What is Bitcoin and what is it for

What is Bitcoin and what is it for

Bitcoin — a new currency that was created in 2009 by Satoshi Nakamoto. The word originated from "bit" is a unit of information and the "coin" — coin.
The electronic money arises out of any part of the world where there is Internet. Previously, it was enough to run on your computer a special program and receive bonuses in the form of bitcoins because your computer has decided certain tasks with the program for a long time.

Bitcoin same as cash, always with you and accessible only by password. They can't freeze by the court or by the will of the Bank.
In Russia there are services for the exchange and purchase bitcoins. To spend electronic money will not be easy: this area fans of the currency will have to develop.
A bitcoin you can quickly translate
At the time of payment of the cheque of one Bank through the branch of another, your funds will be kept in the translation system for a few days. This is done for a full conviction, financial and credit institutions in the availability of the amount claimed for translation.

Similarly, work all Bank transfers in the world: the waiting period is 1 to 3 days. Foreign exchange transactions in bitcoin are much faster. For example, the smallest logically meaningful operation is carried out instantly.

In this case, the receiver side acts as the owner of the translation, which is not confirmed at any stage (sending, processing, etc.). For doing business on the Internet it is really easier than using interbank transfers.
To transfer bitcoins cheap
Anyone can dispute the above paragraph that a Bank card can Transact in minutes. Undoubtedly, parry this argument is reasonable, however, one of the parties of the transaction (the recipient or the sender) takes the responsibility to pay for this preferential right.
Some sellers are forced to take a certain percentage of payment and debit payment cards, as required to pay a fee for the transfer of funds. Created Satoshi Nakamoto bitcoin, transactions are not subject to any extra charges, and if subject, relatively small in size.
The state has no right to claim your savings
We all remember the scandal around the Cyprus deposits, the amount of which exceeds one hundred thousand dollars. Then the main governing body of the credit system of the country planned to deprive citizens of their uninsured deposits.
Despite the "good" purpose – to raise capital in the economy of the state, the local population was furious, because the government publicly announced the seizure of family savings. Initially it was said that unregistered will be confiscated the deposits not exceeding 100,000 dollars, reports the portal of Rsute.

With bitcoin you will not have such problems, as the authority in monetary units redeployed in certain organizations and, therefore, to use currency only you can. There are no control authorities and the banks will not be able to claim any part of your capital. This is a huge plus for those who have lost confidence in financial and credit institutions.
Bitcoin payments cannot be canceled
Since the operation, translated to another address bitcoin wallet coins will not be able to return. The sender will not be able to cancel the transaction and return them without obtaining the consent of the recipient. This is a sure way to protect against financial scams are making a purchase by credit card, ask the Issuer with a request to cancel the operation, thereby interrupting the transaction.
Reliable protection of your personal data
It is worth paying attention to. A huge number of online shopping is done through credit card payment. However, in the not so distant past – 1920-30-ies – the credit card you used otherwise, because of the global network even thought.
And rightly so, because to use such payment instrument in the network, is unreliable and fraught with negative consequences. By making a purchase on the Internet, you must enter your personal data: card number, special code, and more. It's hard to imagine an easier way to obtain personal data of a stranger.
Transactions in virtual currency bitcoin does not require disclosure of personal data, as the system of two keys: a public key and personal. The first (outdoor) is open to anyone who knows your wallet's address, the second (personal) – known only to you.
During the transfer, you are "numbered" a transaction through the two available keys and invented by you digital function. This is to ensure that the transaction is conducted on your behalf. Your money will be kept in a safe place until, until you make a mistake – manifest a personal key.
Bitcoin is not subject to inflation
The problem of conventional money (the nominal value of which is established and guaranteed by the state, regardless of the cost of oil) that the government has the right to issue banknotes in unlimited quantities. If you can't afford to pay off the national debt in the U.S. currency, the government just print them.
Even if the economic condition of the country is at the stage of collapse, the government can inject these funds into circulation. This affects the quote currency. If in this way the doubling of the number of dollars in circulation, then the following will happen: chocolate worth 1$, will increase the amount by$ 1, because the first dollar lost half its value, while the seller of chocolate as something you want to save your income.
This is inflation that has increased the cost of goods, and which is almost impossible to control.
Bitcoin is different – it has a certain amount of money (coins). So, "to" more than 21 million BTC quite impossible: once your balance has reached a peak, to create more bitcoins you will not succeed.

If viewed from the economic point of view, bitcoin is closer to deflation (increasing purchasing power of the local currency, which is manifested in the decrease of the price index) rather than to inflation.
How to make money on bitcoins?

1. Choose the exchange, where the auction bitcoin (one of the largest – BTC-E.com).
2. To create the exchange account (for the registration e-mail, create a username and password).
3. The account is tied to a separate wallet is used for transactions on the exchange (it is created automatically).
4. To refill your account on the exchange bitcoins, dollars or euros using exchange points (mechanism – see "How to sell or buy bitcoin").
5. Follow the movement of bitcoins and carry out transactions: sell when their value grows, and buy when it falls (mechanism – see "How to sell or buy bitcoin").