Bitcoin and cryptocurrencies are all the rage. We explain what this virtual currency is, how it works and where it can be bought and sold. Virtual currencies arise as an alternative to traditional fiat currencies and have their greatest exponent in bitcoin. The cryptocurrency has become one of the best long-term investments (full of risks, yes). Someone who had invested 1,000 euros in 2010 today would be a millionaire.
What is Bitcoin
Bitcoin is an independent and intangible virtual currency. What differentiates this cryptocurrency from a currency to use such as dollars or euros is that it does not belong to any State. In other words, it is a decentralized currency, since there is no central bank, government or financial institution or company acting on it.
In the case of the euro, the Central Bank can intervene to affect the price through massive issuance of money or through interest rates. This is not possible with bitcoin. Moreover, its creators have already set a limit for the number of bitcoins in circulation. They will reach 21 million in 2030 and there will be no more.
The control rests with the Bitcoin users. It is these who validate any operation through point-to-point exchanges P2P, without state intervention or from any institution. In fact, the structure itself makes it impossible to manipulate its value. To make any changes it is necessary for the entire user community to approve it.
Why Invest in Bitcoin
Bitcoin is the first electronic currency that managed to be implemented with some solvency, but not the first to appear. What differentiates bitcoin from other attempts is its blockchain or blockchain technology – later we will explain better what it is.
Two months later, in October, the first document explaining the design of the virtual currency is published and in January 2009 the bitcoin network is officially born with the publication of the first open source of a client. It is at that moment when the first block of Bitcoins is mined with 50 prize bitcoins and the first shipment of this currency is made – later we will explain what bitcoin mining consists of.
In October 2009, the first transaction in dollars is made with a price of 1,309.03 BTC (Bitcoin) for one dollar.
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Bitcoin as a means of Payment
The first changes of Bitcoins for dollars are already made in 2010 at a price of 1 BTC for $ 0.003. Also in 2010 Mt Gox is created, one of the largest bitcoin broker that would later be famous for starring in the biggest scam with this virtual currency.
In May 2010 the first purchase in bitcoins takes place . Specifically, 10,000 BTC was paid for two pizzas. We can say that it is the most expensive pizzas in history. At the current price, we are talking about 30 million dollars for two pizzas.
In 2011 other cryptocurrencies begin to emerge and the growth of Bitcoin continues until 2013, when it receives a new push and its price reaches $ 3,000.
It is not until 2015 when you start to legislate bitcoin as a payment method – remember that this is its main function. That year the EU exempts VAT from operations with this virtual currency, while advancing technology that allows mining and getting bitcoins faster. In addition, it raises it to the range of payment method.
Why Bitcoin Investment is Popular
Bitcoin was created by Satoshi Nakamoto. It is a pseudonym, so it is not known whether it is a person or a group of people. Satoshi Nakamoto is the name that appears as the creator of the bitcoin protocol, who mines the first bitcoin block and makes the first transaction to Hal Finney.
This user made his last public contribution to the development of electronic currency in 2010. Until 2016 Gravin Andresen was the most visible bitcoin figure. However, the real Bitcoin boom does not come until 2017. It is at the beginning of the year when it exceeds $ 2,000 and even $ 3,000 per BTC. The reason according to experts is that the BTC would cease to have value as a means of payment and begin to have it as a financial asset, something similar to what happens when investing in gold
Throughout 2017 the value of bitcoin has reached more than 20,000 euros, marking a milestone.
Added to this is the fact that the 16 million mined bitcoin units have already been exceeded, which brings us closer to the maximum threshold of 21 million bitcoins that will be created.
In fact, its production and value is based on the law of supply and demand. Another interesting detail is that Bitcoin has a fixed limit of 21 million coins, which will be reached in 2030.
Who controls Bitcoin Investment
Even if Bitcoin has developers that act as a spearhead, nobody controls the virtual currency as nobody can control the development of email in the sense that it does not have a single owner.
Programmers can improve Bitcoin software, but they cannot impose a change in the protocol. This should follow the same rules for everyone and they are created in consensus among all users with their decisions on which platforms they choose to operate, for example.
In fact, when discrepancies arise over bitcoin, they are resolved among the entire community. For now there has been only one occasion in which no consensus was reached and resulted in the creation of Bitcoin Cash , a new fork in technical language. For the public on foot it would be a new separate version of the base cryptocurrency with which it shares the same block history until separation.
From there, the ‘control’ of the transactions is done through the users themselves , who are the ones that validate the blocks of the chain and the security of the transaction. Since this chain cannot be altered because it is present in thousands of computers around the world and that everyone must approve every change the real control that of bitcoin users.
Bitcoin investment is completely safe, and you don’t need much experience to invest or trade bitcoin. You can easily buy bitcoin from any bitcoin exchange or digital currency trading platform that sell bitcoin.
Being a safe and secure modern day investment options, you can invest any amount of bitcoin. Whether you already have bitcoin or you are a first time investor, you can easily buy bitcoin from any cryptocurrency exchange using any convenient option, including your credit or debit card and bank transfer.
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