What are Bitcoins?

What is Bitcoin?

Bitcoin is a payment system or type of currency electronics, which is characterized by not being backed or delimited by any banking or financial entity, unlike the currencies or exchange rates used worldwide.

So basically this virtual "currency" lacks the implications known for a traditional currency, which establish parameters such as inflation or interest rates, factors that influence the increase in its value.

The way to calculate Bitcoins is established through an algorithm that is responsible for measuring the movements or transactions made in real time, these transactions are direct, thanks to the fact that it is structured under the protocol peer to peer o  P2P; a network that works through computers to share direct information from user to user, through points of intersection or different servers, which are connected as equals between them. In addition, Bitcoin is managed and improved by its own users, who are in charge of providing the improvements they consider necessary for this system, and because it is adaptable, it provides the freedom to choose which software can be used to manage it.

Bitcoin Features:

• To use Bitcoin, it can be downloaded as an application for your computer; for any type of operating system, and for mobile phones; either for android or iOS.
• Bitcoin works under the supply and demand theory; which establishes that there must be an equilibrium point in the market according to the supply of the good or service, so that the demand for it is satisfied.

• Bitcoin cannot be counterfeited, because it is a non-physical currency or form of payment, which works under the definition of a cryptographic currency.
• As it is a decentralized payment system, that is, there is no third party for the process, the transactions are direct, very similar to receiving or sending an email, and irreversible for users.
• Bitcoin works with a published accounting system called Blockchain, which is characterized by presenting a "wallet" format, which securely records all the information about the transactions carried out.
• Bitcoins can be acquired with the exchange of other currencies, as a form of payment for goods and services, and through the mining is..

How to use Bitcoin?

The first thing is to install Bitcoin for your computer or mobile phone. By installing the application you will be able to create the wallet, which will allow you to execute your payment processes, accompanied by your private key, to preserve your information, and a public key, to work with the different access points that allow you to use Bitcoin.

When installing the application, a Bitcoin address will be created, which is free, to send and receive the Bitcoins. You can also create the number of addresses you need, this is not limiting. The record of the amount of Bitcoins you have in your account is similar to other monetary systems to save your money, so if you receive or spend, this will be reflected in your account automatically and safely. Although the transactions are public, the system prevents users from showing their identity.

To be able to send Bitcoins, you must access the application with your private key and then select the transaction plus the recipient's address. After this, the transaction will be automatically reflected in your account, publicly registered, but secure, on the different servers managed by the Bitcoin network. Remember that in the device that you execute your payment processes, there will be no record of them, but in your account safely, in the block of the block network. Used to add the transactions and also be approved by the system.

This system of mining is. it is used to approve, verify and register the payment processes, so that this chain cannot be altered and that the block network remains secure.

How to generate Bitcoins?

First you need a program that allows you to mine, for this install a Bitcoin client, and a digital wallet to store your Bitcoins. You can also use the system Bitcoinplus, which allows you to mine just by leaving the page window open on your computer using shared software.

It is important to know that each Bitcoin has an encrypted code, which must be processed so that the 64-digit key that the block has can be obtained. then, in order to earn Bitcoins, it is only necessary to process the algorithms of the Bitcoin, so that the system is in charge of paying those who support this. The system offers a certain number of "blocks" to mine, which can be seen in real time, so users who want to generate Bitcoins know how many of these blocks are available to encrypt.

The complicated thing is that it is not easy to carry out this operation, which makes it necessary to have a high-level computer that can process the key of the blocks without problems. In addition, encrypting the blocks individually has also become more difficult, which is why many users who are dedicated to this join mining pools. This consists in that several users together, dedicate themselves to deciphering blocks, joining their computers, so that later, when they achieve it, they divide the profit among them. The idea of ​​all this is to crack the codes faster, and try to encrypt the entire key or a portion of it.

If you do not have the knowledge or equipment to mine, you can also buy Bitcoins in exchange houses of these, for other currencies.

Knowing all of the above, you don't have to be an expert to use Bitcoin. Just remember to keep your private key safe, since the system does not allow you to regenerate private keys, and check where you can use this system to make your payments.

More information on how to make money with bitcoins at: howtoearnmoneywith.net