The regulator of the commodity market in the United States, the Commodity Futures Trading Commission (CFTC), officially declared that bitcoin falls into the commodity category. It is therefore a first step towards regulating virtual currencies.
Today, the big banks are also looking to make the most of the financial potential of Blockchain, Bitcoin technology, in order to save on financial transactions but also to set standards across the financial industry. .
WHO CREATED THIS CRYPTOCURRENCY CALLED BITCOIN?
Bitcoin is the work of a genius who calls himself Satoshi Nakamoto. That’s all we know. It could even be several people, nobody knows. If you want to make money in bitcoin, you must aware about all terms related to bitcoin
WHAT DOES THE BITCOIN PAYMENT METHOD LOOK LIKE?
The public key is made up of 34 alpha-numeric characters starting with “1” or “3”, in the style 15VjRaDX9zpbA8LVnbrCAFzrVzN7ixHNsC. The private key acts as an electronic wallet. This one is anonymous.
The private key is made up of 51 alpha-numeric characters starting with the number 5. It is required to transfer bitcoins to another user of the network.
HOW MANY BITCOINS ARE IN CIRCULATION IN THE WORLD?
As of this writing, there are about 16 million bitcoins in circulation in 2016 (compared to 10 million bitcoins in 2013), for a cash supply of around $ 6 billion in 2016 (compared to $ 1 billion in 2013).
Victim of its success, the Bitcoin network, in its current configuration, will soon saturate, which may cause both traffic jams and a degradation of the service. Faced with this danger, a solution seems to be imperative: introduce technical innovations to allow the network to absorb more traffic.
HOW ARE BITCOINS PRODUCED?
Bitcoins are “excavated” according to a predefined algorithm. They are in a batch of 25 units, and come to reward the efforts of calculation aiming to find the solution to what is very similar to a random mathematical problem. You can use the btc loophole login for all kind of prices and trading of the bitcoin currency.
The algorithm was designed in this way so that bitcoin behaves exactly like a rare commodity whose exploitation offers decreasing marginal returns. A bit like gold or oil, for example (easy and cheap to find at first, then increasingly difficult and expensive).
Mining bitcoins therefore requires more and more time and resources (computing power, hardware, developers). Result: although virtual, the bitcoin supply is constrained. The algorithm thus gives bitcoin immunity against inflation.
In this, bitcoin is the complete opposite of the Linden dollar, the currency of the online virtual world Second Life (remember?). The latter is produced by a central authority, a de facto monopoly, at its discretion, without any limit.
The scarcity of bitcoin is one of the elements giving it value. Another element is its usefulness as a means of payment.
WHO ACCEPTS BITCOIN PAYMENTS?
Few merchants accept to be paid in bitcoin. Most…
Read more:Is Bitcoin Currency value going to increase every year? – The Zimbabwe Independent
