Bitcoin – some basic information, Part One
Bitcoin was born in 2009 and became one of the most fascinating economic events of the modern times. It is far from anyone who has knowledge of what Bitcoin really are and we must therefore make an effort to explain currency phenomenon here.
Everyone thinks about Bitcoin as the symbol of economic freedom and opportunity to carry out easy payments and one of the main points of this currency is that there is no central 3d party that could affect the value of the currency. Bitcoin is easily explained as 100% digital and decentralized currency. A decentralized here means that a central bank of a country can not produce new money nor could affect Bitcoin in any way.
The main idea behind the currency is to be able to transfer payments from person to person without the usage of an intermediary (a bank). This means that transactions go a lot faster in comparison to the traditional way. The higher degree of anonymity and very low transaction costs are the most important benefits.
The amount of Bitcoins on the market will stop at 21 million BTC, which is interesting since it will eliminate problems related to inflation. Bitcoins are manufactured by enabling users to perform so-called 'Bitcoin mining'.