What is Bitcoin

Bitcoin cryptocurrency is a digital form of money, a new generation of currency that works only on the Internet. The main advantage of bitcoin over conventional payment systems is its decentralization and the absence of any control from banks.The system is controlled only by the same participants - computers with special software installed.Such money cannot be spent twice, arrested, the sender cannot be tracked, and anyone can make a purchase anywhere if they have access to the Internet. Bitcoin gained its popularity due to the ability to hide the personal data of transaction participants and make international money transfers.

Bitcoin contains the smallest particle, Satoshi, named after its creator Satoshi Nakamoto, which is equal to 0.00000001 BTC.

How does this work?

Payments are made using blockchain, a type of database. When a member of the system sends funds to another member, this does not happen in the same way as in the case of bank electronic money. He makes a registration entry that he transferred the money. Each participant in the system has a copy of such a database, so everyone can see a record of a new transaction. 

In order for the information about the transaction to be displayed in the blockchain, it is necessary to wait for the required number of network confirmations.You can't change or delete information in the blockchain, you can only enter it. Each subsequent block contains a unique fingerprint (hash) of the previous block.Therefore, if you change one of the old blocks, all subsequent ones will be invalidated.This is what makes the network secure from hacking and forgery.Bitcoins can be obtained as a reward for a process known as mining. Miners are rewarded in the form of a commission for each operation in bitcoins. Bitcoins have qualities that are inherent in fiat money, but not all economists consider it a “new kind of money”. At the moment, bitcoins are best suited to function as a medium of exchange and a means of payment. You can buy bitcoin using online exchange services, at bitcoin ATMs, or directly from an interested person. The Commission for bitcoin exchange can be set independently, and the priority of processing the operation will depend on its size. Transactions are practiced without commission at all, but in this case it is impossible to predict their processing time, which can take a very long time.

What does the bitcoin exchange rate depend on?

The btc rate to the dollar is quite volatile and is not controlled by anyone, quotes are formed solely based on the balance of supply and demand. Cases of sharp growth, as well as sharp falls, have occurred repeatedly, but financial organizations cannot prevent them. There is an opinion that bitcoin is not suitable for long-term storage due to its unstable value.Forecasts regarding the exchange rate differ cardinally, and crypto enthusiasts believe that bitcoin will oust the dollar and take the status of the world reserve currency.

In 2017, bitcoin grew almost 20 times, reaching a historic high of $19,666 on December 17.