin simultaneously has the properties of ordinary cash, electronic currencies, a money transfer system and “digital gold”.

How does Bitcoin work?

A series of articles on our portal explains various aspects Bitcoin technology without complex technical jargon as much as possible:

• Bitcoin Math: and

Also, for those who want to understand the technical aspects of the system thoroughly, we have published a translation of the original article by Satoshi Nakamoto.

Well, or you can understand the basic principles of the network by watching this video:

Or, understand in detail all the details of the Bitcoin protocol by spending 20 minutes viewing a more complete technical description network operation:

There are other educational videos on our YouTube channel, subscribe.

How to properly store bitcoins?

If you are already the proud owner of several coins, the question of their reliable and safe storage very relevant. In this series of articles, we will describe everything best practics Bitcoin security:

Which is correct: Bitcoin or Bitcoin?

From the point of view of the rules of the Russian language, it is more correct to write and speak exactly Bitcoin. The spelling “bitcoin”, which is sometimes found, is technical jargon, from the same opera as “point”, “ciska”, “Winda”, “user” and “hardware”. And that's why:

1. For those who are familiar with English “first-hand”: in the original it is the diphthong that sounds [ɔɪ] , that is, “oh” - “ bitcoin“, there is no mythical “Bitcoin” there.
2. Rules for transcribing foreign words in Russian. Worcester in Russian is Worcester, not “Worcester”, Southwell is Sazzle, not “Southwell”. The same rules apply to direct borrowings: action, not “action”, image, not “image”, etc.
3. Transliteration rules from Wikipedia: oi, oy, -oid [ɔɪ] oh, except for the suffix -oid point →point, android → android.
4. Transcription rules from English into Russian, according to the reference book by R.S. Gilyarevsky and B.A. Starostina: diphthong [ɔɪ] spelled "oh".
5. All similar borrowings from English into Russian, as well as the transcription of names/titles, use exactly “oh” - boiler, spoiler, joystick, pointer, West Point, Zoidberg.
6. Similar localizations in other languages ​​with Cyrillic writing (Mongolian, Bulgarian, Macedonian) all use “ bitcoin».
7. For those who still doubt, there is a test word “ bitcoiner". Bitcoiner, bitcoin economy, bitcoin are the same words, is it logical?

Among other things, the correct spelling Bitcoin Authoritative sources confirm:

Why, despite all this, do some, even quite literate people, still use the jargon “bitcoin”? The fact is that it was originally used in the Russian localization of the first Bitcoin client (Bitcoin-Qt). It is clear that it is difficult to demand deep knowledge in phonetics and linguistics from the early translators - geek enthusiasts who promoted the use of cryptocurrency at the very beginning of its journey (for which honor and praise should be given to them!) - well, they translated as best they could. And as a result, many early Bitcoiners got used to using this incorrect tracing paper because they saw it first. And from them, others learned how to spell incorrectly - as a result, this jargon is still quite common, although correct writing it is actively displacing it.

In print and electronic sources it is growing exponentially. Against this background, more and more people are becoming directly or indirectly familiar with this term. Bitcoin has long ceased to be a sphere of interest for “geeks”, but has become quite firmly established in life ordinary people. And sooner or later you will have to deal with Bitcoin directly. We invite you to prepare for this meeting and get to know Bitcoin better through this guide for beginners.

What is Bitcoin and why is it needed?

Bitcoin (abbreviated BTC) is an electronic payment system in which virtual “money” (bitcoins) circulates. Do you have plastic VISA cards or Mastercard? Both Visa and MasterCard are also electronic payment systems. However, they use the currencies we are familiar with - dollars, euros, hryvnia, rubles, and all transactions undergo bank processing. Such currencies are called fiat. The Bitcoin system uses cryptocurrency - a purely digital currency that is not tied to any world bank or the economy of any country. It has its own cost (rate), which is formed against the background of demand.

Key features of Bitcoin:

The entire system is decentralized. This means that Bitcoin is not regulated by any bank, agency or government entity. All network participants are absolutely equal, regardless of nationality or other characteristics. For example, Visa and Mastercard have Gold, Platinum, Vip cards, systems like Webmoney or QIWI have user levels. There are restrictions on the size of transactions. And in Bitcoin, everyone is equal and there are no limits.

Pseudoanonymity. When transferring to BTC, participants do not reveal their identity. For transactions, an address (a hash of 27-34 characters) is used without disclosing other data about the recipient and sender. Remember transfers between cards or other electronic systems. Transactions often reveal the name of a person or the name of an organization.

Irreversibility. All operations in Bitcoin are irreversible. They cannot be canceled, stopped or blocked. Theoretically, a complete rollback of the system (blockchain) is possible. In practice, this is extremely difficult to implement.

Safety. Hack Bitcoin wallet impossible. All data is stored in special file, which only you have access to. It is also unrealistic to “intercept” data during a transaction, as happens in the banking system. Bitcoin uses cryptographic records - encrypted data that guarantees confidentiality and security.

• Direct nature of operations. IN Bitcoin transfers are held directly between participants - the P2P (peer to peer) principle is used. The transaction occurs without the participation of a third party: bank, processing center, server. Therefore, no one except its participants can track a Bitcoin transaction.

History of Bitcoin creation

The history of the creation of cryptocurrencies does not have a clear chronology. For decades, experts in the field of cryptography have been working to create a unique decentralized system, the work of which is based on mathematical calculations. Using the experience of their predecessors and their own developments, Hal Finney and Hal Finney created the world’s first cryptocurrency in 2008 – Bitcoin. Nakamoto received the main fame - he published a file with the Bitcoin protocol and briefly described the features of the new payment system. The smallest one is named after him fraction coins – 0, 000 000 01 BTC.

Why was Bitcoin created? Part of the reasons for developments in the field of cryptocurrencies reveal their features: anonymity, decentralization, security, and general availability. Ideally, the Bitcoin ecosystem should guarantee fast transactions without the participation of a third party (bank, cash desk) with high level security.

An interesting point of view was expressed by the famous Russian entrepreneur Sergei Mavrodi back in 2013:

“All this hype about cryptocurrencies is due to their anonymity. People are tired of Big Brother watching their every move. Everyone is tired of this. And Bitcoin in this regard is a breath of fresh air.”

This quote answers the question why bitcoins are needed. Transaction privacy is the most important feature of cryptocurrencies.

How Bitcoin works

The entire Bitcoin ecosystem rests on . To put it complicatedly, blockchain is a continuous chain of blocks of all transactions. The block is closed after selection digital signature. After this, a new block can be formed. Now let's decipher this in simple words. Imagine that each transfer (transaction) in Bitcoin is recorded on a separate page. The sequence of pages forms a chapter of the book - a block.

To record new page(conduct a new transaction), we need to “turn over” all past pages and chapters. That is, each new transaction is carried out along the chain - with the processing of old blocks (turning pages and chapters). A new chapter of a book can only be started after the old one is finished. And all the chapters form a book, and the blocks form a blockchain. Pages and chapters cannot be torn out or altered. And access to the blockchain is open to all participants in the system.
That is, a blockchain is a large open database that stores encrypted information about all completed transactions.

Blockchain and its potential are one of the reasons for the constant growth of Bitcoin’s exchange rate relative to fiat currencies and key feature BTC. Here are some other differences between “virtual” Bitcoin and regular money:

Form. Bitcoin – electronic currency, having no material appearance. There are physical “coins” with a QR code or coin-shaped drives that store BTC. However, they cannot be called money in the truest sense of the word. We can say that Bitcoin is a set of numbers generated by an algorithm. Not a paper note or a metal coin.

Price. The exchange rate of a fiat currency directly depends on the economic and political development of the country or confederation to which it is attached. In fact, the money of more than 100 countries around the world is tightly tied to the dollar. The price of Bitcoin is determined by demand and does not directly depend on economic processes (although it is indirectly related).

Emission. Theoretically, ordinary money has no emission ceiling. You can print as many of them as you like. BTC has its own ceiling built into the system - 21,000,000 coins (20,999,999, 9769). According to forecasts, this figure will be reached in the middle of the 22nd century.

• Direct transfers. Even we're talking about about the electronic version of ordinary money (card, wallet), then the transactions are carried out with the participation of a third party. In Bitcoin, the transaction is carried out directly (P2P).

Objectively valuing BTC is not that easy. Selected features Bitcoin can be attributed to both its advantages and its disadvantages. Let's take such a characteristic as the irreversibility of operations. On the one hand, you will receive cryptocurrency in any case - no system failure will not block the transaction. On the other hand, this feature of Bitcoin is exploited by scammers or representatives of the “black” market.

The main advantages include:

Anonymity - the other participant in the transaction will only know your Bitcoin address or QR code. Other data is not disclosed.

The decentralized nature of the system - all network participants are equal and independent.

Security – hacking of wallets, data substitution, interception of transfers is impossible.

Globality - Bitcoin allows you to quickly carry out transactions between people with different countries, time zones.

• Mining – exists independent method BTC mining, considered by many as a means of earning money.

Often the advantages of Bitcoin include the speed of transactions. It's not that simple. The transaction can last 10-20 minutes, and sometimes an hour. To complete it, you need 6 confirmations from other participants. They happen automatically. At high load network transfers are slowing down. Another disadvantage is the regulatory activities of the authorities of different countries in relation to cryptocurrencies. Formally, BTC creates the same conditions for all potential network participants. However, in some countries (Vietnam, India, Ecuador, and partly China) bans have been issued.

Other cons:

Unstable exchange rate - because of this, the potential of BTC as a payment option decreases;

• Fraud – Bitcoin itself is very secure. However, inexperienced people can fall for scams: fake exchangers, fraudulent investment projects, viruses.

Where to get Bitcoin

Bitcoin, like any other cryptocurrency, is mined through the use of the hardware power of computers, or rather processors and video cards. This process is called. If in 2009-2010 could be used to mine bitcoins regular computer, then now this requires powerful installations - . These farms combine dozens and sometimes hundreds of video cards or special processors ASIC type. This equipment costs thousands of dollars and requires additional care and technical skills. This method of receiving BTC is not suitable for beginners. Firstly, there are a lot of costs involved. Secondly, there are too many nuances. And in some countries, mining is completely prohibited. There are other ways to acquire Bitcoin:

Exchangers. There are services online that exchange fiat currency for cryptocurrency. In the vastness of the RuNet, the AlfaCashier resource enjoys great authority. An absolutely safe and proven service offering cryptocurrency exchange services.

Cryptocurrency exchanges. Resources where cryptocurrency trading is conducted. Largest exchanges: , . Bitcoin rates on different sites may vary.

Bitcoin faucets. These are services that distribute cryptocurrency to visitors for free. To get a small amount of BTC, just fill out a captcha or do some other small thing. There are hundreds of them on the web. Read more about how to get started with Bitcoin faucets.

Trading platforms. You can also sell goods for Bitcoin. Where? Yes, at least on Amazon or Ebay. There is a specialized site in this area - Purse.io.

• Self-service terminals. You can also receive BTC through regular terminals. There are also specialized Bitcoin ATMs - they have a better exchange rate and more modern technology. So far they have not received wide distribution in the CIS.

Read more about how to buy Bitcoin in our large.

How to use Bitcoin

Okay, we know what Bitcoin is and how to get it. Now it remains to get acquainted with the storage tools for this cryptocurrency. These are wallets. Hardware wallets are the most secure as they store your private keys in safety, that is, offline and without access to the Internet. The most popular and accessible device is a wallet. It allows you to store Bitcoin and 1000 other different types of cryptocurrencies and tokens.

In order to start using Bitcoin, you just need to set up and top up your wallet in accordance with the instructions.

What can you buy with Bitcoin?

Bitcoin is a payment system. Accordingly, purchases are made with its help. In the early years of cryptocurrency, all transactions were conducted unofficially. Buyers and sellers communicated in chats (mIRC, Miranda), in social networks, on the forums. It was on the forum that the most famous purchase of goods for Bitcoin took place. It is considered the first purchase of anything using cryptocurrency.

On May 18, 2010, a user with the nickname laszlo created a topic on the BitcoinTalk forum with the title “Pizza for bitcoins?” (Pizza for bitcoins?). In it, he asked who could order him two pizzas for 10,000 BTC. At the time it was the equivalent of 30 dollars. An English user agreed to the offer and ordered laszlo pizza. This is how the first and most famous purchase using BTC was made.

Not much time has passed since then, and BTC as a payment option has developed to a global scale. In the summer of 2017, it became known that 260,000 retail stores in Japan would begin accepting BTC. This important step towards the globalization of BTC payments. Read where to spend bitcoins in the world.

Every month there is news that a coffee shop, bar or restaurant is opening somewhere in the world that supports payments in cryptocurrencies. In some countries, taxi drivers use Bitcoin. The Coinmap allows you to find stores and services that accept Bitcoin near you. To understand the payment capabilities of Bitcoin, we have compiled a table of popular companies that support the cryptocurrency.

Dell	Computer technology, IT	USA
AppStore	IT	USA
Microsoft	IT	USA
Expedia	Tourism (booking accommodation and air tickets)	USA
Amazon	Trade	USA
Ebay	Trade	USA
Sacramento Kings	Sport	USA
Wikipedia	Internet	USA
RE/MAX	Real estate	Great Britain
Victoria's Secret	Cloth	USA
Tesla	Auto	USA
Reddit	Internet	USA
Valve/Steam	Internet	USA
T-mobile Poland	Connection	Poland
Naughty America	Adult	USA
Subway	Nutrition	USA

BTC is suitable for buying food, a car, an apartment, booking a plane ticket or booking hotels. Moreover, some universities accept tuition payments in Bitcoin. In the US, supporters of the Republican Party can donate money for its development in BTC. Cryptocurrency has even reached outer space. It is used by Virgin Galactic, a company working in the field of space tourism.