Cryptocurrencies are more and more popular at the heart of business strategies and banking networks. These alternatives to traditional currencies are talking about them, especially the most famous which is bitcoin. It therefore deserves a closer look. What should I know on the subject? Find out in this article.
What is bitcoin?
Bitcoin is the first virtual currency that was created in 2009. Until then, its inventor remains unknown, but the origin of this name comes from "bit", a unit of measurement used in computing and from "coin" which wants say change in English. Bitcoin is therefore an electronic currency that does not use bills or coins. It is based on a decentralized computer network, which means that it is not dependent on a body like ordinary money.
Computer network users thus play the role of both server and client, hence the notion of peer-to-peer or P2P. The different transactions carried out between the different users of bitcoin are listed and recorded in a blockchain, a kind of computer register. This blockchain uses encrypted transaction blocks that add up to each other. We then speak of cryptocurrency. The price of bitcoin is quite volatile.
Who are the users of bitcoin?
Anyone can become a bitcoin user. Besides, it is very easy to buy Bitcoin via dedicated sites and platforms like Bitvavo, which is attracting more and more people. In fact, according to a study, approximately three million people have accounts for digital currencies, including bitcoin.
What are the advantages of bitcoin?
The use of bitcoin has many advantages according to users:
Safety and reliability
The currency is secure and reliable; it leaves no room for piracy. Indeed, the system on which the bictoin is based allows the realization of encrypted and tamper-proof transactions. It is impossible to modify a transaction once on the blockchain, because it would be necessary to modify on all the computers of the computer network. Thus, using virtual money is very safe for users.
Bitcoin is an independent currency, that is, it does not depend on a bank. It is managed only by users who appreciate this autonomy. Moreover, this is also one of the reasons why bitcoin is criticized by some: it is not legally framed.
Another advantage of bitcoin is the anonymity it provides. Users particularly appreciate the fact that they make purchases without having to leave personal information such as name, address, email, bank account, etc. This means of payment avoids leaving traces. And thanks to the bitcoin wallet, buy directly from your virtual wallet.
In its early days, bitcoin was primarily used for online transactions, but these virtual currencies are now accepted by some merchants. Even companies and brokers are increasingly using cryptocurrencies in search of funding as an alternative to the stock market and as a means of payment. A new cryptocurrency has also recently emerged: bitcoin cash. It has the same principle as bitcoin, but with a few changes that make it more efficient, especially for a trader.