BITCOIN BLOG
Bitcoin is a payment system and a digital asset. It was invented by Satoshi Nakamoto who published his invention in 2008 and released it as an open-source software in 2009. The system is peer-to-peer and transactions are between users directly, without intermediaries. Since the system works without a central repository or single administrator, some authorities including the U.S. Treasury categorize bitcoin as a decentralized virtual currency. The transactions are accounted by network nodes and recorded in the block chain, which is a kind of public distributed ledger. Even though prior alike systems existed, Bitcoin is often considered the first crypto-currency. However, It is more correctly to describe it as the first decentralized digital currency. Furthermore, in terms of total market value Bitcoin is currently the largest of its kind.
How bitcoin infrastructure is maintained?
Can you profit maintaining bitcoin infrastructure? Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. This activity is called mining and miners are rewarded with transaction fees and newly created bitcoins. Despite being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. When sending bitcoins, users can pay an optional transaction fee to the miners.
Who uses bitcoin and why ?
During 2015, the number of traders accepting bitcoin for products and services passed 100000. Traders accepting bitcoins often pay fees in the range of 0% to 2%, instead of the 2 or 3% typically charged by a credit card processor. Despite the quadruple increase in the number of traders accepting bitcoin in 2014, the crypto-currency did not have much momentum in retail transactions. Mitsubishi Tokyo-UFJ, one of the most important banks in Japan is planning to release a new digital currency for transactions, shoppings and exchange, this new digital currency will be a new competitor. Authorities such as The European Banking Authority have warned that bitcoin users are unprotected by refund rights or chargebacks. The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and media. Criminal activities are primarily centered around illegal markets and theft, though officials in countries such as the United States also admit that bitcoin can provide legitimate financial transactions.
Bitcoin technology is improving its controls, and offering an alternative paymet system with minimal commissions, this is why it might be a good investment in the near furute. The price of bitcoins might be increasing if it turns into a secure, legit and less costly technology.
How bitcoin infrastructure is maintained?
Can you profit maintaining bitcoin infrastructure? Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. This activity is called mining and miners are rewarded with transaction fees and newly created bitcoins. Despite being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. When sending bitcoins, users can pay an optional transaction fee to the miners.
Who uses bitcoin and why ?
During 2015, the number of traders accepting bitcoin for products and services passed 100000. Traders accepting bitcoins often pay fees in the range of 0% to 2%, instead of the 2 or 3% typically charged by a credit card processor. Despite the quadruple increase in the number of traders accepting bitcoin in 2014, the crypto-currency did not have much momentum in retail transactions. Mitsubishi Tokyo-UFJ, one of the most important banks in Japan is planning to release a new digital currency for transactions, shoppings and exchange, this new digital currency will be a new competitor. Authorities such as The European Banking Authority have warned that bitcoin users are unprotected by refund rights or chargebacks. The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and media. Criminal activities are primarily centered around illegal markets and theft, though officials in countries such as the United States also admit that bitcoin can provide legitimate financial transactions.
Bitcoin technology is improving its controls, and offering an alternative paymet system with minimal commissions, this is why it might be a good investment in the near furute. The price of bitcoins might be increasing if it turns into a secure, legit and less costly technology.