What is bitcoin and what is it for?

Bitcoin is a word we've heard a lot over the years. The so-called virtual currency par excellence has been gaining much notoriety. It is the first Internet currency launched, and during this time it has not been without problems and controversy. But what exactly is Bitcoin?

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What is Bitcoin and what is it for?

Today we explain what Bitcoin is, also what they are for and how they work. In this way we can have a good idea about what this cryptocurrency is, and what it has meant in Internet payments. Do you want to know more about Bitcoin? We explain everything below.

What is Bitcoin?

Bitcoin is a cryptocurrency. This means that it is a virtual currency and also an intangible one. That is, it is not something physical, so we will never be able to touch it. It only exists as a means of payment, mostly in payments over the Internet. Unlike physical coins and notes, it is not tangible, but we can use it as a means of payment in the same way as the previous two.

The origin of the coin dates back to 2009. It was in this year that Satoshi Nakamoto, a pseudonym for a group of people (according to rumors) decided to launch an electronic coin. The key to this currency was that it was only going to be used to make payments or transactions on the Internet. Bitcoin's name has a double meaning. On the one hand it is the name of the novel, but also of the protocol and the P2P network on which it is supported. As with the standard money we have in our checking account, Bitcoin can increase or decrease. If we make expenses or obtain income, it will vary. But, at least so far, there is no possibility to withdraw them from an ATM.

If you want to obtain Bitcoin you must go to the usual markets in which it is traded. The main one is its own website, and you can also do it through MtGox. They are the two main portals.

What makes Bitcoin different?

Like the rest of cryptocurrencies, Bitcoin is not created and controlled by an institution or government. Decentralization is one of its main characteristics. Therefore, there is also no planned production that can affect its value. Bitcoin is produced based on the existing supply and demand in the market. In addition, they are an international value, making it possible to use it in all countries of the world.

Also there are no intermediaries. Transactions with Bitcoin are made at all times from user to user. This absence of so-called intermediaries prevents an institution from controlling or manipulating its value. Although it should be noted that the value of Bitcoin fluctuates constantly. In fact, currently your 1 Bitcoin costs approximately 2, 500 euros. Although its value changes regularly. Three years ago its value was 475 euros, so it has multiplied by 6 in just three years. And it will continue to oscillate for quite some time, at least that seems to indicate.

What is Bitcoin for?

The idea of ​​Bitcoin is to be able to make online payments. There are more and more websites that accept payment with Bitcoin, especially in countries like the United States. Although it is a trend that is expanding worldwide. Initially, they were little known shops or online stores, or that many considered were doing somewhat obscure businesses.

But with the passage of time the number of web pages that accept Bitcoin is greater. There are some really popular today. We can make payments with Bitcoin in the Dell online store in the United States. Also in Microsoft, to buy digital content. You can even book your holidays in Destinia paying with Bitcoin. Even a Spanish real estate agency allows you to buy or rent a house paying with the popular virtual currency. It can be risky, but accept it.

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Bitcoin has also come to the real world. There are some shops in Madrid and Barcelona that accept its use. But it is something that is just beginning. We also do not know if it is a trend that will continue over time.

Bitcoin has been surrounded by many controversies in its development. It is the official means of payment in illegal online businesses. From the purchase of arms or drugs to money laundering. It is the favorite currency of criminals. Despite its enormous popularity in these markets, the virtual currency par excellence maintains its popularity. We will see how it advances in the market, and if we see it in physical stores in the future. What do you think about Bitcoin? Have you ever used it?