What is Bitcoin?

Simply put, bitcoin is a type of digital currency that is decentrally controlled and not managed by any central or government entity.
All the currencies that you and I use today, such as the rial, the dollar, the euro, etc., have all been created by one country and government for the use of the people. The value of each currency, the amount of banknotes printed, and ultimately the total amount determine by governments. These terms and conditions are different for Bitcoin. But naturally there are questions such as what does this digital currency mean at all? Where did it come from? How does it work? Who provided it? How to buy it? How can it be maintained? Are there other digital currencies? If so, how is it different from Bitcoin?

Is Bitcoin a digital currency? So what does this sentence mean?

Money issued by governments typically has a central bank backing, which is usually of great value (such as gold). The valuation of the banknotes that are offered is typically based on the same support, but in the case of bitcoin, the situation is completely different, and it is interesting that bitcoin has no support and is not controlled by any government or institution, but bitcoin in general. Digitally and computer codes. You may be wondering, on what basis is its value determined? I must say that by welcoming the people and recognizing it and using it by the people, these things will make this digital currency valuable among the people and nations. Given that digital currencies such as bitcoin have been created in the blockchain world, and that all of these currencies are sent and received for more security than encrypted code, it's better to use “cryptocurrency” instead of “Digital currency ”.

Due to the cryptocurrency of these currencies, it is better to use the word "cryptocurrency" instead of the word "digital currency".

Who created bitcoin?

In 2008, a person named Satoshi Nakamoto came up with the idea for this form of money in an article called (White Paper). The identity of this person is still unknown, and the name Satoshi Nakamoto is merely a pseudonym by which everyone knows the creator of Bitcoin. According to Satoshi Nakamoto, the main reason for this plan was the weaknesses in financial issues in the traditional way. . You use your money for various tasks such as buying, transferring, saving and moving, and so on. You need an intermediary or a trusted third party to do all this work. Today, all over the world, these institutions are intermediaries of banks and financial institutions. All financial transfers are done under the supervision of the bank where your money is located, and these intermediaries charge you a fee to carry out your transactions and activities.
Today, trust in these financial institutions has become a bit difficult despite events such as the closure of financial institutions, the bankruptcy of banks, and the complexity and time-consuming nature of their administrative processes. On the other hand, political and economic events may affect the value of your money. In this regard, Bitcoin is designed so that your money is not controlled by any center, this is not a bank, but its bitcoins and transactions are stored in a gaming network called Blockchain, which is run by people around the world. It becomes.

How is Bitcoin created?

When Bitcoin was created in 2008, its creator took over about one million of this cryptocurrency and began exchanging this monetary network. In the Bitcoin network, anyone is able to create a transaction and the amount of the bitcoin Transferred to him and the owner to another person, but in order to prevent fraud and double transaction (double spending), there are people who check the accuracy of these transactions in the blockchain They use computers to authenticate transactions, which is the process of performing a transaction. Of course, do not think that these people are specifically selected or operate as a company. You too can be one of these people and somehow serve the network and receive your reward. The rewards that these people receive are in the form of Bitcoin Amy. So by saying this, we understand how bitcoins come into being.

Who is a bitcoin miner or miner?

People who serve the Bitcoin network and approve transactions are called miners. Miners will be rewarded with a special number of bitcoins (which changes every four years) for their computational work, which currently stands at 12.5. The bitcoins that the miners receive from the reward system are actually generated as new bitcoins and do not belong to anyone, hence the act of obtaining bitcoins by performing calculations to validate the extraction network transactions. You may be wondering why they chose the name extraction for this operation ?! When you hear about mining, perhaps the first thing that comes to mind is the extraction of gold and precious metals in the mine, and you know for sure that it is very difficult. Some people work hard in the mines and extract gold and precious metals. Because it is not easy to verify bitcoin transactions due to the existing encryption and requires very powerful computers with high processing power, so they chose the name mining for this.

How does Bitcoin work?

Everyone who serves the Bitcoin network in the world has a copy of the network and all the transactions stored in their system and will be able to confirm the transactions. This is called mining and these people are called miners. You may be interested in being a miner too! All you have to do is get the hardware you need to do this, as the Bitcoin Mining Calculator can give you good information.

If you have ever wanted to send money to someone abroad, you must have encountered some problems. The complicated process of converting money, costs and fees, and the time it takes to make your transfer must have been tedious. With Bitcoin, these steps are very short, and your transaction is done in less than a few minutes and with almost a small fee from one country to another. So in general, it can be said that bitcoin includes a number of servers that perform authentication and transaction registration operations, which allows your transaction to be done and your bitcoins to be transferred.

What are the features of Bitcoin?

All transactions are stored in the Blockchain network and everyone can have a copy of it and watch all the transactions. This creates two major benefits for Bitcoin:

• 1. Transparency; Which prevents violations that were committed in the usual way behind the scenes.

• 2. Security; Because if someone wants to manipulate the network, other people, who also have the original version of the Bitcoin network, will realize this, and it will be practically impossible to do so.

In addition to all these features, we can also point out that Bitcoin is a digital currency that has no physical nature. At first glance, this may seem strange, but if we are a little more careful, we will find that we use much fewer banknotes today, and we do almost everything with bank cards. The choice of digital method also contributes a lot to the environment and the huge costs of producing banknotes.

What will be the future of Bitcoin?

Today's modern and digital world is trying to choose and produce the best way to solve the vital problems of today's human beings. Bitcoin and other digital currencies are revolutionizing the world by opening new doors to the world of technology and financial technologies. As less cash is used today, and bank cards are often used for payments, it can be seen that the world is moving towards digitalization, and bitcoin and other digital currencies play a major role in this regard. Play. So long-term investment in it can be a good option. Of course, there are various strategies such as long-term and short-term investment that you can consider choosing the strategy you want.