What are bitcoins?

Bitcoin is the currently most important virtual, decentralized currency in the world. Translated, Bitcoin means "digital coinFor many experts, bitcoins are the means of payment of the future and are intended to completely replace conventional means of payment. 1 Bitcoin is currently worth $ 7.500, the high was $ 20.000 in January 2018. Only a few experts doubt that this value will be reached again and even exceeded .

What are the advantages of bitcoins?

  • Low transaction fees: International transfers in particular are often extremely expensive. Depending on the load on the network, a Bitcoin transfer is many times cheaper
  • Fast transactions: A Bitcoin transaction is extremely fast compared to conventional wire transfers. Depending on the load on the network, a transaction is completed within a few seconds
  • No banks necessary: No banks are required for transactions (more on this below)
  • Forgery-proof: Bitcoins are absolutely counterfeit-proof due to the underlying technology
  • Anonymous transactions: For a transfer between 2 people, only the address of the wallet (digital wallet) is required. No name, IBAN or similar is required. However, transactions are not completely anonymous, because the addresses of the wallets are publicly available.

A revolution comparable to the internet?

In the 1990s, many experts disagreed which, and above all, whether the Internet would be of any use to society in the future. Just as many wondered at the time "What is the internet", many people wonder today "What are bitcoins?" Everyone knows what the result of the Internet was. For many recognized experts, bitcoins and blockchain technology are said to affect people's lives just as the internet did. The current Bitcoin rate is approx 4.000 $. In a few years, a Bitcoin is estimated to be from $ 50.000 to $ 1.000.000 Be worth.

Why buy bitcoins?

The concept of bitcoin was first introduced in 2008. The white paper, which contains the idea behind it, was published by an unknown person or group called "Satoshi Nakamoto". Bitcoins serve as currency in a network in which all users are equal and which does not require intermediaries such as banks. Transactions are processed and verified via this digital network. However, the data is not stored on a central server, as is currently the case, but rather distributed across a large number of computers - i.e. decentralized.

For better understanding:

  • In a normal transaction, I transfer money to a friend. However, I do not transfer this money directly to his account, but first reaches a middleman - usually the bank. The bank accepts the money and transfers it to my friend.
  • With Bitcoins, it works as follows: Everyone has their own digital wallet, which has an address. From this wallet you can send bitcoins directly to another person. So I'm transferring money to my friend directly on his wallet, without which a middleman is needed. The transaction is carried out and checked using blockchain technology.

How do bitcoins come about?

The number of bitcoins is mathematically limited by the inventor, which is very important for the stability of value. There will never be more than 21 million bitcoins.
These arise through mining, "mining". This may sound very physical, but it is a purely digital process in which bitcoins are calculated using CPU and GPU energy by solving cryptographic tasks. (So ​​a math problem is solved). So theoretically everyone can calculate Bitcoins with a computer. With a conventional PC this can take many months.

Where and how can I buy bitcoins?

Nowadays, bitcoins can easily be found on large exchanges such as Coinbase to be bought. Coinbase is particularly user-friendly and is ideal for newcomers. You can pay very easily by bank transfer or credit card. If you want to be sure when buying and want to avoid mistakes, we have them Step-by-step instructions put together for you: How to Buy Bitcoins. Register now with our link (click here) and get $ 10 free starting credit 🙂

You're still wondering: "What are bitcoins?" Then we have one for you here easy-to-understand video by IOTA founder Dominik Schiener:

Do you need help with these issues?

What is a bitcoin?

Bitcoin is a digital, decentralized currency. Learn more!

How do I buy bitcoins?

A very simple step-by-step guide!

The crypto lexicon

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Passive income with crypto

With cryptocurrencies, it's easy to generate residual income. Find out how!

How can I switch bitcoins to other cryptos?

Click here to find out where you can change bitcoins?

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