Myself And Bitcoin

31 October 2018 Crypto

The Bitcoin market was founded in 2010 and the first real deal was made when 10,000 Bitcoin was paid for pizza. Hal Finney was one of the first supporters, a shareholder and dealer in Bitcoin. He downloaded the software on the Bitcoin site on the same day after receiving 10 coins from Satoshi Nakamoto. It was said that Wei Dai was the creator of the e-money site who was followed by others in creating sites.

It is also said that Nakamoto owned one million Bitcoins before he disappeared, and handed everything over to the current developer Gavin Andersen, who later became a leading figure in the organization. Managers of Bitcoins said the purpose of this currency is to change the global economy in the same manner that the Web has changed the methods of publishing.


 
Bitcoin is a cryptocurrency, meaning that it relies mainly on the principles of encryption in all its aspects, and those who wish to deal in it has to open the portfolio of Bitcoin online and wait for a few days for the approval of the request, and then buy Bitcoin from any account on the Internet in a legitimate manner, ie, pay dollars or dinars and get a number of currency units deposited in his electronic portfolio and after that use his balance to purchase what he/she wants, which might be forbidden stuffs or services but given to him in some way, and here no party can, to a large extent, know the parties to the process. Cyber crime police have not yet reached a high degree of progress to see how such transactions can be prevented or identify the parties.

To ensure that conversions are valid, the Bitcoin system maintains a log of all transactions on the network called Block Chain shared by all clients who share this registry through a system based on the BTC protocol.

The series of blocks contain all the procedures that were performed by using Bitcoin which enables us to know the balance of each address on this network. This concept is called the description of the chain of the interconnection between the blocks, where each block contains the hash of the block that proceed which is called the genesis block.

Currently, the owners of Bitcoins have little choice to spend their money, and this made some pay for exchanging them to traditional currencies. This is usually done through special platforms where the Bitcoin is converted to other currencies.

If the governments want to know the identities of some account holders, they only have to legalize transfers instead of preventing them. The name of each account holder will be known as soon as he wants to exchange his holdings for conventional currencies, which is a starting point for tracking stolen money.

The price of the current Bitcoin is much lower than it should be, so they do not want to sell their possessions at low prices because they have used huge amounts of electricity to produce them, in addition to what they invested in special equipment to do so. The situation will worsen for them unless the number of prospectors drops significantly, as the number of currencies to be produced will be halved every four years. In contrast, large amounts of Bitcoin were produced very cheaply in the beginning because the number of prospectors was little and the “hardness” factor was very low.

Germany is the only country to officially recognize the Bitcoin arguing that it can tax the profits of the companies that deal in it.

Some believe that official recognition carries a positive side, while others believe that this may open the door to further regulating and linking the currency, which runs counter to the advantage of not being subject to any party.

 

SOURCE : ARABTIMES

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