Things you should know to understand bitcoin

The supply of bit coins is limited and predictable and has a cap of 21 million virtual currencies. Today there are approximately 16 million.

Bitcoin is a decentralized digital currency that allows a new way to store value, transfer money and make payments.

The total bit coin market has a value of 27,000 million dollars. Mexico is the leader in Latin America in volume of transactions. 

The money, the fiat currency, is backed by the government. “All the coins, all the paper money was created under the premise that I am a country that has so much gold and then that amount of gold allows me to issue these notes that represent a piece of my gold, but that no longer exists more than 50 years ago.

Now most currencies in Europe only have between 4 and 5% of the bills that are circulating backed by gold.

Confidence generates supply and demand that marks the course in the price of bitcoins. The more people want it, the higher the demand and this allows the price to raise in the same way dollar-peso parity moves.

Unlike the dollar where the supply and demand is born by the fact that they can be used in that country, one of the most powerful in the world, that has value

These transactions are recorded in the block chain, a database that is stored in all those computers that are responsible for maintaining the network and is nothing but records of accounts that have certain balances, and these balances are the bitcoins.

How are bitconis created, as people started to have bitcoins?

The bitcoins began to circulate through mining. Mining is the process in which all these computers validate and verify transactions and include them in the network.