About Bitcoin. What is cryptocurrency?

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The whole world is talking about a new generation of currency - bitcoin, which has become widespread on the Internet and the price is rising rapidly. In today’s article, we’ll talk about how bitcoins came to be and what their status is now. You can find a lot of information about bitcoin on the Internet in Russian and Uzbek, but we decided to explain it in the simplest language. We think you will learn a lot about bitcoin through our article.

You will soon receive answers to questions such as how to generate bitcoin, which bitcoin wallet to use, where to buy or sell bitcoin, and so on on our telegram channel.  Subscribe to Telegram channel

About Bitcoin - the birth of cryptocurrency

As the Internet developed, people began to pay "remotely." It is impossible to give money from hand to hand. It is therefore necessary to contact the intermediaries, i.e. electronic payment systems, bank or courier.

Any intermediary will be taxed for the transaction they perform because no one wants to work for free. The more money transferred, the greater the tax loss. As information technology has advanced, people have been thinking, how to do business while reducing costs and increasing FIC (efficiency ratio) by 100%?

There were a lot of offers, but all of them were rejected, and even after the removal of sales taxes, how to protect yourself from fraudsters - how to prove that you transferred or received the money?

The solution to this is 2009 Satoshi Nikamoto working as a result of mathematical calculations, was introduced when the new payment system was introduced to the public. The currency used to make the payment was bitcoins. They can be stored in special wallets and deposited and used in wallets.

To determine if money has gone or come from a bitcoin-wallet account, experts have offered to show everyone openly how many bitcoins have gone and come from one wallet or another address. That is, when you connect to a cryptocurrency network, you will be able to see all bitcoins traded. Also, all wallets are anonymous (it is not said who the owner is), so if your acquaintance doesn’t tell you which wallet is his, you will never know about it.

Because bitcoin needs to perform calculations on a regular basis, it needs powerful computers for the database to work. To get such power, you can connect thousands of computers to a single network and get the power you need. These computers are user computers. You can be one of them, of course, if you agree. If a user donates the power of his or her computer’s video card to support the bitcoin system, he or she will be rewarded in the same bitcoin currency for that support. This method of earning money is called "Mayning", we will talk about it later.

Advantages and disadvantages of Bitcoin

You’ve got an idea of ​​Bitcoin and its history above, now let’s talk about its advantages and disadvantages. It should also be noted that at present, due to the very high exchange rate of bitcoin, calculations are made on a small percentage of bitcoin, often "sold" in the foreclosure, the value of which is equal to 0.00000001 Bitcoins.

We will explain the advantages / disadvantages of cryptocurrency.

1. Limited. According to the algorithm created by the cryptocurrency, a total of up to 21 bitcoins can be found, after which cultivation will stop. No one knows what will happen as a result of this, if there is no financial explosion, the cryptocurrency will remain in circulation and will change the exchange rate at any time.
2. Complete privacy. Bitcoin-wallet numbers cannot be used to identify its owner, which leads to illegal money laundering and fraud.
3. Not provided. Cryptocurrency, like real money, is not backed by a constant reserve, and for other reasons, the bitcoin exchange rate can suddenly drop to zero completely.
4. The official does not work. Bitcoin can have a detrimental effect on the financial system, which is why many countries view cryptocurrency with skepticism. Russia has drafted a law to prosecute those involved in bitcoin cultivation, but it has not yet been enacted. Maybe bitcoins will never work officially, because if it is legalized, bitcoin could even replace real currency.
5. Not very popular. So far, many financial institutions, online stores and other services do not trust bitcoin and do not sell products in exchange for cryptocurrency. Bitcoin is not fully used due to its limited popularity.

Bitcoin has been appreciating since its inception. Bitcoin exchange rate today:

For now, it is difficult to say for sure whether the exchange rate will rise again: many May farms are closing because the cryptocurrency is not making as much profit as before. Also, the more people who are interested in growing bitcoin, the faster the rising exchange rate may fall.

Why Bitcoin?

Through this article, we have tried to explain to you in a simple way what bitcoin is, what it is worth living for, what its disadvantages and advantages are. If you are interested in this article, we will write in our next articles about determining bitcoin exchange rate changes, mining and other interesting topics - buying bitcoin, opening a bitcoin wallet, saving money in it, selling bitcoin from the tap and exchanging them for real money.

Where can you buy or sell Bitcoin and other cryptocurrencies?
There are many sites that provide such services right now. In recent years, there has been a proliferation of fraudsters who buy e-money. With that in mind, we’ve found the answer to the question of which of the sites that trade in e-money is trustworthy. Because no one needs too many problems. We ourselves also often buy our money in webmoney or qiwi through this site, which also has a Bitcoin section. We also offer you this site - uzpay.me