Although the history of Bitcoin is short (it emerged in 2009), a lot has happened since its launch. Its creation has always been surrounded by a certain halo of mystery, since it is not known who created it. Satoshi Nakamoto is just a pseudonym used by the person or people who gave birth to the project.
But still today 12 years after its creation, Bitcoin is not entirely mainstream. Many have been surprised that the creators of the ramsonware that affected Telefónica and other companies wanted to charge in Bitcoin. We are going to explain everything about this coin.
Bitcoin, technology and economy
Bitcoin is a very curious technological idea. By combining computer networks, cryptography and software, it is possible to create a fully distributed virtual currency, without the need for a central entity to issue and control it. twelve years later crypto is still resilient and Bitcoin usage has exploded.
The economy behind this currency is the same as the one behind anyone else: scarcity and trust. That is, there is a solid base for a Bitcoin to cost money, at least as solid as the one that sets the prices of gold.
And although Bitcoin was the first cryptocurrency there are many others. It is true, Bitcoin is still the most popular although lately others like Ethereum are rising in value due to other value-added services they offer.
Bitcoin, how to get them
It is clear that if we want to obtain euros, it is enough to work in a country whose currency is euros or go to a currency exchange office. But how do we get Bitcoin? Certainly not working, since it is not official currency in any country in the world.
The beginnings of any coin are complicated. There has to be an issuing bank, people have to trust and accept the currency and little by little it is being put into circulation. On the other hand, with Bitcoin there is no issuer, the distributed computers that ensure that the transactions are correct obtain, from time to time, coins as a prize. This is called mining, and it is the way money is created with Bitcoin.
But before we put our computer to work to create money I have to say that mining is crazy right now. Those who make money with this technique have clusters of computers with dedicated graphics cards and in areas where electricity is cheap or even subsidized. Making money from mining is a thing of the past.
So? Where do we get Bitcoin from? Well, as in the real world, in currency exchange houses. On the Internet there are many and they allow us to exchange normal money (euros, for example) for Bitcoins. Coinbase is a fairly popular exchange (and wallet, as we'll see later) site.
Bitcoin, how to save them
Now we come to the big question: how and where are Bitcoin kept? Well, cryptocurrencies like Bitcoin are completely virtual. To access them originally you had to use software. This software allows us to see the balance we have in our account and to make and receive transfers.
The good thing about Bitcoin is that it is an open protocol, there are many software to manage our money. There is it for Windows, Linux, Mac, Android, iOS ... I personally recommend taking it on your mobile and within Android I like Android Wallet.
Bitcoin, price swings
Now it may seem that Bitcoin is very expensive, more than 40,000 euros to change. And that is not a good time to invest in it. But in the past we have already seen similar moments, and the advice should be the same: be careful because it is a rather speculative good.
Bitcoin has suffered many bumps along the way. The first was the closure of the Silk Road, an illegal exchange market that the FBI closed in 2013. Transactions were made with Bitcoins and the price plummeted.
