What is Bitcoin?
Bitcoin is a network of global consensus, that creates a new payment system and a fully digital money. This is the first decentralized p2p payment network that serves its users well, with no central government or intermediaries. From a user point of view, Bitcoin is very similar to the cash for the Internet. Bitcoin can also be viewed as a leading accounting system with a triple record.
Bitcoin is the first implementation of the concept “cryptocurrency”, which was first described in 1998 Wei Dai. In cyberpunk e-mail newsletter, he proposed the idea of a new form of money to control emissions and the transaction that uses a cryptography instead of a central governing department. The first specification Bitcoin works and the proof of this principle was published in 2009 by Satoshi Nakamoto in cryptographic e-mail newsletter. Satoshi left the project in late 2010, and did not reveal details about his personality. The community has since grown exponentially, and now many developers are working on Bitcoin. Anonymity Satoshi often causes unreasonable doubt, the majority of which related to the lack of understanding the nature of the Open Source Bitcoin. Bitcoin protocol and software are in the public domain, and any developer anywhere in the world is able to view a copy of the program or do their personal modified version of the software Bitcoin. Just as in the current development, the impact of Satoshi was limited only by the code changes that take other people, and therefore it might be incorrect to say that it controls Bitcoin. As such, the identity of the inventor of Bitcoin as irrelevant today as the inventor of the identity of an ancient paper.
It’s important to know, that no one owns a network of Bitcoin, just as no one owns the technology behind e-mail. Bitcoin is under control of bitcoin users around the world. While developers and improve the software, they can not be forced to change the protocol because users are free to choose what software and how they use. Bitcoin can work properly only with the full agreement between all users. Therefore, all users and developers are interested to protect this consensus.
There are no restrictions imposed. Bitcoin allows users full control over their money. It offers very low commission – bitcoin payments are currently made without any commission or with an incredibly low commissions. Members may include the commission in the transaction in order to get priority in processing – that gives a more rapid confirmation of a transaction network. In addition, there are processing companies, which help traders in the implementation of the transaction, translating into bitcoins allied currency, which are sent directly to the accounts of business day-to-day. Since these services are based on Bitcoin, they offer commissions that are much lower than when using PayPal or bank cards.
Bitcoin offers fewer risks for entrepreneurs – Bitcoin transactions are safe, reversible, and do not contain sensitive or personal information about the customer. This protects the business from losses caused by fraud or fraudulent refund, no need to meet the standards of PCI – safety standards payment card industry. Businesses can easily expand into new markets, which are not available, or credit card, or fraud ratings are unacceptably high. This results in lower commissions, expanding markets and reducing administrative costs.
Security and control – bitcoin users full control of their transaction; traders can not withdraw money without your knowledge or desire to, as can happen with other methods of payment. Bitcoin payments can be made without reference to the personal information of the transaction. This gives a powerful defense against identity theft.
Bitcoin Users can also protect their money with the help of backup and encryption. Transparent and neutral – all information relating to the money supply Bitcoin is always available for all units in the chain, you can check out and use in real time. No one person or organization can control or manipulate the bitcoin protocol because it is cryptographically protected. Therefore, the network Bitcoin can trust about what it is to continue to be neutral, transparent and predictable.
However, many people still do not yet know about Bitcoin. Every day, more and more companies accept bitcoins because they want to get the benefits, but they still do not have much to start a full-fledged network effect. Also, the market is vulnerable to currency fluctuations – The total value of bitcoins in circulation and the number of companies using Bitcoin is still insignificant compared to what it could be. Therefore, relatively small events, one-time deal, or the actions of individual companies may substantially affect the price of bitcoins. In theory, the fluctuations will decrease as they grow older bitcoin markets and technologies. Currency startups is a phenomenon which the world had never seen before, so imagine how it will be really difficult to develop – but at the same time, it captures the imagination.
Please, notice, that Bitcoin software is still in the beta stage, and a lot of unfinished features in active development. Still developing new tools, services and options to make Bitcoin safer and more accessible to the majority. Not all of these tools are ready for use. Most associated with Bitcoin companies are still at the initial stage of development, and do not offer any guarantees. In general, Bitcoin is still in the making.