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Bitcoin is a sensation on the web – virtual money and its real impact on our lives

9 min read

Changes related to the IT revolution have long ago affected almost every sphere of our lives. The virtual world is boldly entering the competences hitherto reserved only for the highest state institutions. Bitcoin is a sensation on the web – virtual money that is beginning to have a real impact on our lives.

The banking system has always been characterized by stability and invariability. With the development of the Internet, it began to differ significantly from the expectations of the growing number of Internet users. The first revolution related to online money took place in the late 1990s. In 1998, PayPal started, which liquidated the unwritten monopoly of credit card issuers for secure payments on the Internet. Thanks to the concept of cheap micropayments, online commerce could develop on an almost gigantic scale. This service’s incredible popularity has shown that everything related to money trading is a field for really great innovations. The fact that Poles also significantly contributes to the dismantling of the ossified system shows the popularity of native virtual exchange offices, thanks to which it is possible to exchange currencies more favorably without leaving home. Innovation has finally touched the very idea of ​​money. Currently, there are over a hundred unofficial currencies in the world, and the leader among them is the one that has already managed to mess up the minds of investors – bitcoin.

Money without an issuer

Bitcoin formation is a natural consequence of two phenomena. On the one hand, there is a desire to adjust money to a modern user’s needs, which involves breaking the traditional way of functioning of the currency and the related restrictions. On the other hand, the evolving crisis has shown that the international financial system is primarily regulated by the political situation and not only by the economy. This translates into focusing attention mainly on activities related to co-financing banking financial institutions and printing money.

In this climate, an entry appeared in the online forum for cryptographers on November 1, 2008, in which the technical specification of a virtual currency called bitcoin was published. It was a coin made of virtual bits. The creator of this idea signed the Japanese name and surname, Satoshi Nakamoto. Attempts were made to reach him, but it was only established that he was using an email account from a German server and that Satoshi Nakamoto was probably just a pseudonym.

Digital gold

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Simply put, bitcoin’s idea is to recreate gold parity as the foundation of monetary policy digitally. This parity was based on the principle that limited ore resources must cover the amount of paper money on the market. This prevented the printing of empty money and any consequences that these activities brought with them. You do not need to have a large number of coins to earn a lot from them. You can use any trusted bitcoin trading platform, you can read the trusted Bitcoin Future Review

Bitcoin exchange rate is based only on the number of bitcoins available on the market and users’ confidence in this currency. According to the assumptions, it is decentralized, it works the same everywhere in the world and is not subject to artificial, arbitrary restrictions or impediments. No political or financial elite has any influence on him. The number of bitcoins on the market is increasing, but the only way to increase the pool of money is by using them virtually. This involves connecting the computer to the bitcoin network. The system generates a random complicated cryptographic puzzle and waits when it gets a solution from one of the users from around the world. The higher the computing powers of a computer, the greater the chance that we may receive a reward.

You cannot get more than 25 coins at a time, so mining bitcoins is a long process, and when 21 million bitcoins are extracted, the system will stop generating them—money increases as in a geometric series. In 2013, half of the total planned effort was created. In four years, it will be three-quarters of the planned pool. 

Bitcoins are listed on several online stock exchanges, but the rate is subject to constant dynamic fluctuations, so you can make a lot on Bitcoins in a few days, but also lose a lot.

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