What is cryptocurrency for in simple words and what do you need to know about it? Where and how to store cryptocurrency? What is Bitcoin mining

Hello, dear readers of the blog site. The topic of today’s article is cryptocurrency, which has been attracting public attention for several years. Below we will talk about its essence, production, and get acquainted with the technology, exchanges and calculators.

In general, cryptocurrency is a recent phenomenon (it all started in 2009), but now it has already very firmly gained the interest of the “advanced part of humanity.” Why? Well, there are many reasons. For example, how do you like the fact that such a payment system generally No and it can't be owner and even an administrator (the system is self-governing).

There are also no or very low commissions for transfers, again due to the absence of the owner, who needs to unfasten it in his pocket. In addition, most crypto-systems are anonymous, which also attracts certain segments of society.

And, of course, a very significant magnet is opportunity to make money from all this, and not only . There is also one - here they pay for the provision of computing power (for example, their own PC or a specially assembled computer system) for the extraction of monetary units and (transfers).

But first things first. Today we will talk about what cryptocurrency is in general (I will try to explain in simple words, understandable to everyone), how it appeared and how it can be used today, what is its current exchange rate, what is needed for mining, and where to find the most accurate exchange rate calculator?

What is cryptocurrency and why is it needed?

Bitcoin (BTC)- the most popular monetary system now based on blockchain technology (we say crypto-currency, but we mean Bitcoin). Actually, it all started with her in 2009. Now Bitcoin has already gone beyond the scope of a startup and is accepted in many places as a means of payment (its real capitalization has approached $20 billion - this is no longer a bubble from scratch). Its exchange rate to the dollar is now very high, and those who bought Bitcoin at least a few years ago made a lot of money on it (see the screenshot at the beginning of the article with a graph of rate growth).
Bitcoin Cash (BCC)— separated from the main branch of the Bitcoin blockchain on August 1, 2017, and within a few days it took third place among all cryptocurrencies in terms of capitalization. The division occurred due to the desire to get rid of some of the shortcomings of Bitcoin in the new branch, namely to increase the number of transactions carried out per second (increase the maximum block size) and security, as well as optimize the code to increase scalability and trouble-free growth in the number of participants.
Ethereum (ETH)- pronounced as ethereum (the monetary unit is called ethers).
1. The youngest (date of birth: summer 2015) and most successful development based on blockchain technology.
2. Many people call it the development of bitcoins. The system all works on that blockchain, but with significantly expanded capabilities.
3. Ethereum is positioned as a platform for “smart contracts” (any type of transactions without intermediaries with any types of assets - money, what else). Although, the system found its main application, of course, as a cryptocurrency.
4. The capitalization of this brand already exceeds the capitalization of Bitcoin, although it is much older than Ethereum. The prospects for further development are very bright, and not only as a platform for cryptocurrencies.
5. Another special feature of Ethereum is that mining to maintain security of the system is only needed at the initial stage.
— a branch from the main system, created by those who disagree with the new policy of Ethereum ideologists. Also, by the way, a very successful project with a capitalization of several billion dollars.
- this cryptocurrency (pronounced Litecoin) was born in 2011 and became essentially a clone of Bitcoin, but with a number of improvements that made this system popular. Litecoin managed to solve the scalability problem inherent in Bitcoin, namely the limited number of transactions (operations, transfers) made per second. As a result, transactions here are much faster and this is what users like. If Bitcoin is compared to gold, then Litecoin is silver (more reserves and lower cost).
is another successful project, which in terms of capitalization lags only behind Bitcoin and Ethereum. It's based on a distributed protocol (similar to a blockchain), but very different from what we're used to (it's more like a decentralized ledger). There is no mining at all, transfers are done quite quickly and with virtually no costs. In general, Ripple is simply a network protocol that anyone can use to make guaranteed transactions. But based on it, a cryptocurrency called XRP was created, which is native to the system. In general, Ripple is much more than just money...
Dogecoin (DOGE)— another replica of Bitcoin (more precisely, Litecoin) significantly redesigned. Dogecoin appeared in 2013 as a joke (the name came from Doge), but became quite popular. It is distinguished by a very large (unlimited) number of monetary units (they are called Doge) and their extremely low cost (which is quite logical). The commission in the system is extremely low + this crypto quite often participates in all sorts of charitable events.
- one of the Bitcoin clones with a number of improvements. For example, in Peercoin security has been significantly increased, and the mining process has also been simplified, which reduces the overall energy consumption of computing resources connected to the system. It is also distinguished from Bitcoin by the lack of anonymity, the significantly lower prevalence of this cryptographic currency, as well as high volatility (rate fluctuations). The system's prospects are not as rosy as those of those who occupy higher places in our ranking.
- similar to the previous currency, but only here anonymity is implemented. You might also know it under the names Xcoin or Darkoin. At the same time, lower energy intensity of mining and high security remained. The share of this system among other cryptographic money is not very large, but the capitalization is quite decent.
Primecoin (XPM)- a clone of Bitcoin, in which, instead of sorting through numbers in search of the desired hash, miners (miners of banknotes) perform calculations that are more useful to science (they look for pseudo-prime numbers). Also, the Primecoin system is ten times faster than its “parent”, miners receive payment depending on the complexity of the completed task, and the total number of monetary units was not initially limited, but their appearance is regulated algorithmically, which also makes this cryptographic currency similar to gold.
— the system works based on the CryptoNote protocol and has its own characteristics. For example, it does not have a limit on the number of currency units so that mining always supports the system. By the way, the peculiarity of mining this particular cryptocurrency is that it is desirable to participate in the calculations not only of video cards, but also of the processor. And it also has a very large amount of data transferred with transactions (almost an order of magnitude more than in Bitcoin).

Naturally, this rating does not pretend to be the ultimate truth. Everyone has their own preferences, nuances and desires. Some people want to make extra money on rapidly growing cryptocurrencies, while others are interested in mining. Some people value anonymity, while others want increased security, speed of work, or the absence of commission. Look current rates of popular currencies you can on this page (in fact, this is also a kind of popularity rating).

Mining, exchanges and cryptocurrency calculators

In the process of working with information, cryptosystems require significant computer power. Because today Bitcoin, Ethereum, Likecoin and other coins require enormous computing power to operate. Where can I get them?

Mining - what is it?

Most cryptocurrency systems involve the process of mining monetary units through resource-intensive calculations. This process (I already wrote about this in some detail in the above article). In fact, an ordinary PC owner can give part of the power of your computer’s video card or processor to solve problems related to cryptocurrency. As a reward, he will receive certain shares of coins for each mined monetary unit.

To make money from mining, you need to go to some site where other money makers gather, there are many similar resources on the network, download the program, install it, determine the maximum power that you are willing to sacrifice, and get to work. The computer will do everything on its own, the human job is to observe from the outside.

Three or four years ago, when there was a colossal increase in the popularity of bitcoins, and their rate was steadily moving up, experienced businessmen in the USA and Europe created so-called mining farms: they installed many special computers only for the extraction of cryptocurrency. Then there was a decline in interest, but now, against the backdrop of the rising Bitcoin exchange rate, mining is being actively remembered again.

Cryptocurrency exchanges - making money on speculation

The calculator looks like this:

First we select a cryptocurrency, then enter its amount. Individuals rarely operate with whole bitcoins; in most cases, hundredths or thousandths of it are used. The second stage is to indicate the currency in which we want to see the converted value. Third, we get the result. Let's calculate how much ten bitcoins cost in rubles:

The market rate is shown; if you wait a little, it will be updated, since quotes do not stand still and change constantly. The arrow reflects the dynamics: the price rises or falls relative to the previous value.

Is it worth making transactions with coins?

Power structures Most countries have a rather negative attitude towards bitcoins and other coins: This currency is too anonymous, it will not be possible to track money laundering or other criminal processes if its public use is allowed. As a result, many online stores do not accept cryptocurrency.

If you find a direct use for coins, or if you want speculate on the stock exchange– you can rush headlong into the pool and siphon off huge capital from cryptocurrency (it’s not too late), but if you don’t have the optimal form of using information money, you shouldn’t get involved with them.

You can get more information on working with Bitcoin and making money in the publications below. Of them you will find out how:

Materials on other cryptocurrencies are still in the process of being written.

Good luck to you! See you soon on the pages of the blog site

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What does Bitcoin look like?

Since Bitcoin is a virtual currency, it does not look like traditional paper money and coins, but like an electronic file. Each monetary unit is a numerical function that satisfies the conditions specified in the original system code. Therefore, to understand what Bitcoin is, it is enough to see its code written in the Wallet.dat file.

To understand in detail what the essence of Bitcoin currency units is, you need to understand the processes of hashing and cryptography. But today, beginners do not need to learn these complex concepts, since all processes are carried out by software, and in order to earn and use Bitcoins, it is not necessary to delve so deeply into programming.

It is enough for network users to know that Bitcoin, which can be used to pay on the network, is the sum of the source code (hash function) - the so-called Bitcoin address or public key, which can be transferred to another user. This hash amount is calculated automatically from the original key of the currency, and this process does not work in the opposite direction. Therefore, any participant in the Bitcoin system can publicly announce his public keys, but until he himself transfers them to another user, no one will be able to calculate their source code, and therefore gain access to his cyber coins.

Bitcoin coins

Despite the fact that Bitcoin is a cyber currency, it would still be a mistake to say that this money is only available in digital form. The fact is that there are already quite tangible Bitcoin coins made of metal. These coins are issued by both individuals and companies with their own Bitcoin wallets.

The process of issuing such coins is as follows:

A coin of original design is cast from any metal
The denomination is applied to one side of the coin - 0.1 btc, 0.5 btc, 1 btc, 10 btc, etc.
Then, for each coin, a unique Bitcoin address is generated, which is applied to it and covered with a hologram
The first 8 characters of the public key are written on top of the hologram so that the buyer of the coin can verify its authenticity.

Bitcoin metal coins are simply carriers of unique Bitcoin addresses and in fact have no advantages over Bitcoin in electronic form.

Issue of new bitcoins

One of the main differences between Bitcoin and other financial systems is decentralization. This means that the system has neither an owner, nor administrators, nor centralized control. The owners of Bitcoin are all participants in the system, and each network user can theoretically issue this currency.

Emission, or more precisely, mining of Bitcoin. In order to generate a new block of bitcoins containing 25 coins, complex calculations are performed using special software to find the source code that would fit the conditions of the system. In simple terms, we can say that the codes of new Bitcoins are simply selected by enumerating random numbers and comparing them with the initial conditions.

Bitcoin mining on a computer and ASIC: profitability of “farming” activities in 2017-2018

At the very beginning of the system’s existence, the process of how bitcoins were created (mining) was quite simple and fast, and even users with medium-power PCs could mine new blocks. But the more Bitcoin is mined, the more difficult it becomes to find new source keys.

To find a suitable hash function today requires very large computing power.

Therefore, people involved in the emission (mining) of Bitcoin equip mining farms, which use specialized powerful equipment, which is intended for the sole purpose of generating new Bitcoin blocks.

How to mine bitcoins in 2018: in a pool or on your own?

Blockchain technology

The entire Bitcoin system works using blockchain technology. This means that absolutely all transactions made with each Bitcoin block are entered into an open database, and every user of the system can track them. All blocks in the blockchain are interconnected in a continuous chain, and it is impossible to make changes to blocks already recorded in the database. Database registers are stored not in one place, but on thousands of user computers that are participants in the system. The register is constantly automatically updated and supplemented with data on new mined Bitcoin blocks and completed transactions.

At first glance, such openness and transparency of all transactions provides enormous opportunities for fraud, but in fact, everything is exactly the opposite.

Since the database is decentralized and is located on hundreds of thousands of computers at once, in order to hack it, you need to immediately have access to at least half of all PCs of system users, which is impossible in principle. And that is why it is impossible to spend the same Bitcoin twice - a record of the transaction will instantly appear in the registry, and the user will no longer be able to reuse the same Bitcoin address.

Advantages of Bitcoin cryptocurrency

The popularity of the Bitcoin cryptocurrency is due to a number of advantages of this cyber money over bank non-cash payments. And the most important “advantages” of bitcoins are the following:

No transaction fees
Complete anonymity of both parties to the transaction
A stable and steadily growing rate of cyber currency, due to the fact that Bitcoin is not tied to the dollar, the euro, or any other currency
Transparency of transactions and the ability to track all transfers of each bitcoin
High speed of transactions
Inability for the payer to revoke the transaction after confirmation of the transfer
Very high security of the system and its almost complete invulnerability to hacker attacks.

The short answer is nothing. If you are a simple average person with ordinary needs, then Bitcoin is not for you. Indeed, why buy Bitcoin to pay for a phone if you can use regular money for this? However, as is often the case, the devil is in the details. What can Bitcoin offer for the common man and where can it come in handy?

1. Lack of central control

What does it really matter to the average person who controls the digital currency? Really, why do I need to know this if everything is working fine? However, life shows that even large companies like Webmoney face unexpected problems from the State. Not long ago, masked people visited the Ukrainian Webmoney office and seized the servers, as a result, many people were unable to use the services of this company. In addition, it is unknown what data fell into the hands of law enforcement agencies. In the case of Bitcoin, there is simply no one to come to.

Moreover, if payment system administrators do not like some of your actions, they can easily block your account. This happens all the time. Just for fun, google how many accounts are blocked by paypal, webmoney or Yandex for completely flimsy reasons. This is simply not possible on the Bitcoin network. Even if you cross the path of Satoshi Nakamoto himself, no one can stop you from using Bitcoin.

2. Minimum commission for transferring money and high transaction speed

If you have ever made an interbank transfer, then you are probably aware of the hefty commissions and indecent waiting times. If we take international transfers, the situation is even worse. You can wait weeks for money. Things are certainly better with digital currencies, but a different kind of problem arises here. Yandex.Money is an excellent system, but no one uses it except in Russia and the CIS countries. Using the same PayPal is tedious and inconvenient for us. Therefore, the problem of fast international transfers remained open for a long time. Since the advent of Bitcoin, the situation has improved significantly. The speed of money transfer in the Bitcoin network is at the level of conventional digital currencies (i.e., almost instantaneous) and the transfer fee is pennies and does not depend on the transfer amount.

3. Irreversibility of transfer

As Vyacheslav Butusov sang, “If you pull out your hair, you won’t put it back.” Bitcoin transactions are irreversible, i.e. if the bad guys stole access to the wallet and transferred all the money to someone else’s address, then that’s it... There’s no way to get the money back. However, this feature cannot be called a disadvantage. There are a huge number of fraud schemes where an attacker makes a transfer in regular digital currency or through a bank, receives a product or service and withdraws his payment. This cannot be done on the Bitcoin network, but this does not mean that Bitcoin is protected from scammers. A striking example of this is.

4. Anonymity

All classical payment systems require the user to confirm his identity in one form or another. Moreover, if the transfer amounts are significant, then payment system employees may require you to provide copies of many documents. Additionally, if you exceed certain limits, information about your transactions will be sent to the IRS.
On the Bitcoin network, you can make multi-million dollar transactions and for this you do not need to show your real data. But you should understand that you will be anonymous until the moment when your identity cannot be associated with the address of your Bitcoin wallet. As soon as you decide to exchange Bitcoin for regular currency (rubles or dollars), there is a risk of de-anonymization.

5. Bitcoin “remembers everything”

All transactions on the Bitcoin network are recorded in a special register -. And anyone can see information on any transaction - how many coins were transferred, when and where. Those. The Bitcoin network is completely transparent. Roughly speaking, if Russia used bitcoins instead of rubles, then any citizen would be able to control the country’s budget expenditures.

To summarize we can say:
Bitcoin is an anonymous, decentralized and completely transparent network, protected by sophisticated cryptography, which allows anyone to make money transfers anywhere in the world with minimal fees.

In the following articles I will talk about Bitcoin wallets, pools, mining and how to earn or get Bitcoin for free. To be continued...

In the age of electronic transactions, the emergence of cryptocurrency has become a breakthrough in the global market. You can use Bitcoin - experts can easily explain what it is in simple, understandable words. How to buy it, why do you need such electronic money? Cryptocurrency serves as a commission-free, anonymous alternative to official, resource-backed currencies. It is possible to buy btc on specialized exchanges, but to spend it is not possible everywhere: due to its anonymity, cryptocurrency is a priori considered illegal by many countries.

What is Bitcoin

A decentralized currency that is not controlled by any bank or exchange has always been a nightmare for the global financial system. It is scattered around the globe, works only online, is not backed by anything, and every user in the world is able to influence the course without leaving the computer. At the same time, the computing function of the server grows, which in the system can look like a continuous operation. Bitcoin - what it is in simple words can be described as follows: mathematical calculations generate the mining process into a small part of computer code.

Who invented

The first developer of unique complex mathematical cryptocurrencies was Satoshi Nakamoto in 2006. Within two years, they were sent cryptographic documents that for the first time in history described what bitcoin was. Later, in 2009, Satoshi Nakamoto created the first client software that allows you to control the operation of cryptocurrency and the speed of block creation. Who invented Bitcoin and its icon is still unknown, because... a person worked under the pseudonym Satoshi, whose real data remained a secret.

What are they for?

Bitcoin - what it is in simple words cannot be explained without asking the question why it is needed and how cryptocurrency works. The main advantage of an electronic tool for storing money is the absence of commission or its insignificant value. Bitcoin is necessary for people who want to achieve 100% efficiency in their business and exchange electronic coins anywhere in the world. Commission-free transfers, complete anonymity, protection of the recipient's and sender's money from government interference - these are the advantages and features of Bitcoin and the use of other cryptocurrencies.

Technical characteristics of bitcoin

Bitcoin is a unit of information, a specific piece of computer code, expressed in mathematical calculations of computer power. The peculiarity of Bitcoin is that it is an independent digital unit, which is not influenced by other currencies and payment systems; the Bitcoin economy is completely independent. One bitcoin (1 btc) has certain technical characteristics:

formation of an information block: every 10 minutes;
block reward: 25 coins;
number of bitcoins in the world: 21 million;
the complexity of the structure changes: after 2016 blocks (2 weeks).

Open source code

The development and introduction of cryptocurrency is carried out with open source code. This means that changes to the structure of Bitcoin can be made by most users. In addition, the open source code allows any user of a personal computer to start mining electronic money. This approach to the development of Bitcoin instantly eliminates errors in the system, helps to rapidly develop the exchange network and mine Bitcoin.

Blockchain technology

A chain of blocks containing information and built according to a certain scheme is called a blockchain. Such a chain of blocks grows and performs the function of distribution and classification of the database. Necessary for conducting transactions and exchange operations with the bitcoin cryptocurrency. Blocks are formed simultaneously by many “miners”, after which they go to a special database (blockchain). Blocks contain all the information about transactions and cryptocurrency owners. The number of bitcoins does not affect the speed at which block branches are formed.

Secure transactions using electronic signatures

Bitcoin electronic signature – what is it in simple understandable words: a password assigned to a new account. When registering on the bitcoin network, all users are given unique signature keys. Only with their help is it possible to carry out a transaction from your account. In addition, it is possible to create a joint account for several people with a multi-signature. To transfer currency from it, you will need to enter the personal identifiers of at least two thirds of the account holders.

Where do bitcoins come from?

An unsupported cryptocurrency appears through the efforts of users who use it and allocate computing power to process all transactions. Bitcoin mining - what is it in simple reasonable words, how does electronic cryptocurrency appear? Bitcoin does not have a transaction processing center, so users take on the task of providing computing processes. For spending the resource of their computer, they receive a strictly defined amount of btc. In total, up to 3,600 units of currency can appear per day.

Who is issuing

The emission of Bitcoin is clearly limited, limited; you can intervene in this process only by leasing the computing power of your computer to the system. The people who do this are called miners, and for their services they receive a limited amount of bitcoin issued daily. Such an activity is currently beneficial only to owners of large companies and members of large pools. Smaller farms are already struggling to cope with the tasks provided to them by the bitcoin system.

How many bitcoins are there in the world?

A currency not backed by traditional resources, capable of self-reproduction through the execution of certain programs on the computers of network users, will instantly depreciate. To prevent this, an artificial limit has been created that prevents the number of bitcoins in the world from becoming more than 21 million. All these millions are financial transactions on the network reliably backed by computer power. Currently, 14 million have been mined. Due to the constant complication of the mining algorithm, the issue of the last Bitcoin is expected in 2140.

What is the backing of the bitcoin cryptocurrency?

Bitcoin - what it is in simple words can be described as a complicated version of the nascent economy of a country with undeveloped gold mining. An unmined resource is worth nothing except a person's promise to buy it in the future. The use of cryptocurrency is based on the same principle: it appears due to demand, which creates itself. The value of bitcoin is determined by people’s trust in the system, their willingness to conduct transactions with its help, which is why a financial pyramid or bubble arises, and this is a negative feature of bitcoin.

The difference between Bitcoin and cash

Electronic cryptocurrency has a number of striking differences from conventional cash and other valuable financial assets. Bitcoins have the following differences:

Decentralization. There is no central authority to control the network; it is distributed among all computers used for computing resources and mining bitcoins. The decentralized system uses a special program code that regulates the work of network participants and the emission schedule.
Irreversibility of transactions. Once the cryptocurrency is transferred from one recipient to one of the online wallets to another (for example, webmoney), it cannot be returned to the original account.
Emission limitation. Mathematical algorithms are built in such a way that the generation of coins is closed. The total number of Bitcoins will never change.
No or low transfer fees. A special feature of Bitcoin is the absence of any intermediaries during the transaction, due to which no commission fee is charged. There may be a small percentage of commission for transactions with bank accounts.
Does inflation affect the exchange rate? Global inflation is isolated from the financial economy, so inflation does not have any impact on the exchange rate, unlike conventional currencies.

Bitcoin electronic money - advantages and disadvantages

Like any financial system, bitcoins have their advantages and disadvantages when using, mining, and forming an exchange rate with other monetary currencies. Among the advantages are:

simple and clear use;
ease of extraction;
anonymity;
decentralization;
no commission.

The following characteristics are considered disadvantages:

transparency;
irreversibility of transactions.

Ease of use

The growing popularity of cryptocurrency is due to the ease of use of Bitcoin services. Any computer owner can earn bitcoins in several ways. The electronic currency bitcoin uses the user’s equipment for special services for large-scale information processing. Millions of computers registered on the network contribute to the growth of system performance, while users receive compensation at a favorable rate.

Complete anonymity

All cryptocurrency systems are completely anonymous. For transactions, acquisitions and investments, they do not require any passport data from the user, only the electronic wallet data is enough. The user can create an unlimited number of addresses and wallets without linking personal data. However, each transaction must be recorded under a specific number and stored in the database.

Transparency of operations

The information block system saves all transactions performed on electronic Bitcoin accounts. The main disadvantage of transparency of operations is publicity. Anyone can study all transactions carried out on a specific account. To ensure complete anonymity, it is necessary to open a new wallet or account even for a single transaction.

Where to get bitcoins

There are several ways to purchase bitcoins. However, the process can be fraught with some difficulties. For example, there are a large number of scam sites listing fake Bitcoins. You can only detect counterfeit electronic currency when you try to spend it.

There are practically no ways to get completely free Bitcoin. After the rapid growth of the cryptocurrency rate, such services for receiving free electronic coins ceased to exist. To receive bitcoins by any method requires the expenditure of certain resources. The main ways to receive bitcoins:

Cranes. One of the easiest ways to get bitcoin. The service user only needs to click on advertising banners and videos, but the cost of the transition is very low.
Mining Those involved in mining rent out video cards to obtain cryptocurrency by using the computing power of the computer. There are many farms for mass mining of Bitcoins.
Jobs paid with bitcoin. There are special exchanges that offer jobs paid in bitcoins. After completing a small task, the employer transfers electronic currency to the performer’s wallet.
Coupon clipping. You can make big profits by lending bitcoins to other users. However, you should remember that once you transfer currency to the addressee, you cannot withdraw it back in case of fraud.
Buying cryptocurrency. You can purchase electronic currency for money on bitcoin exchanges at favorable exchange rates.

What are Bitcoin faucets?

Any specialized distributors of bitcoin to resource visitors, existing mainly through the sale of advertising space on the site, are called bitcoin faucets. Entry to such resources is free, but requires mandatory registration in a simplified form: entering your email address and wallet number. Faucets work as follows: the owner places advertisements, and visitors go to the advertiser’s website by clicking on the advertisement. At the same time, they are transferred electronic currency (1 Satoshi - a conventional penny of Bitcoin).

The more clicks on different advertisements, the more virtual coins “drip”. An additional condition for some resources is the presence of the user on the site for some time (from one to five minutes). In addition, the number of paid transitions to the same site for one user may be limited relative to the time interval (for example, once per hour or day), so bitcoins are mined very slowly.

How Bitcoin works - cryptocurrency mining

The number of bitcoins in the world and the daily emission are strictly limited to 21 million, 3600 units. Mining Bitcoin - what it is in simple words is easy to explain. To generate and make calculations for these 3,600 units of cryptocurrency, the servers send special mathematical problems to the computers of mining users, the solution of which consumes a significant amount of processor and video card power - this process is called mining.

For solving these problems, Bitcoin is awarded, and it works with the help of cryptocurrency symbols. The more there is in the world, the more difficult it is to achieve the goal. The difficulty of mining lies in the fact that even now, calculating the mathematical power of the machine, it is difficult to cope with the development of Bitcoin, so this method of earning money is unprofitable for the creators.

Online wallet

In order for the user to be credited with Bitcoin currency, it is necessary to register the wallet. The main function of an electronic Bitcoin wallet is to store an individual secret key used to access the address where the cryptocurrency is stored. Transactions are processed only when a key is provided. There are wallets for computers and smartphones in the form of an application. Technically, they are the same, they work according to the same algorithms, but they are “tailored” for the use by wallet owners of a specific device with specific software.

What can you buy with bitcoins?

The use of cryptocurrency in Russia is almost undeveloped. Bitcoins can be spent or exchanged for air tickets from some companies (for example, AirBaltic), food in restaurants and cafes. On the world market, yachts, cars from some companies (Tesla), and real estate are sold for bitcoins. The main problem with purchasing with electronic currency is the small number of trading platforms that accept bitcoins and other cryptocurrencies. Banks allow the exchange of electronic currency into dollars, euros or other real currencies. The possibility and conditions of such a transfer or exchange must be clarified with specific banks.

Abroad, investing, investing one’s own money in cryptocurrencies, is gaining popularity. Due to the fact that the Internet currency bitcoin as a whole is independent of the global economy, inflation does not affect it, and the funds retain their purchasing power without the risk of huge losses in the transaction chain. The negative features of Bitcoin are the instability of the world's cryptocurrency exchange systems and the impossibility of making money transfers in Bitcoin currency.