What is Bitcoin?

Bitcoin is a virtual cryptocurrency. Assuming its creator, Satoshi Nakamoto, it was supposed to be an electronic peer to peer payment system. A system that controls itself through cryptography. This is possible due to the technology of the distributed database, the so-called block chain. The whole bitcoin chain, or the accounting book, is in many places at the same time – in the so-called miners. Miners mainly approve all transactions that take place and in return are rewarded with new bitcoins.

Bitcoin exists thanks to the community that controls itself. For the completed transactions to be approved in the form of a new block, the state must approve more than 51% of miners connected to the system. The entire bitcoin history is public and available on blockchain.info

It is not true that block chain is completely anonymous. There are companies that specialize in the analysis of the block chain and can locate the owners of particular portfolios with great efficiency. Nor is it true that you pay no commission for paying bitcoin. According to statistics, the commission for the transaction is currently not small and amounts to about 1.2%. Approvers for the transaction charge commissions for their activity, and its size – determined by those who make transactions – often determines how quickly our transaction will be approved.

Bitcoin is in a sense the victim of its own success. Due to the geometrically growing number of system participants, the idea behind Satoshi Nakamoto, which was the electronic payment system, is not fully met. Bitcoinami is not very worth paying. This crypto currency evolved somewhat towards the digital gold statute. A large community has been formed that believes in a continuous increase in its value.