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Bitcoin - what is it and the whole essence of crypto currency



In today's article we will consider the most popular cryptographic payment system in the world and the unit of account - Bitcoin, which is the ancestor of all crypto-currencies. The popularity of this currency only grows with time, and at the same time its stock exchange rate also grows.

Let's take a closer look at what this electronic monster represents.

The name Bitcoin comes from two English words: bit is a bit, and coin is a coin. Bitcoin is a cryptographic payment system with P2P (peer-to-peer) technology, which does not have a central authority that emits new money and any control over transactions.

All transactions and issues (issue of new money) are made by the collective efforts of all network members.

Bitcoin also refers to the unit of account, as well as the data transfer protocol.

The smallest transmitted amount of crushing is called "satoshi" and amounts to 0.00000001 Bitcoin.

This value was named in honor of the creator Bitcoin - Satoshi Nakamoto (Satoshi Nakamoto).

The total output of new Bitcoins is limited and known in advance, is 21,000,000 (21 million). As of August 2017, 16,509,342 Bitcoins are in circulation.

Benefits of Bitcoin
Next, let's look at the undeniable and main advantages of Bitcoin's crypto currency.

1. Bitcoin crypto currency is easily transmitted through the network and does not need intermediaries.
2. The payment system is not afraid of inflation, which is the result of a clear control over the release of new Bitcoins.
3. Any transaction using Bitcooney is effected instantly, and the received currency can be used within a few minutes after the transaction.
4. In comparison with traditional payment systems, the cost of the transaction is almost free.
5. All transactions are irreversible.
6. Bitcoin is not subject to manipulation by third parties, banks, government or any organization. This is achieved through the collective use of open source code.
7. The amount of Bitcoin currency is set by the cryptographic protocol with the rules sewn into the code.

Standardization and variants of Bitcoin designation
Very often, instead of the full name "Bitcoin" use its abbreviated name - BTC (bi-ti-si). This designation reminds us of currency codes on stock exchanges, but it is not assigned to currency by the international standard ISO 4217.

It is worth noting that the designation BTC contradicts this standard, because according to it global goods are named starting with the Latin letter X, for example gold - XAU. As an alternative, the notation XBT for bitcoins is considered.

Currency Bitcoin has its own sign -, which is included in the standard Unicode 10.0 under the number U + 20BF. Sometimes, in practice, the symbol of Thai baht is used.

Let's now consider options for the use of currency in the Russian segment:

1. Bitcoin - in this version of the spelling is used on the official site from 12/09/2014. This option corresponds to the rules of Anglo-Russian transcription. Used in the mention of the Bank of Russia.

2. Bitcoin - this version of writing was used on the official website until 12.09.2014. This option corresponds to the rules of transliteration. It is used in Russian speech to this day.

3. Bitcoin - the original spelling in English.

History of Bitcoin
The history of Bitcoin originates in the not too distant 2008. It was then that a person or a whole team, under the pseudonym Satoshi Nakamoto (Satoshi Nakamoto), presented to the public a file describing the protocol and the very operation of the new payment system on the peer-to-peer network principle. The development of the program began in 2007, and in 2009 the ready-made code of the client program was published.

The first block was generated on January 3, 2009 and the first award was received - 50 bit-coins.

On January 12, 2009, the first transaction was made - Satoshi Nakamoto sent 10 bitcoins to Helu Fini.

In September 2009, the first exchange was made - Martin Malmi sent a NewLibertyStandart bitcoin to a user in the amount of 5050, for which he received $ 5.02 for PayPal.

In May 2010, the first currency exchange bitcoin was made for real goods - Laszlo Hanech from America bought two pizzas for 10,000 bitcoins !!

August 1, 2017 there was an important change in the structure of blocks in the chain of blockades. Developers together with the miners launched the so-called Bitcoin Fork (branch) - Bitcoin Cash, which will be discussed in a separate article. In the meantime - to the new vshch! Till!

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