The name Bitcoin has passed a lot of readers, especially those who follow the technical news from them, but without a full briefing about what "Petcwin" or how to use and how to work. In this article, we will talk in a simplified way about "Bitcoin" and the idea behind it and how to use it.
What is "Bitcoin"?
Petcin is an electronic currency that can be compared to other currencies, such as the dollar or the euro, but with several fundamental differences, most notably that this currency is a fully electronic currency that is traded online only without a physical presence. Unlike traditional currencies, there is no central regulatory body behind them, but can be used as any other currency to buy online or even convert them into conventional currencies.
The purpose of this currency, which was first floated in 2009, is to change the global economy in the same way that the web has changed the methods of publishing.
Decentralized currency
The idea of "Bitcoin" was first introduced as a research paper by a person who called himself the symbolic name "Satoshi Nakamoto", describing it as an electronic monetary system that relies in financial transactions on the principle of peer-to-peer peer-to-peer, a technical term means direct interaction between a user and another without a presence mediator.
"Bitcoin" is described as an anonymous digital currency, meaning it does not have a serial number or any other means of any kind that allows tracking what has been spent to reach the seller or buyer, making it a popular idea for both privacy advocates or sellers Illegal goods (such as drugs) are online alike.
KFH provides financial transactions between two people directly without any intermediary regulating these transactions. The money goes from one user account to another immediately and without any transfer fees and without passing through any banks or intermediaries of any kind.
The currency is generated by the users themselves
Unlike conventional currencies that are usually backed by certain assets such as gold or other currencies, KFHWIN is supported and produced by the users themselves. Users mean any user who wants to deal with KFHW and has a computer and Internet connection. This is done through a process called Mining, a special application installed by the user on any computer so that the application process the production of new "Bitcoin" and slowly. Through this process, the user can obtain the default Virtual PCCU in exchange for the application's use of the computing power provided by the user's computer processor to generate new amounts of currency.
When a new set of coins is created for each user, these amounts are distributed according to a certain algorithm so that the total value of the Pitcin coins in the market cannot reach more than 21 million KFU. Users with higher processing power With the extent of production of their currency.
The expenditure of "Bitcoin" or converted to real currencies
Although there is a relatively limited number of sites that accept the payments of KFH for their products, compared to the sites that deal with traditional currencies, KFHWIN is supported by an increasing number of websites, including large and diverse companies and websites, Domain names, social networks, video sites, music, and diverse sites that sell different types of products.
In addition to buying the products, the user can change his or her cash-in-cash items into other real currencies. This switch is made between the users themselves, who want to sell the money and buy real currencies, or vice versa. As a result, Bitcoin has its own exchange rate, which is heading up to $ 120 from $ 1 a couple of years ago.
Technically
Technically, each piece is a code generated by the famous and powerful encryption algorithm SHA-256 in hexadecimal format. The user's "Pitcuin" pieces are stored in a special file called Wallet. This file also retains every address the user has sent or received money from. Each user has the address "e-mail", which can be compared to the e-mail address, but it is not. It is a specific code that distinguishes each user but can not indicate his or her true identity. KFHWEN is a fully open source and therefore there is nothing hidden or unknown in its way of working.
International recognition
Germany is the only country to officially recognize the currency as a form of electronic money. The German government has therefore ruled that it can tax the profits of companies that deal with KFH, while individual financial transactions remain tax-free.
A federal judge in the United States recently ruled that "Bitcoin" is a currency and a type of currency and can be regulated by the government, but the United States has not officially recognized the currency yet.
Some believe that official recognition has a positive side, which is to give the currency more legitimacy, while others believe that this may open the door to further regulation of the currency and linking it to governments, and this is contrary to one of the features of "Bitcoin" as a currency not subject to any party.
