Bitcoin - the virtual currency is currently motivating activities between virtual transactions with other users. It has the ability to push values up to 4 260 USD as last Thursday but has now plummeted to 60 USD / unit as any kind of real money in the world. Moreover, in recent years, we are witnessing an organized attack by hackers using malicious code to exploit Bitcoin users via computer. As noted by malicious hack Bitcoin was spread across the European region through an anonymous link on the user's Skype account.
However, despite the mixed information and interesting comments revolve around virtual currency, but many people still have difficulty understanding exactly Bitcoin is and how it works. These are concerns that not just anyone, especially if you're thinking about investing time and money into this virtual currency.
First, you should start with "Bitcoin wallet" (Bitcoin wallet). You should also know that Bitcoin is not entirely dependent on the economic situation of any country. We can easily exchange and you do not have transaction fees. However, you should know a few important things before "throwing money" into the market Bitcoin and volatile this period, Genk would like to introduce to you 7 things you should know about the money system Bitcoin .
1. Bitcoin is man-made, and exchange control
Put simply, Bitcoin is a mathematical structure take the underlying algorithms and units used to calculate the value of money. It has similarities as well as differences compared with ordinary common currency. Original algorithm of Bitcoin is Satoshi Nakamoto created but in itself it is developed, exchanged and controlled by the users all over the world, not any rights agencies such as banks or government . Besides, Bitcoin entirely based on digital technology and you will never be able to touch or touch the copper Bitcoin 'true' if you do not purchase copies of it.
Whether it be operated by human hands but the developers have tried to limit the number of Bitcoins in circulation in the market. Based on the original algorithm, the number of Bitcoins in circulation network virtual money only amounted to 21 million BTC (units of Bitcoin ) and the system will automatically regulate the amount of money to ensure the supply of Bitcoins rise steadily . Based on this mechanism, and Bitcoin 21 million will be first launched in 2140. Not only that, due to network Bitcoin records transactions of all users, so you can track the exact number of Bitcoins are created on site at all times Blockchain.info - one website monitoring network Bitcoin and a host of 'wallet' Bitcoin wallet.
2. Bitcoin bubble can also be turned
Even in the present time, Bitcoins can also be regarded as a commodity, but it is only valid for those who are willing to spend money to buy it, so the price of Bitcoin tend to change constantly . For example, in mid-January, Bitcoin is valued at 15USD/don position. Realizing the potential of "new land", many people have flocked to trade Bitcoins and this is why the price of Bitcoin ever be pushed to the highest level of transaction history - and now 260USD/bitcoin rapidly cooled to 98 dollars.
However, due to the instability in value and only for the most popular time, governments (typically as Cyprus) has advised people not to hoard the virtual currency and limited currency in circulation market.
Magnus Thor Torfason Professor, Faculty of Business Administration of Harvard Business School, said: " Bitcoin is a kind of identifiable improvements in value volatility and the volatility of the price of this unit in the near future This brings the characteristics of the economic bubble ... Whether we have assumed that Bitcoin is priced 10 times their real value is more reasonable in the future it is likely to fall to 1 / 10 compared to the current price. We do not really have yet to find a reasonable method to value virtual currencies like Bitcoin , so if you intend to invest in Bitcoin , you should see about the riskiness of its investment extremely high. "
3. Bitcoin has the basic mechanisms of action: Digging, digging and digging ...
If you want to enter the market Bitcoin , you only need a PC with a relative configuration and start "training money" in network Bitcoin . Specifically:
The amount of Bitcoins will be transferred to the "diggers" (Bitcoin miner) - install and run the Bitcoin client software in your computer. Bitcoin software take advantage of the processing power of the CPU and GPU to run extremely complex algorithm and then sharing solution for the entire network. Although the algorithm is very difficult to find a solution but it is easy to check the results right / wrong and for every correct result, "miner" will get some suit Bitcoin effort they spend.
It should also be added that the algorithm used in the mining Bitcoin is complicated for those who use public computer or experts on the type of algorithm to be able to follow the conventional method. Therefore, many people often gather for activities and search Bitcoin like "gold mining" in harsh conditions and are like gold, the supply of Bitcoins is relatively limited.
However, the only difference between gold and degree virtual money is distributed in the market. The algorithm Bitcoin constantly changing based on the amount of money in circulation in the market and it also must ensure that the amount emitted not too much nor too little. If too much supply, Bitcoin will be easier than training. But when supply is too low and the "miner" too much, they have to invest a PC to configure staging 'terrorist' with a "farm yard" (server farm) scale to maximize competitiveness as well as the ability to "mining" of each person. Of course, when there are too many people involved, the work "soft gold sand" will become ever more difficult.
According to her Vitalik Buterin, magazine editors Bitcoin Magazine: "For now, dig Bitcoin is not a good idea. You will not gain anything and the best way to own Bitcoin is money spent on them on the trading floor. "
In the opinion of the writer, Buterin she was right. In these days, you will no longer be able to earn virtual money as before if you do not participate in "social diggers" (mining pool) - a group of users to use the power of computer processor combined with together to provide solutions for faster algorithms, whereby the rate found Bitcoin will be higher. Currently, there are many "social miner" was established and every opportunity there are rules and modes of operation of their own. If you intend to take a chance that you can find on the list of Bitcoin Wiki page and contact your operator for more details.
4. Bitcoin is not welcome at the business establishment
Although the Bitcoin is still relatively new, but the number of transactions now accept Bitcoin is growing rapidly. However, the majority of business related to Bitcoin still happening out there, true to the nature of a type of virtual currency and you can "consume" Bitcoin in some websites like Reddit, WordPress, and even Mega Wikileak is even. Besides, a number of business establishments "real" (mainly bars and small shops) are also gradually shifting to using virtual currency. If you want to know more about the website as well as trading business establishments accept virtual money, you can look on the Bitcoin wiki list.
5. Bitcoin currency is no guarantee
Trading Bitcoin only be done one way, it means that when you transfer money to someone, you can not withdraw their orders. Therefore, if a hacker grasp "Bitcoin wallet" your, he'll totally have control over what you currently have and when that loss is inevitable.
However, if you use the hosting services of third-party virtual currency with a responsibility to protect your money from hackers, you can still recover a portion (or all) of the money was lost. Typically the hosting service "virtual wallet" Instawallet had to shut down due to hacker attacks and managing units of service on the compensation for the services of participants.
6. Bitcoin and their father is a mystery
The founder of the network virtual currency Bitcoin is a coder known under the name Satoshi Nakamoto. Nakamoto has launched 50 co Bitcoin first in June 2009 and it is considered as the initial platform (genesis block) for network virtual money.
Shortly thereafter, Nakamoto vanished. Many reporters have tried to investigate the true identity of Nakamoto but failed. Until now, the truth about who (or group) initiated successful virtual currency today remains a mystery.
7. Bitcoin is not the first virtual currency but also not final
We can see that Bitcoin is a virtual currency is seen as the most successful so far, but few know that it was not the first currency used on the Internet. Previously, we have e-gold, and Beenz to Facebook Credits, many people have tried to create the kind of digital currency can survive on computer networks for over a decade but nobody scored mark.
The virtual currency existed previously unsuccessful for various reasons. Some were "murdered" by the influence of the state. There are so self-destructively no use. Because Bitcoins are able to circulate in the market so it is not influenced by any individual or organization specific, and it is only suppressed when no one needs to use again.
Theoretically, a hacker could destroy network Bitcoin using code interference in the system. However, during the past 4 years, the system's code Bitcoin is still seen as sacrosanct despite appearing in users hack money make money for themselves or attack on account of the transaction other.
It is thanks to the ability to protect themselves against any risk of intrusion, the market has started to appear the unit of "mimic" in Bitcoin . We can mention TerraCoin, Ripple and PPCoin is the typical virtual currency platform based on open source Bitcoin and they are bared in order to compete with real money. In the present time, the user should keep the necessary distance to the virtual currency in general and Bitcoin in particular. Due to the unusual price volatility, Bitcoin is a double-edged sword when Bitcoin can turn you into a millionaire today and a beggar tomorrow.
