Bitcoin is a network that works consensually where it was possible to create a new form of payment and also a new completely digital currency. It is the first decentralized payment network (peer-to-peer) where users manage the system, without the need for intermediary or central authority. From the user's perspective, Bitcoin works like money for the Internet. Bitcoin can also be seen as the most promising triple entry accounting system available.
Who created Bitcoin?
Bitcoin is the first implementation of a concept called “crypto-currency”, which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses encryption to control its creation and transactions, rather than a central authority. The first specification of Bitcoin and proof of concept was published in 2009 on an encryption list by Satoshi Nakamoto. Satoshi left the project at the end of 2010, without revealing much about yourself. The community has since grown exponentially with many developers working in Bitcoin.
Satoshi's anonymity often raised unjustified concerns, many of which are linked to misunderstanding of bitcoin's open-source nature. Bitcoin protocol and software are published openly and any developer worldwide can review the code or make their own modified version of bitcoin software. Just like current developers, Satoshi's influence was limited to the changes he made being adopted by others and, So, it didn't control Bitcoin. As such, the identity of the inventor of Bitcoin is probably as relevant today as the identity of the person who invented the role.
Who controls the Bitcoin network?
No one owns the Bitcoin network much as no one owns the technology behind the email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in bitcoin protocol, because all users are free to choose the software and version they use. In order to remain compatible with each other, all users need to use the software in accordance with the same rules. Bitcoin can only work correctly with a full consensus among all users. So, all users and developers have a strong incentive to protect this consensus.
Bitcoin is a bubble?
A rapid increase in price does not constitute a bubble. An artificial overvaluation that will lead to a sudden downward correction constitutes a bubble. Individual human action-based choices by hundreds of thousands of market participants is the cause for the price of bitcoin to float as the market seeks price discovery. Reasons for sentiment changes may include a loss of confidence in Bitcoin, a wide difference between value and price not based on the fundamentals of the Bitcoin economy, increased press coverage spurring speculative demand, fear of uncertainty and, old-fashioned, irrational exuberance and greed.
Bitcoin is a Ponzi or Pyramid scheme?
A Ponzi scheme is a fraudulent investment transaction that pays returns to its investors with their own money, or with the money of subsequent investors, rather than profits made by the people who manage the business. Ponzi schemes are made to collapse the costs of the latest investors when there are no further participants.
Bitcoin is a free software project without central authority. Consequently, no one is in a position to carry out fraudulent representations about the return on investments. Like any other coin like gold, the Us Dollar, Euro, Yen etc., there is no guarantee that the acquisition power and exchange rate fluctuate freely. This leads us to volatility, where bitcoin owners can unpredictably do, or lose, Money. In addition to speculation, Bitcoin is also a form of helpful payment and competitive attributes being used by thousands of users and businesses.
How bitcoins are created?
New bitcoins are generated through a competitive and decentralized process called “Mining”. This process consists of the reward given to users for their services. The “Miners” bitcoin are processing transactions and making the network secure using specialized hardware and collecting new bitcoins in exchange.
The Bitcoin protocol was designed in a way that new bitcoins are created in a fixed proportion. This makes bitcoin minerace a very competitive business. When more miners join the network, it becomes increasingly difficult to generate profit and miners need to seek efficiency to cut their operating costs. No central authority or developer has any power to control or manipulate the system to increase its profits. Every Bitcoin node around the world will reject anything that does not conform to the rules that the system is expected to follow.
Bitcoins are created at a decreasing and predictable rate. The number of new bitcoins created each year is automatically halved over time until the broadcast is completely suspended with a total of 21 millions of existing bitcoins. At this point, Bitcoin miners are likely to be borne exclusively by numerous small transaction fees.
How bitcoin mining works?
Anyone can become a Bitcoin miner running software with specialized hardware. Mining Software listens to transactions transmitted over the peer-to-peer network and performs appropriate tasks to process and commit those transactions. Bitcoin miners do this work, because they can earn transaction fees paid by users for faster processing of transactions, and new bitcoins are issued according to an existing fixed formula internally.
For new transactions to be committed, they need to be included in a block along with a mathematical proof of work. Such evidence is very difficult to generate because there is no way to create them except by trying to perform billions of calculations per second. This requires miners to perform such calculations before their blocks are accepted by the network and before they are rewarded. As more people start mining, the difficulty of finding new valid blocks is automatically increased, to ensure that the average time to find a block remains equal to 10 Minutes. As a result, mining is a highly competitive business where no miner can control what is included in the block chain.
The workproof is also designed to depend on the previous block to force a chronological order into the block chain. This makes it exponentially difficult to reverse previous operations, this requires the recalculation of the work tests of all subsequent blocks. When two blocks meet at the same time, miners work on the first block they receive and display the longest chain of blocks as soon as the next block is found. This enables mining to ensure and maintain a global consensus based on processing power.
Bitcoin miners are not able to cheat, increasing your own reward, or process fraudulent transactions that could corrupt the Bitcoin network, because all Bitcoin nodes would reject any block containing invalid data according to the rules of the Bitcoin protocol. Consequently, the network remains secure, even though not all Bitcoin miners can be trusted.
How mining helps keep Bitcoin safe?
Mining creates the equivalent of a competitive lottery that makes it very difficult for anyone to consecutively add new blocks of transactions in the blockchain. This protects net neutrality, preventing any individual from gaining the power to block certain transactions. This also prevents any individual from replacing parts of the blockchain to reverse their own spending, what could be used to defraud other users. Mining makes it exponentially more difficult to reverse a past transaction, requiring the change of all blocks following this transaction.
What Do I Need to Start Mining?
In the early days of Bitcoin, anyone could find new blocks using your computer's CPU. When more and more people started mining, the difficulty in finding new blocks has gradually grown to the point that only specialized hardware with great cost-benefit mining is used today.
Mining Hardware Examples:
AntMiner S7
- 4.73 Th/s
- 0.25 W/Gh
AntMiner S9
- 13.5 Th/s
- 0.098 W/Gh
Avalon6, New Year
- 3.5 Th/s
- 0.29 W/Gh
Where can I purchase BITCOINS?
It is possible to buy Bitcoins through direct selling P2P, Bureaux de Change (Exchanges, New) and via Credit Card on authorized websites.
To purchase with a credit card go to the website: https://bitcoin.mdinvest.nl/#comprarvenderbtc
To buy with deposit in Reais you can access the following exchange offices.