What is Bitcoin?
Bitcoin is a virtual and intangible currency. That is, you can not play
in any of its forms as with coins or bills, but can be used as payment
in the same way as these. As happens with the money we have in our bank
the Bitcoin increase or decrease our personal account as income or expense
perform, the only difference is that there is no possibility of monetizing,
as when, for example, withdrew money from a ATM.
What are the characteristics that make it different from Bitcoin?
Undoubtedly what makes different from Bitcoin over traditional coins and
other virtual means of payment as Amazon Coins, is decentralization. Or
what is the same, Bitcoin is beyond the control of any government, financial
institution or entity, whether state or private type, such as the euro,
controlled by the European Central Bank or the dollar by the Federal Reserve
USA. In Bitcoin control is performed, indirectly through its transactions,
the users through exchanges P2 P (Peer to Peer Peer to Peer). This P2P
structure and the lack of control makes it impossible for any authority
to manipulate their value or cause inflation producing more. In fact, production
and value is based on the law of supply and demand. Another interesting
detail is that Bitcoin has a fixed limit of 21 million coins, which will
be reached in 2030.
How much does a Bitcoin?
As we have indicated the value of Bitcoin is based on supply and demand,
and is calculated using an algorithm that measures the amount of movement
and Bitcoin transactions in real time. Currently the price of Bitcoin is
located, euro up or down, around 475 euros (to February 13, 2014), although
this value is far less stable since Bitcoin is ranked as the most unstable
currency forex market . For instance, analyzing the period between August
2012 and August 2013, reached a peak value of 134 euros in April 2013 although
early February its value was around only 16 euros. In fact, its value has
increased 600% in the first three months of 2013. Details by which many
experts think that this is a tremendous bubble full of speculators that,
sooner or later, eventually explode.