Bitcoin (BTC) is a digital currency. Bitcoins do not exist physically. One Bitcoin is practically a very long series of digital numbers. All Bitcoin users’ computers and mobile devices have a program for Bitcoin transfers. A visit to uniccshop.mn comes essential there.
Bitcoin transfers are public, but the parties to the transfer are Anonymous. Only the digital addresses of the sending and receiving Bitcoin wallets and the number of bitcoins being transferred are public, verifiable information. In Bitcoin, accounts and money transfers are simultaneously stored on all computers that are part of that money system.
Bitcoin Transfer Network
High-performance computers capable of verifying Bitcoin transfers from people on the network verify the accuracy of money transfers by solving complex encryption algorithms in a team work. Bitcoin transfer certifiers are called quarries.
When a single Miner or group of miners succeeds in decrypting a set of encryption algorithms, or block, that verifies multiple Bitcoin transfers, the solver also creates new bitcoins in his or her wallet that he or she can use as a means of payment or resell.
Because new bitcoins are created in the process of calculating money transfers and the whole system is based on mathematics, the number of currency units is limited. In total, there may be 21 million bitcoins. Half of that amount was created in 2013, and by 2040 bitcoins are estimated to be in use at 99.9% of the total. Bitcoin’s value is determined by the market, purely by demand and supply, and fluctuates sharply.
How can I get bitcoins?
Bitcoins can be bought or mined. In practice, however, productive mining requires a special high-performance computer for bitcoin mining. The electricity consumed by mining alone is easily higher than the value of the bitcoins or fragments that result from mining. According to Forbes, mining in Bitcoin consumes $ 15 million a day in electricity. Bitcoins can be purchased in official currencies, such as dollars, from online bitcoin brokerage services. Bitcoins can also be purchased directly from another user.
How to use bitcoins
Bitcoin transfers occur between payment parties’ Bitcoin wallets. Bitcoin Wallet is a software application that is installed on a computer or mobile device and contains an encryption key of approximately 50 characters. The encryption key allows the wallet owner to access their bitcoins. In connection with a payment transaction, the Bitcoin Wallet sends the money transfer information to the network and receives the confirmation that the money transfer is verified.
Can Bitcoins Be Stolen?
It is extremely difficult to break the code that makes up the actual bitcoin system and the encryptions it contains. Bitcoin’s decentralized and public accounting system, the blockchain, contains the entire transfer history of each existing bitcoin, and is always recertified by the miners at each Bitcoin transfer.
According to Oxford Internet Institute researcher, virtual currency is not in itself a dubious investment or acquisition target. The system is open, transactions are openly visible on the net and there is no malicious party behind the system.
The risks are related to bitcoin custody, unreliable Bitcoin stock exchanges and the unstable exchange value of bitcoin against real currencies. Most wallet services are certainly honest. However, there are cases where the entire wallet service has disappeared with the money, say experts.
