Bitcoin: How to, How to determine its value, How to use it, What are its pros and cons?

In 2008, a computer programmer issued a report stating that an internet currency was needed that was not subject to the costs and permits of third-party agents. That’s why he created a digital currency where participants could deliver value to people with a Bitcoin address, just like sending an email. Oshi Just as the Internet has made global speech a standard, co says Satoshi Nakamoto, nicknamed computer scientist Nick Szabo, who is suspected to be a producer of Bitcoin.

How is it done?

Undoubtedly one of the strangest things about Bitcoin is that it continues to produce today. A new Bitcoin enters the data system approximately every ten minutes. “Miners kullanmak use the increased or allocated processing power to approve a number of transactions taking place in different parts of the world. They receive Bitcoin as a reward for these transactions. In the past, it was possible to carry out these operations with a single computer. Now, the process has become much more complex and requires very powerful hardware.

How is its value determined?

Nakamoto programmed the software of the Bitcoin currency in such a way that there could only be 21 million Bitcoins, which would be distributed slowly to the computers that would join the network. With limited supply, Bitcoin is not only an alternative way to send money, it is also in great demand. There are currently around 15 million Bitcoins in the market, whose total value can exceed $ 5 billion.

How to use?

To obtain Bitcoin, you first need to get a Bitcoin address (such as when people get an email address to send email). There are too many addresses in the market for this. Then either someone with Bitcoin should send Bitcoin to the address or be purchased from a site like Coinbase. When a Bitcoin is owned, a person is given a value and a cryptographic key. With the key, it is possible to transfer that value from the address to another. In this way, the security barrier is overcome.

What are the benefits?

First, it is used at an unprecedented speed. Money is transferred instantly and there are no barriers that can prevent it. In 2010, donors paid $ 32,000 with Bitcoin when Visa and PayPal decided not to enforce Wikileaks transactions to avoid disclosure of government documents deemed confidential. Secondly, because Bitcoin is made for the internet environment, it can make shopping a much better experience. Trading with credit cards is a thing of the past, and all financial transactions become faster and more efficient. Web-based companies can easily benefit from this. E All the advertising banners, spam e-mails, captchas that companies are currently using to monetize will disappear, Fred says Fred Ehrsam, CFO of the Bitcoin wallet, Coinbase.

What are the cons?

Bitcoin e-money is not easy to use. Even the disclosure to people exceeds 10 minutes. If the cryptographic keys fall into the hands of someone, whatever is in the palm of the hand can be stolen. All Bitcoins of persons who accidentally lose the hard drive and the keys required to enter the Bitcoin account can also go. People see them as “zombie money uygun and, according to an analysis, about a quarter (equivalent to more than a billion dollars loss) of all Bitcoins currently in circulation.

What prevents Bitcoin from spreading?

Banks don’t look hot on Bitcoin. It is thought that it may lose value at any moment because there is no government support behind it. Bitcoin will end if its cryptography is broken (NSA researchers are probably working on it). However, the biggest obstacle to Bitcoin is that it is still used and seen by criminal elements. Bitcoin flashed with Silk Road. Nowadays, it is the most important of the digital kidnappers who encode and encrypt the contents of others’ computers and threaten to delete this data if they are not paid with Bitcoin. According to the FBI, the victims of ransom pests last year paid around $ 18 million.

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