Do you know where the Bitcoin Value comes from?

0 23
Avatar for EduOficial
3 years ago

Bitcoin emerged to take the power of issuing foreign exchange from the hands of governments, which through inflation reduces the purchasing power of savers. This was made possible through a digital currency whose value is determined solely and exclusively by free supply and demand.

Among the characteristics that make Bitcoin desired, we can mention:

Decentralization: there is no institution or group that controls the network, both in terms of development and in the maintenance of daily life;

Security: the network is protected by a gigantic computational effort, distributed among miners and users through their nodes, the full nodes;

Shortages: in the creation of its source code, a progressive and decreasing timetable for issuing new Bitcoins to remunerate miners was defined, with a maximum limit of 21 million coins;

Immutability: once the transaction has been included in the network by a miner, and verified by the participants (full nodes), it becomes irreversible;

Fungible: because it is a digital asset, cryptocurrency is fungible and divisible, that is, it can be divided into small parts, and traded among its participants without losing its characteristics.

Although it is possible to copy the Bitcoin source code, it is very difficult to get the large number of developers, savers, and most importantly, the certainty that the initial rules will be followed by everyone, voluntarily. In summary, alternative currencies (altcoins) can provide other benefits or features, but they are unlikely to achieve the decentralized form that Bitcoin has achieved.

1
$ 0.00

Comments