1. What is bitcoin?
All people who come across the term Bitcoin for the first time, must deal with the way it works, and what it means.
Let's start by describing how Bitcoin works. Well, it is based on a «peer to peer» system or what in Spanish could mean more precisely “from user to user”. A point in favor for some, a point against for others is that Bitcoin does not have any governmental or private body behind it, which sums up its definition as a free currency, and it is the users themselves (in this case thousands of computers). all over the world) who make sure to track, control and record Bitcoin transactions.
Thanks to this unified support of computers worldwide and a complex cryptographic system (created solely and specifically for this virtual currency) it is possible to ensure that no one cheats, and that BTC (short for bitcoin) is safe from attacks, attempts to forgery, duplication or any other form of scam. Hence also comes the Latin motto that some Bitcoin users coined in its early days: "Vires in numeris", which in Spanish would mean, "The force is in the numbers." That means that Bitcoin offers security to both the buyer and the seller, it is fair, and if you get a bitcoin you can exchange it for other virtual currencies, sell them, or buy them.
2. Is there to fear bitcoin?
Currently the Bitcoin network is stronger than ever. Many published writings point out as the debacle of this currency by the MtGox episode, but for experts this incident will make it much more resistant to BTC, based on the fact that it learns from failure. Spokesmen for the website have also commented "we will get up again."
Every time Bitcoin goes through a similar incident; in reference to the crisis that many point to in the case of MtGox; It can be said that Bitcoin always brings more people to its ecosystem, it rebuilds, it strengthens.
Technological developments shake the financial system, but in the end it will be a good thing for society.
3. Bitcoin the currency of the future
Bitcoin, the virtual currency, attracts more investors every day, in addition to which it has been backed by characters like Ben Bernanke. Is this perhaps the (virtual) currency of the future?
With such a short time of its creation, the virtual currency BTC has arrived at a time of change. When at some point it was spurned as a kind of fashion used only by gangsters and drug traffickers; eye at first or at least was what was speculated; In recent times, it has found new sources of credibility that support the value and legitimacy of this virtual currency.
This makes Bitcoin not simply a new electronic money system that far exceeds the capabilities of modern financial infrastructure. But a de facto in a new decentralized online economy of unlimited possibilities and profits.
So this virtual currency is a decentralized app economy that cannot be turned off, regulated or censored by governments or even traditional corporations. Since it is not endorsed or controlled with any of the latter organizations, both governmental, state or private.
Everything would happen by exchanging an equally decentralized transnational digital currency, but of course, time to time. Thanks to the sidechains, Bitcoin could become a frictionless global payment system, and a platform for decentralized innovation, I dare say the new payment method of the future, all in one.
At this rate, Bitcoin can become the next ideal application for the Internet, an application that marks a before and after, not only that, but a massive network of decentralized applications managed by instant microtransactions instead of the exploitation of personal information. from users and more.
A new website with new rules and new possibilities, imagine that.
4. Bitcoin, a dream or a reality?
Very few people knew anything about Bitcoin until in 2013 a news item went around the world, a Norwegian student named Christopher Koch earned eight hundred and fifty thousand dollars just by investing twenty-four dollars in this virtual currency.
In 2009 the young man bought five thousand bitcoin and in a couple of years this virtual currency reached the price of one hundred and seventy dollars per piece and reached all the covers of the media around the world.
Bitcoin is a currency or currency, such as the dollar, the euro, or the ruble. The difference is that it is exclusively digital and does not exist in the form of real or specific banknotes and / or coins. It can be accepted worldwide and transmitted over the Internet in seconds, through thousands of computers interconnected with each other, more specifically through a bitcoin wallet.
What makes Bitcoin truly revolutionary is that it does not belong to any state, bank, corporation, or company, state or even anything particular. It is transmitted through a decentralized network of computers so that absolutely no one can manipulate this currency, creating unlimited amounts or placing restrictions on its shipment to certain places. This is basically why Bitcoin is called a totally free currency.
Currently, and despite all that bitcoin has cost, we are at a very early stage in terms of the maturity and positioning of this virtual currency. We have seen exceptional growth and everything indicates that 2015 will be much better. I believe that Bitcoin has a great future since this currency responds to all the financial needs of the people of the 21st century. ATMs have already been created in some countries to be able to withdraw real money, and more and more establishments are accepting bitcoin as a means of payment.
5. Why invest in bitcoin?
Surely your friends, acquaintances, etc., will tell you not to invest in something that you can afford to lose. In this way, in the (increasingly unlikely, not to say improbable 100%) event that Bitcoin fails, they will be able to avoid all blame - "Don't blame me, I told you not to invest more in something that you can afford to lose! ”
However, there are good reasons to invest in this digital currency, even more than you can afford to lose. For starters, it would be extraordinarily rare for the value of bitcoin to become null. Here is why:
- First, because of Bitcoin's exceptional set of qualities, which provides a base value on which it can grow; second, the network effect: the more people adopt Bitcoin, the more useful the system becomes. Hence, users are encouraged to promote the use (and therefore growth) of Bitcoin. Third, the advantage of being the first in the market, which makes it unlikely that competitors will outperform Bitcoin, and by Saying this we refer to other virtual currencies that are currently appearing due to the great success of bitcoin. Fourth, the self-interest of bitcoiners, which will incite to solve all the problems that arise.
We already have a more endorsed idea about the strengths behind Bitcoin's growth as a medium of exchange, and this process is likely to continue until Bitcoin becomes used worldwide; something that is not crazy since there are more and more establishments that accept this virtual currency as a means of payment; using very low-cost electronic devices and paying minimal transaction costs, determined by the market.
At the same time, Bitcoin will change shape on the fly, incorporating any innovation that guarantees its success against the competition and / or some other threat.
If bitcoin continues to monetize, in the future it will have much more value than it has today. However, that is not the only reason in favor of owning bitcoins. Ask yourself, if you own bitcoins, what do you not have instead?
Well, your savings in dollars in a bank account (or some other entity) are equivalent to exposing them to possible confiscation, and the risk of severe depreciation.
In my personal opinion, I feel that Bitcoin is a currency that is growing by leaps and bounds, and will surely continue to grow, there are many fears on the part of us users to the novelty, it is clear, but I think that to stop speculating, or to continue reading wonders We should learn more and perhaps we could find a much more secure, reliable and efficient online payment method.
