Bitcoin Basics

Cryptocurrencies and their transfer are generated by hundreds of thousands of hardware devices, which, in general, perform a series of complex tasks related to currency transfer and validation. The more powerful the computer, the faster it happens. 

The first to “solve” the task receives a new block of 25 bitcoins, for example, which are divided between all participants in a “mining” pool. 

The complexity of “digging” increases the more new units are “dug” so as not to cause inflation of the currency. 

It is important to note that the system of “mining” devices also ensures the execution of transactions between consumers who pay and buy with cryptocurrencies.

No one owns the Bitcoin network, just as no one owns the technology that created e-mail. 

Bitcoin is controlled by all its users around the world.

Developers improve network software, but they cannot force a change in protocol because users are free to choose the software and version they use. 

In order to be able to make transactions with each other, users must use software that follows the same rules. Bitcoin can only work with full consensus among all users. 

That is why all users and developers have a strong incentive to defend this consensus.

As we already said, Bitcoin is a completely transparent payment system, similar to most cryptocurrencies. All Bitcoin payments are public, traceable and permanently stored on the Bitcoin network. Bitcoin addresses are the only information used about where Bitcoins are located and why they are sent.

These addresses are created privately for each user’s virtual Bitcoin wallet. Given the fact that consumers usually have to identify themselves in order to receive the purchased goods and services, Bitcoins cannot remain completely anonymous.

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