Today all network users know about cryptocurrencies that can be used to pay on the Internet, and if you have not yet learned about cryptocurrency, we have it. And although on this moment There are already more than a dozen different electronic currencies, the express analysis of which you can see at the link, yet the palm of leadership among virtual money is confidently held by the very first cryptocurrency - bitcoin. In 2009, when Bitcoin appeared, the cost of one virtual coin was $1, and now its current value is .

What does Bitcoin look like?

Since Bitcoin is a virtual currency, it does not look like traditional paper money and coins, but like an electronic file. Each monetary unit is a numerical function that satisfies the conditions specified in the original system code.

Therefore, to understand what Bitcoin is, it is enough to see its code written in the Wallet.dat file.

To understand in detail what the essence of Bitcoin currency units is, you need to understand the processes of hashing and cryptography. But today, beginners do not need to learn these complex concepts, since all processes are carried out by software, and in order to earn and use Bitcoins, it is not necessary to delve so deeply into programming. It is enough for network users to know that Bitcoin, which can be used to pay on the network, is the sum of the source code (hash function) - the so-called Bitcoin address or public key, which can be transferred to another user. This hash sum is calculated automatically from the original key monetary unit

, and this process does not work in the opposite direction. Therefore, any participant in the Bitcoin system can publicly announce his public keys, but until he himself transfers them to another user, no one will be able to calculate their source code, and therefore gain access to his cyber coins.

Bitcoin coins

Despite the fact that Bitcoin is a cyber currency, it would still be a mistake to say that this money is only available in digital form. The fact is that there are already quite tangible Bitcoin coins made of metal. These coins are issued by both individuals and companies with their own Bitcoin wallets.

1. A coin of original design is cast from any metal
2. The denomination is applied to one side of the coin - 0.1 btc, 0.5 btc, 1 btc, 10 btc, etc.
3. Then, for each coin, a unique Bitcoin address is generated, which is applied to it and covered with a hologram
4. The first 8 characters of the public key are written on top of the hologram so that the buyer of the coin can verify its authenticity.

Bitcoin metal coins are simply carriers of unique Bitcoin addresses and in fact have no advantages over Bitcoin in electronic form.

Issue of new bitcoins

One of the main differences between Bitcoin and others financial systems is decentralization. This means that the system has neither an owner, nor administrators, nor centralized control. The owners of Bitcoin are all participants in the system, and each network user can theoretically issue this currency.

Emission, or more precisely, mining of Bitcoin. In order to generate a new block of bitcoins containing 25 coins, complex calculations are performed using special software to find the source code that would fit the conditions of the system. In simple terms, we can say that the codes of new Bitcoins are simply selected by enumerating random numbers and comparing them with the initial conditions.

Bitcoin mining on a computer and ASIC: profitability of “farming” activities in 2017-2018

At the very beginning of the system’s existence, the process of how bitcoins were created (mining) was quite simple and fast, and even users with medium-power PCs could mine new blocks. But the more Bitcoin is mined, the more difficult it becomes to find new source keys.

To find a suitable hash function today requires very large computing power.

Therefore, people involved in the emission (mining) of Bitcoin equip mining farms, which use specialized powerful equipment, which is intended for the sole purpose of generating new Bitcoin blocks.

How to mine bitcoins in 2018: in a pool or on your own?

Blockchain technology

The entire Bitcoin system works using blockchain technology. This means that absolutely all transactions made with each Bitcoin block are entered into an open database, and every user of the system can track them. All blocks in the blockchain are interconnected in a continuous chain, and it is impossible to make changes to blocks already recorded in the database. Database registers are stored not in one place, but on thousands of user computers that are participants in the system. The register is constantly automatically updated and supplemented with data on new mined Bitcoin blocks and completed transactions.

At first glance, such openness and transparency of all transactions provides enormous opportunities for fraud, but in fact, everything is exactly the opposite.

Since the database is decentralized and is located on hundreds of thousands of computers at once, in order to hack it, you need to immediately have access to at least half of all PCs of system users, which is impossible in principle. And that is why it is impossible to spend the same Bitcoin twice - a record of the transaction will instantly appear in the registry, and the user will no longer be able to reuse the same Bitcoin address.

Advantages of Bitcoin cryptocurrency

The popularity of the Bitcoin cryptocurrency is due to a number of advantages of this cyber money over bank non-cash payments. And the most important “advantages” of bitcoins are the following:

• No transaction fees
• Complete anonymity of both parties to the transaction
• A stable and steadily growing rate of cyber currency, due to the fact that Bitcoin is not tied to the dollar, the euro, or any other currency
• Transparency of transactions and the ability to track all transfers of each bitcoin
• High transaction speed
• Inability for the payer to revoke the transaction after confirmation of the transfer
• Very high security of the system and its almost complete invulnerability to hacker attacks.

Hello, in this article we will talk about the virtual currency - Bitcoin.

Today you will learn:

1. How to earn bitcoins with and without investments.
2. What to do with bitcoins.
3. How much do they earn?

Working ways to earn bitcoins

First, watch a 3-minute video that literally tells you “at your fingertips” about the Bitcoin cryptocurrency:

Earning bitcoins using a computer is becoming more difficult. Just a few years ago, when Bitcoin was just beginning its “promotion,” it was possible for anyone to earn the average salary of an office worker. Now, with the advent of the big one, we have to come up with new ways real earnings coins.

Mining

Mining- This is currency extraction using a video card, one of the first ways to earn cryptocurrency. It has its drawbacks, although it is considered the most reliable and profitable.

About two years ago, you could earn money thanks to a video card, which did not require any expenses. The whole point was that the currency “hunter” built gold mines in a game form, extracted gold and exchanged it for real money.

Now, in order to earn money, you need to create or buy a special computer configuration with an expensive video card. Not only will the configuration cost a lot of money, but you will also have to pay twice as much for electricity. That is why mining, as an unprofitable method, goes down a step from the top every month.

Advantages of mining on your own computer	Disadvantages of mining on your own computer
1. It is possible to sell equipment at a discount at any time. 2. Complete minimization of speculation. 3. You choose which currency to “hunt” for. 4. Automatic earnings of bitcoins.	1. Equipment handled in this manner has a high risk of breakdown. Added to all this is the low likelihood of warranty service. 2. Noise and double the electricity use. 3. It is not possible to create large farms in your own apartment. 4. Due to Internet outages, work is completely interrupted (even if it has lasted for several days), and the farm has to be started again.

The offer of mining among “hunters” is considered only if it is possible to pay half the cost of electricity or not pay for it at all.

Cloud mining

The essence of cloud mining is that you don’t have to spend money on a computer, video card, and so on. You are offered to rent computing power on remote servers. However, cloud mining Almost completely “attacked” by scammers who successfully hide after receiving the rent payment. So be careful with this.

The purchase of capacity occurs in hashes. The computer unit increment system is identical to bytes. It is advisable to purchase Giga or Terahashi. This is a more reliable option.

The average cost of one Gigahash depends on the exchange rate. For example, in 2016, 1 bitcoin cost about $650. 1 Gigahash cost 0.0006 bitcoins ($0.47). This will be enough for a stable income of 1 bitcoin per week.

Investments

Bitcoin appeared in 2008 and its cost was negligible. In 2017, the cost increased a million times. An investment carries some risk. With a long-term investment in cryptocurrency, it is possible for the price to rise, stop, or fall.

After several years, many people regret that they did not contribute, for example, in 2013. It was at the end of this year that the price began to rise, which later rose “to the skies.”

Bitcoin farm

Mining farm – a chain of computers that perform calculations around the clock, 365 days a year. The way a farm works is that you provide a specific program with the processing power of your computer. The video cards built into the farm operate at the limit of their capabilities.

Farms occupy a pyramid position. They are beneficial only to those who started doing this at the time of the birth and “promotion” of cryptocurrency. Many people, having learned that a mining farm brings in $1,000 a month, spend fortunes on it, but what happens then?

Perhaps in the first month the farm will give you the desired money. But the fact is that over time, the computing power requested by the program and servers increases. And the power of your farm remains the same as in the first month. As a result, earnings will decrease.

In the best case, the owner of such a device begins to try to fix something, but nothing works, and therefore he has to sell the farm.

Next, the second pitfall: your farm worked hard, for example, for about six months or a year. You bought it for 100,000 - 150,000 thousand rubles, and in a year its cost due to constant work will be about 60,000 thousand rubles.

But does anyone make money on these farms? Yes, on the computing power of those who buy up hangars and completely fill them with farms. They invest several million and buy about hundreds of thousands of video cards. This brings income, but newcomers who have stepped on the second pitfall make money only by selling these same mining farms.

To avoid getting hooked by those who sell farms, ask yourself: why is he selling it if it generates income? True miners who know all the intricacies and nuances of making money will not dare to decide to sell what generates income.

How the farm works and what you get paid for

Bitcoin is a decentralized unit. It does not have a single server or developer who would do this. This is why when you download special mining software, you turn your computer into a piece of the server. And there are quite a lot of people like you. If you put all these particles together, you get a powerful server.

To give people an incentive to stay part of the server, the system pays rewards in the form of virtual currency. That is, miners receive money for donating the power of their computer to the system.

Remember that it is impossible to quickly earn bitcoins, and it is also impossible to earn them simply by placing a farm on the windowsill and minding your own business. This is a kind of investment in which you need to wait for payback, you need to constantly work on it, delve into new subtleties and monitor the rate of virtual currency daily.

Earning bitcoins without investment

It is quite possible to make money on Bitcoins from scratch, but it will take a lot of time. At the moment, there are a huge number of servers that offer free currency, more precisely, Satoshi (one hundred millionth of a Bitcoin). All you have to do is enter captchas, go to websites or watch videos. In general, a full-fledged job.

Where to earn bitcoins

Servers free bitcoins called Bitcoin faucets. The earnings are not high, but you also do not perform complex tasks. Initially, faucets were created to “promote” currency, but now they are the easiest and most popular way to make money. Plus, there is a referral program on all servers. By attracting partners, you receive additional income.

Several ways to earn currency without investment:

1. Bitcoin collection.

The easiest way to receive bitcoins. The registered user is asked to either enter a captcha or view an advertisement, and after the action is completed, they are paid from 50 to 200 satoshi.

Typically, such faucets have a timer for entering a captcha or viewing an advertisement. On some sites, the entry can be repeated every five minutes, while on others it can be repeated every hour. Experienced “hunters” suggest setting up 10 – 20 servers for coin mining, because it is very difficult to get even an average income from one such faucet.

If you have or is well promoted social network, then this method is just for you. You can leave affiliate links to Bitcoin faucets where a certain number of people will see them. Thus, we are back to the referral system again. For referrals, that is, partners, the service determines your percentage.

1. Automatic earnings on faucets.

Earning money from a machine is the most the best option to search for virtual currency. This is a fairly simple method that is suitable for those who want to make a profit without any action at all. In order to earn money, you just need to install the special STARTAVTOBET application on your computer, and it will bring you money automatically.

What to do with earned bitcoins

If you have earned your first bitcoin, then the question arises: what to do with it? Before you start working, any server you want to register on will offer to open a wallet with which it cooperates.

This is absolutely the same system as, for example, if you paid your child’s tuition through partner bank University: minimum commission or its absence at all, and the money will arrive one hundred percent. Many Bitcoin faucets withdraw earnings automatically if you enter your wallet number.

After the first cryptocurrency has been successfully earned, it must be withdrawn. Many advanced “workers” advise not to wait for the rate to double or increase, but to withdraw the amounts immediately, because there is a huge risk of “burning out”.

Bitcoin withdrawal

It is legal to withdraw bitcoins to an electronic account. Unfortunately, this currency cannot be cashed out, but there have been cases when it was used to pay in online stores.

The following ways to receive cryptocurrency are available:

1. You can withdraw through exchanges.

Exchange systems have flooded the Internet. They allow users to engage in a system of purchases and sales, as well as cryptocurrency conversion (conversion is the ability of currencies to exchange among themselves). The commission on exchanges is minimal, but you need to wait until there is a buyer for your product.

A popular exchange is a great chance to quickly exchange a coin. The most reliable exchanges are those that, after registration, ask you to make a deposit and undergo verification, and only after that they provide a complete list of transactions.

1. Exchangers.

The most reliable and proven method by many people. Practically instant payments to the wallets you want. But of course, the exchanger requires a fee for its operations.

1. Forums.

This is perhaps the most unsafe method of exchanging currency. It is built through a forum on the complete trust of strangers in each other. And here the chance of becoming a participant in a dishonest deal increases.

On specialized forums It is possible to find a specific person with whom you will make a transaction, but this will take some time. The advantages of this option are zero commission and instant exchange.

How much do you earn on bitcoins?

The more people mine or register for Bitcoin faucets, the less you will earn. Imagine a circle that is divided into ten equal parts. A circle is information that you need to process, and for this processed circle you pay 20 bitcoins.

There are ten people like you, and when you process this circle, one tenth of all the money will end up in your wallet. Now imagine that a thousand more people find out about this circle, which means that now the reward will be a thousand times less.

The Bitcoin exchange rate is not backed by anything and is extremely unstable. It changes almost every hour. This happens because its fall and rise depend only on two factors: buying and selling.

Example. If one person decides to sell ten bitcoins, the rate will fall quite low, and if he decides to buy them, the rate will increase. It also depends directly on the news. If a well-known news newspaper writes that they want to block the cryptocurrency, then the rate will be almost equal to the minimum.

When considering mining as an option for making money on cryptocurrency, the daily income will be about 600 rubles per day. And this is with the most powerful gaming computer. If we take a computer of average power, then maximum income will be 50-60 rubles.

Alternative ways to make money on Bitcoins

People don’t really want to wait for their cloud mining to take off or for a certain amount of Satoshi to be collected on a Bitcoin faucet.

In order to earn 1 bitcoin per week, you can use the following methods:

1. Take advantage of cryptocurrency doublers.

Doublers operate on the “invest - get twice as much” system. In this case, you need to be careful and not jump into the pool headlong. Beginners who invest large sums to receive what they think is the same cryptocurrency are left with nothing.

In case of “victory” over the doubler, it is recommended to use only those servers that offer small percentages (2-3% per day). There is no need to “scroll” the money several times either. It’s better to do this once, withdraw and invest further amounts. This will be more reliable, and you definitely won’t get burned out.

The operating principle of doublers is based on the arrival of newcomers to the system who invest money. In this case, payments to existing participants continue. But such servers later turn into scams and are forgotten.

Earning money from honest services is not built on the principle of a pyramid, like future scams, but on the principle of how deposits work in official financial institutions, where they pay a small percentage on the account balance. In order to earn 1 bitcoin per week, you need to invest 15.

1. Casino.

There are small lotteries or casinos on Bitcoin faucets. With an accumulated amount of several hundred Satoshi, you have the opportunity to win at the casino and earn currency for free.

1. Exchange.

Traders no longer want to earn one bitcoin a week. They want the same results in a few days or even hours. Trading takes place according to standard market system: We buy cheaper and sell more expensive.

The exchange rate does not depend on any influences. The main task of a trader is not to panic when the rate begins to decline rapidly. Just wait until the price rises again and sell. For your patience you will receive very decent money.

Hello! In this article we will talk about cryptocurrency and try to give all the most important information about it.

Today you will learn:

1. What cryptocurrencies exist?
2. Why are they so popular?
3. How can you make money on them?

What is cryptocurrency

Let’s figure out what is hidden under the term “cryptocurrency”, what it is in simple words, and why it is called that way. The name Crypto Currensy itself, meaning “cryptocurrency,” appeared in Forbes magazine in 2011. And since then the name has firmly entered into everyday use.

Cryptocurrency called a special type of electronic payment instrument. Strictly speaking, this is a mathematical code. It is called that because when circulating this digital money, cryptographic elements are used, namely an electronic signature.

The unit of measurement in this system is “coins” (literally “coins”). Cryptocurrency has no real expression such as metal coins or paper banknotes. This money exists exclusively in digital form.

The fundamental feature that distinguishes crypto money from real money is the way it appears in the digital space. Thus, real means of payment must first be deposited into a specific account or online wallet, and cryptocurrency units appear in electronic form.

The “issue” of digital money occurs in various ways: this is ICO (initial coin offering, system), and mining (maintaining a special platform for creating new crypto-money), and forging (formation of new blocks in existing crypto-currencies). That is, cryptocurrency literally emerges “from the Internet.”

Another important difference from conventional currency is the decentralization of issue. The issuance of electronic currency involves the generation of a mathematical code followed by an electronic signature.

Only the Central Bank has the right to issue real money, but anyone can issue crypto money. In order to make transactions using cryptocurrency, you do not need to contact any third parties(by banks).

Payments using digital money are carried out in exactly the same way as regular electronic transfers via a cashless payment system. The only exceptions are exchanges through which crypto money can be monetized, that is, converted into regular means of payment.

The circulation of such currency occurs according to the “blockchain” system (literally “closed chain” in English). This system is a database distributed across millions of personal computers around the world. At the same time, the storage and recording of information when circulating cryptomoney occurs on all devices at once, which guarantees absolute transparency and openness of the transactions performed.

Why is cryptocurrency so popular?

The popularity of cryptocurrency is due to the demands of the time. In the age of ubiquity information technologies There is an extremely high demand for universal means of payment, which could be used to pay in the electronic space without being tied to a specific country or institution. Cryptocurrency became such a means.

For payments with virtual money, only their number is used, so the cryptocurrency does not need real expression. Digital means of payment are protected by cryptographic code, which makes them more reliable than “real” money. And due to the absolute decentralization of the emission of virtual coins, they can neither be counterfeited nor banned.

Another feature that contributes to the popularization of crypto payments is complete anonymity. When conducting transactions, no one will receive any information about the payer or recipient; of all the data, only the number will be used electronic wallet.

And also the attractiveness of cryptocurrency is that you can get it yourself. That is, digital currency can be obtained almost out of thin air. But you can also buy and sell, as well as invest in cryptocurrency. At the same time, crypto money can be exchanged for traditional cash, as a result of which they are able to generate quite tangible income.

Types of cryptocurrencies

Digital money first appeared in 2008, and by now there are already several thousand varieties of it. There is a large category (almost 50%) of crypto money that is actually not backed by any content. These are the so-called soap bubbles. Let's not take them into account.

The most common types of cryptocurrency:

1. (BTC, bitcoin, at the moment one bitcoin is equivalent to 4200 US dollars). Bitcoin cryptocurrency, in simple words, is the very first digital currency, on the basis of which all subsequent ones were developed. Bitcoin developer (developer group) – Satoshi Nakamoto. This currency has a stated quantity limit of 21,000,000, however, it has not yet been reached.

2. Ethereum(etherium, equal to 300 US dollars). This is the development of Russian programmer Vitaly Buterin. This currency appeared relatively recently – in 2015. Now it is quite popular along with bitcoins.

3. Litecoin(litecoin, LTC, equal to 40 US dollars). The currency was developed by programmer Charlie Lee and has been issued since 2011. Litecoin is considered an analogue of silver among cryptocurrencies (and Bitcoin is an analogue of gold). The issue of litecoins, like bitcoins, is also limited and amounts to 84,000,000 units.

4. Z-cash(Z-cash, 200 US dollars).

5. Dash(dash, $210).

6. Ripple(Ripple, $0.15).

In addition to the indicated names, Darkoin, Primecoin, Peercoin, Dogecoin, Namecoin and many others are also used in electronic circulation.

The most popular of all cryptocurrencies is Bitcoin. Its name is made up of the words “bit” - the smallest unit of information and “coin”, which means “coin” in English. For BTC, or bitcoin, not only a program has been created, but also a special digital wallet in which this currency can be stored.

In addition, now there are even special ATMs where you can transfer bitcoins into regular paper money, and a number retail chains and stores accept this currency for payments along with regular bills and coins.

Advantages and disadvantages of cryptocurrencies

According to its main characteristics, digital money differs significantly from conventional money. This entails not only continuous advantages, but also some disadvantages for users.

Pros:

1. Anyone can get this kind of money using specially organized activities (mining). Since there is no single emission center and no bodies controlling this process, no one can prohibit ordinary citizens from obtaining crypto money online.
2. All operations with cryptocurrencies (so-called transactions) occur completely anonymously. The only open information in this case is the electronic wallet number. And all information about its owner is closed.
3. Decentralized issuance, in addition to the possibility of everyone earning money, also determines the lack of control over this process.
4. Each type of cryptocurrency has an issue limit. Thus, excess emission is impossible and, as a consequence, there is no inflation in relation to this money.
5. Cryptocurrency is protected unique code like , so it is copy-protected and therefore cannot be counterfeited.
6. There are practically no commissions for transactions, since when conducting transactions using cryptocurrency, the role of a third party in the relationship - banks - is excluded as unnecessary. Therefore, such payments are comparatively cheaper than using regular cash.

With all the variety of positive characteristics, cryptocurrency also has disadvantages.

Minuses:

1. If a user has lost the password for his electronic wallet, this means for him the loss of all funds in it. Since there is no control over transactions using digital money, there are no guarantees of their safety.
2. Cryptocurrency is characterized by high volatility due to the specifics of its circulation (volatility means frequent changes in its value).
3. In relation to cryptocurrencies, attempts may be made to exert various negative influences on the part of national monetary regulators (for example, the Central Bank of the Russian Federation).
4. As the process of mining cryptocoins becomes more and more complicated over time, mining using the equipment of individual users becomes less and less profitable.

Each of existing species Cryptocurrency has both advantages and disadvantages inherent in them all together.

In general, all crypto currency units are characterized by the same features as modern money, namely:

• They are versatile;
• They are a means of exchange;
• They can be accumulated;
• Perform a calculation function.

The value of digital money varies depending on supply and demand.

How to make money on cryptocurrency

Currently, there are a number of ways to make money on bitcoins and other virtual currencies:

1. Buying and selling cryptocurrency. This is done on special exchanges or exchangers electronic money. The principle of operation is to buy a currency when its value decreases, and sell when it increases. Most often, such trading is associated with bitcoins, since their cost is higher than other types of cryptocurrency.

2. Cryptocurrency investments. are made by transferring a certain amount of electronic money from one person to another in trust. Usually questions trust management brokers do it.

3.Extraction of electronic money (mining). Cryptocurrency mining, in simple words, is the process of extracting cryptocurrency using special software. It will not be possible to produce large volumes of cryptocurrencies on an ordinary home computer; quite significant power is required, and, consequently, the purchase of additional equipment. A powerful video card and processor are required. In addition, special devices are used - so-called mining farms, which produce cryptocurrency.

4. Cloud mining. For such digital currency production, you do not need to buy additional devices. For this purpose, there are special services where you can sell and purchase computing power. That is, the service generates cryptocurrency for you, and you pay for the power expended.

5. Cryptocurrency giveaway. Such services are usually provided for attracting referrals or entering letters from pictures (captcha), that is, in fact, for increasing site traffic. These are the so-called gateways, taps or distributors. There are also special Bitcoin games in which you can earn electronic money. Earnings on such services are small: a small portion of Bitcoin (Satoshi) is distributed per hour.

Conclusion

Thus, cryptocurrency is a new word in money circulation. Its emergence is due to the needs of the time. Despite the fact that crypto money has no real expression, it is almost on par with traditional currency units can participate in various market operations.

Currently, there are a number of ways to earn cryptocurrencies, as well as options for making a profit from them, which is what the most advanced users use.

In general, cryptocurrency in its characteristics is in many ways similar to traditional money, however, it also has a number of fundamental differences, which allow digital money to increasingly gain popularity in the modern information space.

Bitcoin is the most famous cryptocurrency in the world.

In spades, its price reached almost $20,000, and even grandmothers discussed it in the capital’s transport.

Despite its universal popularity, few people know what Bitcoin actually is.

Contents:

Cryptocurrency boom

2017 is the year of mass popularization of BTC. All news feeds were filled with information about the rise or fall in the price of cryptocurrency.

Some countries, like China, limited its circulation and mass access to it by their citizens.

Others, like Japan, recognized it as an investment asset.

No matter how the authorities treated it, its price broke records almost every day. If in January last year, its price did not exceed $1,000, then by December it jumped to $19,500. True, it did not last long at this level and fell to $10,000 at the beginning of 2018.

However, the price has firmly established itself at this level and remains around $11,000.

At the same time, bitcoin is the champion in capitalization among cryptocurrencies. Now its capitalization exceeds $198 billion.

What is Bitcoin

In reality, it is not so much Bitcoin itself that is important, but the technology behind it - .

This is a decentralized system that has revolutionized the world of finance.

It was thanks to her that the emergence of cryptocurrency became possible.

Essentially, Bitcoin itself is a derivative of the blockchain. Or, to put it quite simply, a piece of program code. The blockchain consists of blocks that store information about transactions on the network.

Blockchain does not have a centralized data store. All information about all transactions is stored on thousands of computers.

Anyone can access this data.

If hackers hack one, the entire chain can be easily restored from other PCs.

In addition, decentralization allows for fast cross-border money transfers.

For example, normal bank transfer will travel from Europe to North America for a week, or even longer.

A year later, development was completed and the first block was mined. IN

Miners received 50 BTC as a reward.

Almost immediately, Satoshi Nakamoto transferred BTC for the first time.

He transferred 10 bitcoins to another crypto enthusiast, Hal Finney.

In September of the same year, Bitcoin was exchanged for fiat for the first time.

Crypto investor Marty Malmi sent 5,050 BTC to another investor under the username NewLibertyStandart. For them, Malmi received only $5.02.

In 2010, crypto enthusiast Laszlo Hanecz became the first to successfully exchange BTC for a real commodity.

He bought himself two pizzas. It cost 10,000 bitcoins.

At the moment, controversy over the identity of the creator of Bitcoin continues. Many claim this title, but they do not provide any convincing evidence. In any case, to perpetuate Satoshi Nakamoto’s contribution to the development of cryptocurrencies, the hundred millionth part of Bitcoin was named in his honor.

Where to buy BTC

There are thousands of services for buying and selling cryptocurrencies. You can get them on exchanges like or.

Because of this, the number of transactions has increased significantly. Since the block size is limited to 1 MB, confirmation began to take longer. This affected the performance of the entire network.

Last year, the crypto community found a solution to this problem - .

Its purpose was to update software equipment the entire network, which would increase the speed of transaction processing.

But there were opponents to this theory, who argued that updating the software would not bring the desired result.

They proposed more radical measures– increase the block size by 8 times, but at the same time retain the software of the traditional network.

The conflict has escalated. And in the summer of 2017, supporters of the second theory carried out a hard fork - essentially, a branch from the original chain and the creation of a parallel one. As a result of this, arose.

At the same time, fans of hard forks went into a frenzy and new coins began to appear like mushrooms after rain.

So, in less than six months, thanks to the hard fork, the developers created several varieties of Bitcoin: Diamond, Gold, God, Super, World.

And this is far from over. According to the forecast of Lex Sokolin, director of fintech development at Autonomous Research, up to 50 new hard forks may occur in 2018.

What are Bitcoin faucets?

Bitcoin faucet is simply translated - bitcoin faucets.

These are resources on which you can “collect” Satoshi – a hundred millionth part of BTC.

The first crane was created by Gavin Anderson in 2010. This faucet gave away 5 bitcoins.

All you had to do to get them was go to the site and fill out the captcha.

At the current rate, it is unlikely that anyone would miss such an opportunity. But then bitcoin cost only $0.24 apiece, and only the most avid crypto enthusiasts believed in its bright future.

Over time, there were more and more taps. At the moment there are resources that pay Satoshi for viewing ads. Moreover, there are casino satoshis where you can win them, for example, at roulette. But the bulk of crypto coins are spinning on and lying in . Therefore, some decent amount of Bitcoin can only be purchased, no matter for what purpose.

Many Internet users are wondering: what is Bitcoin (bitcoin, btc, btk, cue ball)? In short, it is decentralized (which means it cannot be faked or banned) electronic currency, completely protected from wear and emissions. In the first 2 years of its existence, the idea did not leave the boundaries of the World Wide Web itself. The population simply did not know about the currency or did not understand what Bitcoin was. But in a number of countries in South America and Japan it is already recognized as a means of payment. There, along with the state currency, you can use bitcoin.

Bitcoin what is it? What is Bitcoin? (+video)

What is Bitcoin in simple words? The first thing you need to know is that it is a virtual currency and it works on both computers and mobile devices. In addition, the Bitcoin currency does not have a central administrator or any control by people. As a result, this results in significant benefits for users.

Creation means of payment Bitcoin was started in 2008 by a programmer under the pseudonym . The new currency came to world fame just 2 years later, demonstrating a steady upward trend. The name of the creator gave the name to the smallest particle (one ten-millionth part) - satoshi.

How do cryptocurrencies work (using Bitcoin as an example)?

So how does it work? To understand the principle of operation, it is best to compare it with an online bank, payment system or real bank. Translation into traditional payment systems looks like that:

1. You send the bank a request “I want to transfer 5 rubles from account A to account B.”
2. The bank or server decides whether the payment can be processed and also charges a commission.
3. Money comes from your account to the one you specified.

Therefore a large number of inconvenience to the user: server malfunction, legal problems with the bank or any other issues make both payments and, possibly, withdrawal of money from the account inaccessible. Now let’s see what Bitcoin is and how the system works.

The electronic currency bitcoin uses a special algorithm (blockchain), which evenly involves every computer working in the system in operations.

At the same time, the devices themselves are not connected in any way geographically and can be located in different parts of the globe. Each device is also used to store information about current funds, everything is encrypted and duplicated many times.

Bitcoin payment algorithm

1. If we simplify and write it in the “bitcoin for dummies” style, then the sequence of events when sending a payment in cryptocurrency is as follows:
2. You create a request “I want to transfer 5 rubles from account A to account B.”
3. An algorithm decides which computer will process your transaction.
4. The information is “written in” and transferred to all devices in the system.

Bitcoins also go to B’s account.

How does Bitcoin work? Bitcoin what is it? All technical details (video)

How many are there? Many people are interested in how many bitcoins there are in the world at the moment. Their approximate number is slightly more than 17.9 million (as of September 2019). The system provides for the creation of a new bitcoin by using a special device for computing operations and processing transaction data - . But there is a lot to “print” in this way. new currency

If it doesn’t work out, the system has a limit on the number of bitcoins created per day (1800 BTC).

There is a maximum allowable number of btc, upon reaching which mining (creation of new units of currency) will no longer be possible and it is 21 million. Using simple calculations from current indicators, it is easy to calculate that the increase in the number of virtual coins to the maximum will last for 150 years (approximately 2140), which means the questions “how many bitcoins can there be in the world?” and “how many zeros does it have?” You can simply not ask yourself.

What is Bitcoin and what is its practical significance for the end consumer? There is no even theoretical possibility of producing such a quantity of cryptocurrency that this would lead to a fall in its price for a long time. A striking example: the US dollar has fallen more than 300 times over the past 100 years due to the emergence of more and more new money. At the same time, only one structure had control over their release. As a result, the investments and savings of millions of people could and could become worthless at any time. In fact, this statement works for every classical currency and payment system.

There are a huge number of differences between cryptocurrency and regular (fiat) money. Therefore, it is difficult for many to understand why bitcoin is needed. Let's try to figure it out:

• The theoretical impossibility of inflation. Even the creators of the system will not be able to “print” more bitcoins. Their number is specified at the program code level. If previously it was possible to create new units of currency (mining), now its quantity has irrevocably stabilized.
• The absence of any intermediaries when carrying out transactions with Bitcoin: no server or other user can either accidentally or intentionally block the transfer or stop the operation of the system - it is not subject to outside influence.
• Decentralization means that the operation of the system is ensured by each computer connected to it separately. In fact, the virtual currency Bitcoin will exist as long as at least one device is working.
• And now there are tens of millions of them in the world and the number is growing exponentially.
• The absence of a central hub, administration and management means that no legislative or regional prohibitions on Bitcoin Internet money apply. When making transfers within the system, cryptocurrency is not subject to the jurisdiction of any state or private person.

Very high performance. Even international transfers take up to several minutes, regardless of the time of day and your location. And the commission for one transaction is minimal. In this component, the electronic currency Bitcoin has no equal.

• A few more differences
• Records of transfers are public and available to the public. You can track where your money went and where it came from. At the same time, anonymity remains at a high level.
• Easy registration: the Internet currency bitcoin does not require the disclosure of personal data. You don't need to go through complicated procedures to create one. The process takes a few minutes at most. The number of accounts is also unlimited.
• Division into ultra-small shares opens up completely new opportunities for trade and entrepreneurship that were previously unavailable. In most cases, there is no transfer fee at all or less than $0.01.
• No one, not even the state, can take away the money in your wallet. If only you own the key to your account, then you have a real one hundred percent guarantee of the safety of your money. The digital currency bitcoin is completely safe.
• The number of transfers, the volume of bitcoins sent or received are simply not available.
• During all the searches in the system, we did not find almost a single critical bug; the client for work is constantly updated. The software is convenient even for those who do not know why bitcoins are needed.
• Soaring prices. No type of fiat money has increased by several thousand times in a decade. Compared to fiat, the Internet currency bitcoin, the rate of which is already over $10,000 apiece (September 2019), was able to easily increase demand and rise in price.

Current

So, what are bitcoins and how to earn them in 2019. There are several ways to receive cryptocurrency:

1. On stock exchanges.

At the moment, there are many options that actually work and are usable:

The main part of the market (about 70%) is held by the btc-usd pair. Most of these services require authorization, which includes sending scanned documents for verification.

2. Exchange services for Bitcoin and other cryptocurrencies

• Matbea ( registration bonus 300 rub. in a day)
• 24paybank
• Telegram bot for Bitcoin ()
• Telegram for Bitcoin Cash
• Telegram for Ethereum
• Telegram for Litecoin
• Telegram for DASH
• Telegram bot for DOGE (Dogecoin)
• BOT Telegram for USDT
• BOT Telegram for RUBM
• BOT Telegram for USDM

They work in exactly the same way as usual exchange offices principle, charge fixed percentage for the operation. Synchronize the rate several times a day with one of the exchanges listed above. Allows you to purchase btc using almost any traditional payment method.

3. Bitcoin -

Sites that give away a small portion of Bitcoin for free. There is no danger to the user in them - the service simply uses your computer for certain operations, such as mixing flows of funds. The amounts that can be received in this account are extremely small, but the process itself will allow you to answer questions like “Do you need the virtual currency bitcoin btc?”, “What is bitcoin and how does it work?” etc.

4. Buying second hand

On forums dedicated to bitcoins, you can find a large number of cryptocurrency owners in your city. It is important to carefully monitor the reputation of the seller and ask which services can be used to promptly verify receipt of funds. This is not difficult even for those who do not know how to work with bitcoins.

A few years ago, the above-mentioned mining (generation of bitcoins) could have been included in the list. But now the popularity of cryptocurrency has reached too high a level. When limited to daily norm created blocks, this makes earning even a meager amount of money in this way an almost impossible task.

Bitcoin cryptocurrency: how can you use it?

And yet, what to do with bitcoins? There are many options for both those who like to make money and investors, as well as those suitable for less risky users who do not know what bitcoins are and why they are needed:

1. Storage

The best answer to the question, what are Bitcoins for? If we analyze the graph of the behavior of the currency price against the dollar, then the unconditional maximum was in December 2017 - $20,000. Virtual money Bitcoin, the rate of which exceeds $10,000 per 1 BTC (September 2019), periodically breaks value records. In addition, all trends indicate that the demand for cryptocurrency will grow very quickly and within 2 years they will displace international payments from the market. Where is the best place to store bitcoins is a controversial question and will be discussed in one of the sections below.

Considering the limit on the amount of currency in the system (21 million), with increasing demand, electronic money Bitcoin will inevitably increase in price.

Another thing is that the security requirements for your computer are increasing significantly. Because all transfers in the system cannot be canceled. In fact, it is precisely the original limitation that Bitcoin is secured with. There is basically no chance of your investments depreciating in the long term. It’s worth thinking about how to store them now.

2. Make international payments

Among freelancers and remote workers, paying with bitcoins has become commonplace. It's cheap, reliable and anonymous, which is what he's always been famous for. The operating principle of which is based on decentralization and powerful encryption. In addition, this is a very simple process: even those who have no idea what electronic money Bitcoin is can figure it out in two minutes.

At the moment, btc can be used to pay with Dell, Microsoft and Amazon. Not to mention hundreds of smaller stores and services. In the countries of the European Union, South and North America, as well as Far East You can easily use them to pay for food, clothing and other small goods. Bitcoins are in great demand around the world. Even in Russia, Rostov-on-Don, a famous cafe began to accept them.

4. Gamble, make sports bets

Play gambling, make sports bets, use them for trading on stock exchanges, even if they simply do not exist in your country. Here everything is limited only by the imagination of the developers of various projects and the possibilities of cryptocurrency. After all, what is Bitcoin in simple words? The ability to spend money anonymously and quickly.

Disadvantages of Bitcoin

Although Bitcoin has many advantages, the currency also has many disadvantages and it is worth considering them during the dating process:

1. If a virus erases your Bitcoin wallet file (this applies to accounts that are located on local devices) or is able to track your password, your money will not be returned. In addition, this includes a fairly large amount of space taken up. The entire transaction block (beginning of 2019) already occupies more than 200 GB. This is a consequence of how cryptocurrency is structured. Secure synchronization (database update) will also take some time. As a result, this will affect ease of use.
2. If you figure out why Bitcoin is needed and decide to invest money, you may experience a drop in price due to lack of demand. The value of a cryptocurrency is determined by capitalization and demand (and only by them) - this is a consequence of how Bitcoin works.
3. Bitcoin virtual money does not support refunds in case of password theft or fraud. As a result, no one has the power or authority to reverse a Bitcoin transaction unless the person who took it back returns it to you.

Bottom line

Now we have dealt with the question of Bitcoin - what is it - an interesting alternative to money, which has a right to exist. Yes, the currency also has a number of disadvantages, but they are completely offset by a huge list of advantages and the ever-growing demand for cryptocurrencies. Over time, its price and importance in the world will only increase.

Now we understand what the essence of bitcoin is. Tell me your opinion about this digital currency. How long has she come to our world and what will her future be like? Let's share our experiences and help each other with this.