Bitcoin Is Open Source Software That Runs on Nodes Distributed on The Network



Bitcoin Is Open Source Software That Runs on Nodes Distributed on The Network

On the internet there are many sites that perform an exchange function, exchange currency with a commission. In these spaces you can speculate on the oscillations. Once you buy in bitcoin then then does the coin become impossible to trace?

Yes and no: if I buy an asset whose value fluctuates and sell it with a profit, then it will be up to me to declare (or not) the capital gain. But once turned into bitcoin, isn't it money that is no longer traceable?

No, the exchange accounts are verified with an identity card and often with proof of residence, you are super-registered. Then, in the network there are various mixing systems - as it is called - that allow you to lose track of who bought what.

We at bitcoin speak as if it were a simple coin, but in reality all this is made possible by the blockchain database, which gives a series of guarantees to the algorithm.

Rules for bitcoin

To be a currency, it must respect certain rules - it cannot be duplicated, it must be expendable only by those who have it. These are problems of an economic nature: bitcoin has developed despite not being a currency due to a question of trust between the parties. That said, the block chain is nothing more than a chain of transactions. The miner cannot mine a block that does not exist, which does not belong to the chain that started in 2008. To resolve a block, the miner must make sure that the block is part of the chains.

For https://de.bitcoinscycle.com, it was still slightly profitable. It was still little more than a game, I had made a small investment but I was able to return. There is talk of two or three years ago, and the mining market had not yet closed in favor of the big miners. Just in the hours before the Brexit referendum vote, there was a noticeable drop in bitcoin - by 23% - and then immediately afterwards there was a boom in return. In finance, it is a fairly usual thing. What exactly happened in those days?

Although bitcoin in times like these can be considered a safe haven asset, let's remember that its total capitalization is around 10 billion dollars.

They are nothing compared to the capitalization of assets, of government bonds circulating in global finance. It can be a forcing to say that it is mathematical that when there is a mistrust crisis, bitcoin automatically goes up. When it seemed that they remain winning bitcoin had gone down - even the stock exchanges had closed higher. As a result, bitcoin was doomed to go down because it reversed the trend - you could see how it could have returned to a stable downturn, but not. It was brought up precisely by the volumes pushed in those days there and that I personally experienced that night.

There is talk of halving daily bitcoin production. What's up? Because? Who decides it?

Bitcoin work as open source software:

Bitcoin is open source software that runs on nodes distributed on the network.

The process is followed by a remarkable developer community - also thanks to them bitcoin is the leading cryptocurrency.

In January, there was an important discussion about the size in megabytes of the block in which transactions are threaded every ten minutes, and this could even lead to a fork in the chain - there were Chinese people who wanted to use one standard over another, but in the end nothing was done.

This is to say that nobody has decided, if not the programmers who initially thought the software. The halving every 4 years balances the distribution of money, so that by 2020 80% of bitcoins will be mined. The rest will be mined in 100 years with a relatively low mining speed - there is talk of 6 bitcoins approximately every 20 minutes since 2021. Most of the coins are being created now, when the development of the currency and the demand become substantial. With the new coin existence profit also get increased.