Bitcoin, what they are and how they work

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What if we told you that you can shop on the internet without opening your wallet? Sounds like a dream right? Yet it can be done, with the Bitcoin.The Bitcoin it is in fact one electronic money born in 2009 from the brilliant intuition of the inventor known under the pseudonym of Satoshi Nakamoto.

Bitcoin has in fact ushered in the era of “cryptocurrencies”And, although there are hundreds of them today, Bitcoin remains the most famous.

WHAT ARE BITCOINS?

In practice, the cryptocurrency (“hidden coin“) it’s a medium of exchange, just like the euro, but unlike the latter it is digital and not physical.

Furthermore, unlike most of the existing traditional currencies, Bitcoin does not belong to a central body or organization: the security and the very structure of the system are entrusted to a distributed database in a network of connected computers.

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Cryptocurrency is a medium of exchange, just like the euro, but unlike the latter it is digital and not physical. | Pixabay

HOW TO OBTAIN AND USE BITCOINS

But, without going too far into the technical complexity of this structure, let’s find out how Bitcoins can be obtained and how they can be used.

First of all, the economy of this system is still very small compared to that of normal currencies and yet, year after year, new companies or entities are added to the list of those that accept this form of payment. Platforms like The Pirate Bay, Free Software Foundation And Wikimedia Foundation they accept this system and it is possible, through intermediaries, to do you also shop on Amazon and eBay, buy games, music and books. But more and more sites and companies are opening up to cryptocurrencies.

So, practically, Bitcoins can be used to buy real assets.

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Bitcoins can be used to buy real assets. | Wikipedia

To register, you do not have to sign anything. Just register on the bitcoin.org site and get your own Bitcoin address which will be used to receive or send money. After that, Bitcoin will allow you to send and receive payments at very low cost: except for micro-payments, there will be no no fees charged.

Bitcoins are possible get it in two ways: the first is, trivially, offering something in return. In fact, it is possible to “sell” products, objects, websites or other online services by asking for cryptographic money in exchange instead of a normal currency.

The other way, however, perhaps the simplest one, is to buy these coins directly exchanging them for a real currency. You can of course also buy fractions of a Bitcoin since, at the time of writing, a Bitcoin is valued at more than € 38,000.

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Bitcoins can be obtained by selling products, items, websites or other online services. | Pixabay

There is actually a third method as well: mine Bitcoins. Since this is a virtual currency, however, there is no mention of real mines in which to “stand out”, but to participate in the complex functioning of the cryptocurrency by obtaining a payment in bitcoin in exchange. Ok, but what should I do? The question is very technical but in a nutshell they must encode and transfer blocks of currency memory from point A to point B. To do this you need powerful computers and some IT skills, as the procedures are complex and must meet high security standards.

WHO IS SATOSHI NAKAMOTO

Who is Satoshi Nakamoto, the inventor of Bitcoin? The theories are many. First of all, no one knows if it is a ‘he’, a ‘she’ or if it is a team of scholars. The fact is that in Japanese “satoshi” means “clear thought, fast”, “naka” indicates a “relationship” and “motion” indicates “an origin” or “a foundation”.

Source: bitcoin.org

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