WHAT IS BITCOIN, HOW DOES IT WORK, WHAT ARE THE DANGERS, HOW TO GET IT?


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In recent years many encrypted virtual currencies have been created on the Web, but the most popular of them is certainly bitcoin. But what is it ? What can this be used for? How to get it? Where to buy and sell bitcoin? A multitude of questions may cross your mind when you are told about this currency and we will try to answer them.

WHAT IS BITCOIN?

It is an encrypted virtual currency that was created in 2009 by a computer developer using the pseudonym Satoshi Nakamoto. The only thing we know about him is that he is Japanese and that he was 39 at the time.

It is traditionally used to buy goods and services between individuals on the Internet, and some companies also accept payments in this currency. It is also possible to convert it into classic monetary currencies like the Euro, the Dollar, the Yen, etc., and it works outside the classic banking system, a kind of mini revolution for those who no longer support the monetary system of our society. Moreover, bitcoin is not regulated by a central bank like the Euro or the Dollar and is not legal tender.

Please note that bitcoin and bitcoin should not be confused. The first is the currency and the second a payment system using this currency.

WHAT IS THE VALUE OF A BITCOIN?
As said before, a bitcoin has no real value and is not governed by any central bank. Nevertheless, there is a course that is not legal. Its fluctuation is quite large. For example in February 2011, 1 bitcoin was worth 1 dollar, in June it was worth 31 dollars then in December 4 dollars. In 2013, it had exceeded the value of gold to more than $1,250 before plummeting.

At the end of 2015, 1 bitcoin is worth around 400 euros. You can follow the progress HERE.

HOW IS A BITCOIN CREATED?
This is very different from reality. To create a bitcoin, you have to generate or “mine” as we say in the jargon to find a bitcoin, a bit like gold diggers except that there it is a computer algorithm that generates it. For this, it is necessary to use very powerful machines. Initially, to mine you needed a powerful processor, then they were replaced by graphics cards that offered performance 50 to 100 times higher. At the time, AMD/ATI cards were the best in this very specific area. Here is a picture of a miner from graphics card.

Mining then turned to FPGAs (Field Programmable Gate Arrays), which consume less energy than graphics cards. After a while, that was still not enough and miners turned to ASIC (Application Specific Integrated Circuit) chips designed specifically to perform only one task at a time – generating bitcoins. This is the latest technology used in the industry and looks like this:

For information, the algorithm generates about 25 bitcoins every 10 minutes and it is almost impossible for an individual to recover, so you can forget about mining right away, because it will cost you a lot of investment for not much. -thing. Moreover, specialized companies which have more powerful infrastructures than that of an individual are already on the spot, so it is lost in advance. You should also know that the stock of bitcoins is limited to 21 million units and more than half are already in circulation. And the worst ? It is that it is more and more difficult to generate BitCoins! The calculation required increases exponentially according to the number of BitCoins already created… At the beginning, we could create 50 BitCoins every 10 minutes, in 2012 it was down to 25 and today we are at 25!

HOW AND WHERE TO GET BITCOINS?
To obtain bitcoins, you must either go through specialized platforms in the field which convert your currency into bitcoin or exchange it between individuals via a Peer-To-Peer (P2P) type platform or more simply by selling objects and services.

Here are some French platforms:

1.paymium (formerly bitcoin-central)
2.bitboat
3.flipcoin
4.mineoncloud
5.lamaisondubitcoin (purchase via the website or in store)
A more complete list is available on the bitcoin.fr website.

However, you have to be very careful since this currency is not subject to any regulations. In February 2014, the Japanese platform MT Gox had to stop all its transactions, because it had just seen around 850,000 bitcoins disappear after a computer hack, which is equivalent to 7% of the total amount of bitcoins in circulation. Customers have almost no chance of getting their money back.

WHERE IS A BITCOIN STORE?
Since this currency is not tangible and is only virtual, it is necessary to have an electronic wallet available in several forms:

software installed on a computer
Bitcoin Core: available on Linux, Mac and Windows, it is the most complete and it is the reference in the field.


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