By Carlo Caloisi – Sep 14, 2022
A peculiar feature is that it does not have a central bank behind it that distributes new currency, but is basically based on two principles:
- a network of nodes, i.e., PCs, that manage it in the peer-to-peer mode;
- the use of cryptography to validate and secure transactions (blockchain technology) safe from hackers.
There are 21 million Bitcoins available on the net (those designed by Sakamoto in 2009), while those actually in circulation are just over 19 million at present. There is also a probability that those lost are about 3.5 million .
In order to purchase them, it is necessary to open a virtual wallet/account (e-wallet), after which it necessary to connect to the many sites that offer it in exchange for money (payment by bank transfer, poste pay, etc…), but it can also be exchanged or spent.
Since it is virtual money, it can be stolen (for example, by a hacker attack) or lost (malfunction of the pc hard disk). In order to prevent its loss it can be insured, a kind of safe deposit box guaranteed by a London company (the Elliptic Vault)
It is currently legal tender in two sovereign states, more specifically El Salvador and Central African Republic.
SOURCES AND IN-DEPTH ANALYSIS
- What is it? How to mine, buy, and use it: https://www.investopedia.com/terms/b/bitcoin.asp ;
- How Many Are There Now in Circulation?: https://buybitcoinworldwide.com/how-many-bitcoins-are-there/ ;
- Wikipedia – Definition: https://en.wikipedia.org/wiki/Bitcoin ;
- White paper – Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto, 2009: https://bitcoin.org/bitcoin.pdf ;
- In Central African Republic is just approved as an official currency. El Salvador’s experience shows it may be a bumpy ride: https://fortune.com/2022/04/28/central-african-republic-approved-bitcoin-official-currency-el-salvador-bumpy-ride/
- Blockchain: https://www.ileaderprojecterasmus.eu/2022/09/14/blockchain/
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