Bitcoin code – what is it?

The hype surrounding the cryptocurrency Bitcoin code continues unabated to this day. How Bitcoin code are created and what distinguishes the currency of other currencies, but few know.

Bitcoin code – what is it?

Bitcoin code are digital currency units. Users can transfer these Bitcoin code via software with each other – to pay each other. The advantage: the currency is independent of the central banks, anonymous and decentralized.

Unlike banknotes and coins Bitcoin code are not printed or embossed, but made remotely via a computing process. This process is called “mining”. The so-called block chain technology is used – an encrypted database in which all transactions are stored.

Bitcoin code are made up of combinations of numbers and letters that are combined into a data packet. At first it sounds a little strange: a currency that is based solely on data packets and works without notes and coins. but the transactions from one account to another work in a similar basically. In cashless payments, such as online banking in euros, and data are sent and no bills or even gold.

How well do you know your way around with Bitcoin code?

Differences to classical Currencies

Although one can compare such transactions very good, there are important differences to traditional currencies. Advocate of Bitcoin code see in the virtual currency a response to the financial crisis of 2009.

The aim had been to create an independent of governments and financial institutions payment. Thus are not Bitcoin code under government influence. Also, the exchange rate is not bound or regulated. In addition, the money supply is mathematically limited: More than 21 million Bitcoin code will not exist.

Another difference is that transactions can be handled anonymously. Senders and receivers of payments can not be determined in doubt. Therefore Bitcoin code delight in the dark corners of the Web great popularity and are also linked repeatedly with money laundering and drug stores.

Development of Bitcoin code course

Are Bitcoin code a safe alternative to ordinary money or a dangerous speculative instrument? In is controversial. The exchange rate can be exchanged with the Bitcoin code in classical currencies fluctuate sometimes sharply. In September 2017, the cryptocurrency reached its record high with a score of 4,980 US dollars.

There is now for companies is also the possibility, in addition to a traditional IPO, a so-called ICO – almost a crypto-IPO – perform. Here, the company registered capital obtained in the form of Bitcoin code.
China sees these IPOs to be dangerous and would therefore like to regulate more in the future or even ban. This in turn led to a sharp drop in the Bitcoin code price.

In Germany Bitcoin code are not prohibited, but warns Carl-Ludwig Thiele from the Bundesbank in Handelsblatt “. Because of their construction and due to the great volatility Bitcoin code are highly speculative” How volatile is the course, showed up in recent years. Shortly after the introduction of cryptocurrency could exchange a Bitcoin code to about $ 10. Today, the price is just under 3,900 US dollars, has thus given way again by around 20% since its all-time high in early September. Even within one day the rate fluctuates in part strong.

Of interest is the distribution of money in the accounts. According Statista there were about 14 million Bitcoin code accounts in February 2017th To about 7.7 million of them, however, less than 0.001 camped Bitcoin code.

Beyond the internet Bitcoin code can be used as means of payment in some places. Meanwhile Bitcoin code machines have already been set, for example, in a coffee shop in Vancouver and a subway station in Helsinki. Also in various bars in Berlin guests can pay with Bitcoin code. As the currency moves in the future, probably no one can predict with certainty – but what do you think?

Comments Off on Bitcoin code – what is it?

Filed under currency