The Bitcoin is a digital currency transactions and payments allows people anywhere in the world. This coin was created in 2009 by Satoshi Nakamoto, a name pseudonym, and currently is being used to carry out various transactions such as renting cars in Argentina or apartments in New York.
The currency is virtual, meaning that physically does not exist, only it exists on a computer. Although this is not very distant from reality since a large volume of transactions today are digital, which does not involve physical money.
Bitcoin uses a P2P technology to operate with no central authority, ie, the currency is not controlled by any government or central bank, since the issuance and management of transactions are made collectively by the network.
The coins are issued or generated under an algorithm until the total amount reaches to be 21 million, and once reached that figure will not be issued more bitcoins.
Sending bitcoins is instantaneous and any operation can be monitored in real time.
First you have to download a software to your computer or mobile phone to act as a virtual wallet. This will generate a bitcoin address, which you can use to send and receive money from other users.
You can also create other addresses according to your needs and do not need to provide your name, address, identification number or other personal information. Nor need anyone’s approval.
Any transaction involves a transfer of value between two bitcoin addresses, and while it is true that the transactions are public, while these are anonymous because transactions are made with directions, which are the same alphanumeric character.
The transactions are secured using a series of public keys cryptography because each account has a public key and one private. Your wallet recognizes private key that allows you to send money, and to do that you need to know the public key of the person receiving.
• Limited offer: will never be more than 21 million units, therefore there will come a time when the supply is limited. Now, as they are produced are randomly to those who contribute computing power to ensure network delivered. This is known as “bitcoin mining”.
• Security: It is theoretically impossible to counterfeit, since their issuance is based on a mathematical algorithm. But you should keep the coins in a safe place, because otherwise you can lose, and so it is recommended to keep a backup on a USB. For example, if you keep your bitcoins on your mobile phone and it is lost, the money is also lost.
• Volatility: They will always have a market price will depend on supply and demand as any other currency. Also, the price or price of bitcoin can rise and fall in a very short period of time and therefore is considered as a high-risk currency. Therefore, this currency is subject to market volatility.
• Eliminate intermediaries: Replaces the functions of banks, systems and payment processors, and shippers. All these functions of creation, storage, accounting and money transfers can be executed with bitcoins.
There are two ways to get bitcoins
– Selling goods and services and accepting bitcoins as payment.
– When buying these currencies on sites like MtGox.com or BitStamp.net.
Because of the novelty of the system and lack of a regulator, it is necessary to act with due caution before buying or start making transactions with this currency.