What is bitcoin?

The actual question is, "what is bitcoin ?" has two correct answers. On the one hand, bitcoin is a virtual cryptocurrency, the unit of account of an electronic non-cash payment system. Simply put, it is electronic money.

However, the bitcoin rate varies solely depending on supply and demand; its properties cannot be influenced from the outside. Bitcoin as a currency functions in the e-cash system of the same name.

What is Bitcoin as a system?

The Bitcoin system configures specific rules that provide an alternative exchange of virtual money between computer programs.

Eight reasons to join the Bitcoin system now

• It's fast

Money transfers between different banks take a relatively long time, especially when it comes to international transfers. Transactions with bitcoins take from 1 to 10 minutes, depending on whether the payer needs to wait to confirm the transaction.

• It is cheap

Almost all bank transfers charge a commission from the payer. And if the transferred amount is large, the commission can be very substantial. Operations with bitcoins imply a free transfer system, where the commission can be withdrawn from the user exclusively voluntarily to process his transaction out of turn.

• The central government will never take your money away

Remember what happened in Cyprus in March 2013? The central bank decided to charge large, uninsured deposits a 10% commission for its recapitalization, resulting in a total loss of over $ 100,000 to depositors. What suffered then not only Cypriots but also our compatriots, investors of the largest offshore in Ukraine.

This will never happen with Bitcoin. This currency is decentralized; it is not controlled by any banks, organizations, or authorities. The only owners of bitcoins are the participants in the system. So no one will take your money arbitrarily.

• Your personal information is safe

Bitcoin gives you the right to anonymity when making money transfers, while the system is open and safe. This question is especially relevant for those who want to make money on the Internet.

Imagine a vault with transparent glass safes. You can see the number of funds in each of them, thereby ensuring that the system is working correctly, but you will never know who owns one or another safe. No personal data, no leakage of transactions carried out into the database.

• Bitcoins out of inflation

If the units of account of such systems as WebMoney, QIWI, and Yandex. Money is tied to any national currencies, then the exchange rate and properties of the independent Bitcoin cryptocurrency cannot be influenced from the outside. Bitcoin prices are set based on supply and demand.

• No one will deceive your trust.

Have you ever wondered why such epithets as "stability," "reliability," "safety" are always present in advertising campaigns of banks? Marketing gimmicks like these are inherently absurd, as they are designed to inspire your trust. And the need to build trust already implies a particular risk. When transferring through the decentralized Bitcoin system, you do not need to trust anyone. An unknown entity will approve the application, and the recipient will not even know your name.

• You are 100% the owner of your account.

Your account will not be linked to any electronic payment system. This means that no one will be able, for one reason or another, to freeze your assets and, in any way, prevent your access to personal funds.

• You can make money yourself.

Whatever good printer you have, the prospect of printing your own money looks more than vague. Getting bitcoins literally out of thin air is quite real. This happens by resolving the combinatorial computational problems deduced by the program algorithm using special programs.

Bitcoin transfer operations are carried out through Bitcoin electronic wallets. Each transfer is open to all system participants and is accompanied by a digital signature for security purposes.

Bitcoins are a non-existent thing. You cannot name a single bill of paper, or even a file on your hard drive, bitcoin. All that the system's users operate on are the transaction records stored in the chain and the size of the balance.