Since the creation of Bitcoin in 2009 by the mysterious figure of Satoshi Nakamoto, the electronic currency has made a big impact in the digital world. In addition to being fully decentralized and controlled by Internet users (like you and me), Bitcoin works as the standard currency, in the sense that these "currencies" can be used for anonymous purchases and even online transactions.
Bitcoin is a type of digital coin, designed in 2009 by Satoshi Nakamoto. This electronic currency operates like printed coins (dollars, euros or yens, for example), since you can use bitcoins to buy things electronically. However, unlike standard currencies that are printed and monitored by central banks, bitcoin is completely decentralized and is created, stored and used by people and businesses. In fact, that's the main idea behind Bitcoin's conceptualization. Coins are completely independent of any central authority, are electronically transferred and have a very low transaction fee.
There are four main ways to get bitcoins: buy them in a market, through transactions and through mining (miners or block chains) or Bitcoin faucet.
Currently, several markets called Bitcoin markets allow people to buy or sell bitcoins. These markets are located around the world and accept any type of standard currency. Some of the most popular online markets are Bitquick, Coinbase and Mt. Gox, among others.
Bitcoins can also be purchased per transaction. People can send bitcoins through mobile applications or computers. The process is very similar to electronic money exchange.
The extraction of bitcoins uses computers that perform mathematical calculations for the Bitcoin network, in order to confirm transactions and improve security. As a reward for their service, bitcoins miners charge fees for the transactions they confirmed, as well as for newly created bitcoins. Extraction is a competitive market where revenues are divided by the number of calculations.
It is important to take into account that, in fact, these currencies are not an unlimited currency. The Bitcoin protocol specifies that extractors (or miners) can only produce 21 million bitcoins, although the coins can be divided into smaller parts.
Like a standard digital transaction, a bitcoins transaction has three parts: an entry, an amount, and an output. The entry contains the information of the sender; The amount is how many coins are exchanged; And the output contains the recipient's data.
Sending bitcoins requires two things: a Bitcoin address and a private key. Like an IBAN (International Bank Account Code) address, a Bitcoin address contains both letters and numbers. These randomly generated series are your account information. The private key is also a randomly generated series of numbers and serves to open the user account and withdraw or deposit coins.
Bitcoins are stored in a digital wallet. These digital purses are acquired by installing a program generated by a single algorithm. Purses are also stored in a cloud service or on a user's personal computer.
Bitcoin purses can be installed on Windows, Linux, Android, Blackberry and Mac. At the moment, they are not available for iPhone.