That is to say ! And the world is already divided between two camps: the one who sees bitcoin as a revolutionary new invention, and the one who sees it only as a big joke. Café de la Bourse explains what bitcoin is, the issues associated with its technology, its role and its place today.
Despite its very geeky image, in Cabo Verde Email List 2015, the regulator of the commodities market in the United States, the Commodity Futures Trading Commission (CFTC), officially declared that bitcoin falls under the category of commodities. It is therefore a first step towards regulating virtual currencies. Financial transactions in bitcoin and trading on specialized platforms must now be carried out in accordance with the rules governing the exchange of raw materials.
Today, the art major banks are also looking to make the most of the financial potential of the Blockchain , Bitcoin technology in order to save money on financial transactions but also to set standards across the financial industry .
Bitcoin is an intangible currency, or cryptocurrency , which allows its holder to buy goods and services on the internet. Unlike conventional currencies, bitcoin does not have a central bank or any central body. Instead, bitcoin relies on a vast over-the-counter network on the internet.
Who created this cryptocurrency called Bitcoin?
Bitcoin is in a way the result of the marriage between the idea of a P2P network (over-the-counter), cryptographic techniques and the concept of money. As a result, bitcoin may be creating a new kind of financial system, completely decentralized, completely free.
Bitcoin is the work of a genius who calls himself Satoshi Nakamoto. That’s all we know. It could be a man or a woman. It could even be several people, no one knows.
What does the Bitcoin payment method look like?
A bitcoin consists of a private key and a public key. The public key is made up of 34 alpha-numeric characters starting with “1” or “3”, of the style 1. The private key acts as an electronic wallet. This one is anonymous.
The private key is made up of 51 alpha-numeric characters starting with the number 5. It is required to transfer bitcoins to another user on the network.
How many Bitcoins are in circulation in the world?
At the time of writing, there are around 16 million bitcoins in circulation in 2016 (up from 10 million bitcoins in 2013), for a money supply of around $ 6 billion in 2016 (up from $ 1 billion in 2013). ).
The amount of bitcoins in circulation is set automatically by a network of computer servers, called miners, scattered around the world. They are responsible for confirming transactions and adding them to a decentralized transaction log. The volume of bitcoins in circulation will reach precisely 21 million units in 2140. This is what the algorithm predicts.
How are Bitcoins produced?
A victim of its own success, the Bitcoin network, in its current configuration, will soon saturate, which risks causing both traffic jams and degradation of service. Faced with this danger, a solution seems to be in order: introduce technical innovations in order to allow the network to absorb more traffic.
Bitcoins are “excavated”, following a predefined algorithm. They are found in lots of 25 units, and reward the efforts of calculation aimed at finding the solution to what is very similar to a random mathematical problem.
The role of the algorithm is to ensure that the progress of the bitcoin stock is slower and slower, halving the reward every four years. Thus, at the beginning of 2017, the reward fell to 12.5 units. At the same time, the level of difficulty of the math problems to be solved increases over time, causing the rewards to become more distant.
The algorithm was designed so that bitcoin behaves exactly like a scarce commodity whose exploitation offers diminishing marginal returns. A bit like gold or oil, for example (easy and cheap to find at first, then more and more difficult and expensive).
To mine bitcoins, it takes more and more time and resources (computing power, hardware, developers). Result: although virtual, the supply of bitcoins is constrained. The algorithm thus gives bitcoin immunity against inflation.
In this, bitcoin is the complete opposite of the Linden dollar, the currency of the Second Life online virtual world (remember?). The latter is produced by a central authority, a de facto monopoly, at its will, without any limit.