What is bitcoin cryptocurrency for?
In a world where information technology comes first, where books and entire libraries can be replaced with one click in the search engine line, where you can earn and pay for the purchased goods without touching the bills, it has become important to start electronic wallets and have virtual money. At the same time, it is not important to know who makes a financial transaction, it is only important when and how much. That’s why bitcoin was invented – the anonymity of the payment and its transparency.
How did bitcoin enter the market?
First came the electronic signature algorithm. When studying a financial transaction, there is no access to the identity of the person who carried it out. There is also no direct access to cash, as the entire transaction is based on their electronic counterpart. These are the two basic pillars.
To weed out garbage (spam) randomly suitable for operations, the previously developed Hashcash protection system was used in the creation. You have to go through a number of mandatory conditions in any payment system, proving that a payment or withdrawal was made by a non-robot. And the information received using the notification system allows you to immediately monitor the progress of the operation. This algorithm, the complexity of conducting and the ease of control, is also basic in creating a cryptocurrency.
These basic programs were created decades before the development of the electronic currency protocol, which was called Bitcoin. 2009 marks the formation of the first wallet for the first virtual coins. It is noteworthy that the price of one coin was equal to the cost of electricity spent to create it.
Making money in the virtual space seemed like a promising business for a considerable number of PC users. The price for two years was equal to the price of the dollar, after which the rate began to rapidly gain growth.
In 2011, the currency became one of the lots on the exchange market and was invested by many wealthy people.
Popularity also came in 2011 after the official recognition of the currency in the media. Bitcoin was credited with the glory of the financial means of payment of the black market. Its system was penetrated by hackers, reducing the rate at the time of the acquisition. Not without the help of the administration of the US government, it was possible to stabilize the functioning of the cryptocurrency.
Watch a video about what bitcoin is and why you need it.
Why do we need bitcoin cryptocurrency?
To see the benefits, you should read the explanation of why Bitcoin is needed in simple words.
A currency that has no paper equivalent, existing only on the Internet. Its principle of operation is explained by any online game in which it is possible to improve or upgrade the hero. Fulfilling the requirements of the game – you get coins, then you go to the store and spend them.
In the virtual world, there are many services for which you can get bitcoin. There is no trust in the electronic payment system, you can exchange it for the usual money and spend it. But the principle of simple money was excluded from the electronic currency system, achieving the following advantages:
What is a bitcoin wallet for?
Many have become interested in the possibility of earning in cryptocurrency or using it. The general principle of receiving is equivalent to receiving another currency. The only difference is the official opportunity to create a coin within the law, not a single monetary unit is reproduced independently legally.
It used to be easier to mine bitcoin, now even a super-powerful device recreates a coin for a very long time. Simple equipment no longer pulls and can lead to a power surge and create a fire hazard. The apartment does not have the necessary characteristics for mining.
Ways to make money with bitcoins
Some specialists went to the cloud to use remote resources with more power, but the speed of obtaining bitcoin did not increase much. It is easier to use the desired site by constantly visiting it, entering captchas or passing the game. Day after day, you can get cryptocents and accumulate bitcoin, but it’s also not profitable. Even using the labor of 10,000 people who want to earn bitcoin in this way will lead to an income of 1 bitcoin per day.
You can take a risk and get into a financial pyramid, try to double the coin you got on the site-doubler. It is difficult and risky, because it is easier to really earn money.
The volatility of bitcoin gives a greater chance to get rich. A sharp amplitude gives a profit. Exchange traders know how to get it from jumps from plus to minus. Daily jumps have made cryptocurrency an excellent object of exchange trading.
And if there is a starting capital, then you can earn by purchasing a coin and reselling it after a while, when the rate rises. It is impossible to predict with cryptocurrency, because it is not based on any real resource. Only real interest and demand from users. Therefore, no one can know the exact moment of the sale.
Gambling and lucky people earn bitcoins in virtual casinos where you can bet and win coins. The game for electronic currency is available on many sites, if there is something to bet and with the accompanying luck, it is not difficult to earn. But the easiest way is still the passage of an online game that makes it possible to earn up to several thousand Satoshi.
If you set a goal and work non-stop, earnings can be very tangible. So, you will need a means of storing the income received. It must be reliable and convenient.
Such storage can be a laptop, smartphone or personal computer. Or you can get a bitcoin wallet. In the first case, all keys are stored in the device, which is secure, but not reliable in case of loss or breakage. In the second case, there is a moment of trust in some electronic resource, which is more reliable, but the security is not complete.
The risk is always present. If you took a risk and spent a lot of money, effort and time and earned a network currency, then you can risk getting an electronic wallet to store it.