What is Bitcoin?

What is Bitcoin? O Bitcoin is nothing more than a fully digital currency. More specifically, it is a cryptocurrency decentralized or a electronic money for peer-to-peer transactions (in English, peer-to-peer electronic cash system).

It was introduced in 2008 on The Cryptography Mailing discussion group by a programmer under the pseudonym Satoshi Nakamoto.

It is considered the world's first decentralized digital currency and it exists only in the virtual environment, different from the dollar or the real. Therefore, it is perfect for online transactions.

How does Bitcoin work?

The basis of the Bitcoin system is the cryptography. Thus, all transactions are made anonymously and securely. Bitcoin allows financial transactions without intermediaries, not requiring third parties to function. That means you don't need banks or big corporations to function.

They are stored in digital wallets

, which can be stored on your computer or cell phone. In addition, they work through a unique and complex code that cannot be changed in isolation.

Transactions are protected by encryption, making it virtually impossible to intercept.

When a transaction is performed, a code is generated. With this, the generated code is verified by the calls miners, which will validate the transaction and connect the digital wallets involved in the process.

Transactions are seen by everyone on the network, but without appearing names, as they are all anonymous transactions and are recorded in a database called Blockchain.

Miners who secured transactions earn rewards with Bitcoins or coin shards.

At the end of the transaction, the person who received the payment can exchange them for cash at specific Bitcoin exchanges.

Who Controls Bitcoin?

There is no way that a single person, company or government can control Bitcoin. Not even the creator of the cryptocurrency can control how it works.

Who can have control are all users, where decisions are taken by consensus of a simple majority. That is, users check the transparency of transactions and whether the same currency has not been used more than once.

What are the advantages of Bitcoin?

To the currency advantages begin with the fact that they cannot be confiscated. Furthermore, there is no single point of failure and in all the years of operation, the protocol has never stopped working.

In this way, the system is completely secure and the security level is higher than that of traditional banks.

The system works in a transparent way, in which everyone in the network can verify the integrity of the system. In the system, there is also freedom of payment and transfer, with lower fees, there is security, privacy, control and transparency.

Bitcoin also works in Brazil, however, you must declare all your earnings in the Income Tax.

See too: What is a cryptocurrency and how does this system work?