Bitcoin, since the first time it appeared this currency has generated doubts about its fast expansion and due to the fact of not being subject to any banking control or physical backup, as any other currency in the world.
The word bitcoin still does not exist in the dictionary. But increasingly often heard in the voice of economic analysts and financial columnists around the world. But what bitcoin represent and how does the 21st century currency work?
About bitcoin and how does it work?
The Bitcoin, a virtual currency which belong to no particular nation. Which allows it not to exists regulated or controlled by any bank or financial institution. Traditional currencies (such as dollar or euro) issued by monetary authorities or governments. Such entities can exercise control over dollars and euros, but not the case for BTC.
Basically a btc, considered a string of encrypted numbers which conform to an algorithm. Can run executed by valid currencies. These codes associated with an address which indicates to whom the virtual currencies belong to. But anonymously, since the owners of the bitcoins only know to who belong the address and transfer them very simple through INTERNET. Same as done with the ’emails’.
Who creates the bitcoins?
Bitcoins, generated on Internet by users known as ‘miners’. In financial jargon. ‘Mining’ BTC described like the process of performing mathematical calculus using compute power to confirm such transactions. In exchange, the ‘miner’ will be rewarded with certain amount of bitcoins to continue investing, buying or paying with this electronic currency online or regular establishments.
The value of a bitcoin?
Because this virtual coin works in a way of payment method, retains its value for supply and demand, when the latter increases, the price goes up, and vice versa. To know the current price of the btc you find several calculators online. Which allows us to know how much it costs depending on the city and the type of exchange needed.
According to the Spanish Bank BBVA Bancomer. Today about 11 million of BTC currently in circulation. And very expected by the year 2041 such figure might reach 21 million of electronic currencies in the world. Creation of the Bitcoin, back in 2009
Should be noted,
Since the creation of Bitcoin, back in 2009, its value has multiplied by about 50 times. And became more reliable and stable than traditional currencies. When closing this article, a bitcoin value equals to US $6,667.
Only in 2016 the BTC exceeded the value of all the currencies emitted by the banks and, even in March of this year, it surpassed the price of gold on a worldwide level.
The financial market has well received bitcoin. So much so, on May 22, the word btc took place ‘Top 5’ in Google searches in U.S., and in the ‘Top 10’ of the same search engine in Mexico and Canada.
The future of Btc
The use of this currency provoked countries like Japan to jump in to the current of BTC. This year at least 250,000 stores expected to receive such legitimate transactions in June or July. Mexico, one of the countries in Latam, has seen an place of opportunity in this sector.Bitso, the Mexican company, a very good example of this. At the end of 2016 it had captured about 30,000 new customers. Just in 27 months 20,000 Of them had joined the company in the last quarter of such year.
While Donald Trump was crowned President of United States and a Ford car plant abandoned his project. In the Mexican state of San Luis Potosi, Bitso had a great day and nor the political neither the economic environment affected it at all, unlike other currencies.
Less vulnerable to cyber attacks
The market so-called ‘cryptocurrencies’ or ‘cryptocoins’ much less vulnerable to cyber attacks. Unlike Dollar or Euro, which recently were affected by the WannaCry virus. A computer worm which was in charge of encrypting the files on a computer and calling for a ransom payment before allowing access to them again.
The future of bitcoin lies in such kind of crisis. It proves the reliability of technology and places an innovation place for opportunity and growth for the financial realm. Which in recent years has found greater penetration through digital platforms and electronic payment methods. For instance, in places communication and profitability of traditional economic systems managed.