Bitcoin is a virtual and intangible currency. That is, it cannot be touched in any of its forms, as is the case with coins or bills, but it can be used as a means of payment in the same way as these.
As with the money we have in our bank, Bitcoin increases or decreases in our personal account as we make income or expenses, the only difference is that there is no possibility of monetizing them, as happens when, for example, we withdraw money from a ATM.
Bitcoin was born in 2009 and is out of the control of any government or institution, its value is variable and based on the law of supply and demand
It is beyond the control of any government or institution, its value is variable and is based on the law of supply and demand.
It is on everyone’s lips, Bitcoin, the Internet currency, monopolizes praise, criticism and misgivings equally taking into account the numerous advantages over traditional payment systems
We know that reading this virtual currency asks you these different questions:
How does it work?
- Is it legal?
- How much is a Bitcoin worth?
How does it work?
To operate with Bitcoin you just have to download some of the available applications, there are multiple alternatives for any operating system, whether desktop or mobile such as iOS or Android (MultiBit or Bitcoin Wallet, are just a few options).
With them you can create your Bitcoins wallet that, simplifying, consists of a private key associated with a public key with which to perform the operations. Thanks to them, Bitcoin cannot be falsified and guarantees that user-to-user transactions are carried out safely.
Is Bitcoin legal?
The legality of Bitcoin is simple to summarize «Bitcoin is legal in that place that accept it as a means of payment in a transaction», that easy and simple. Being out of control of any institution there is a legal vacuum about it.
In addition, as they are anonymous and encrypted transactions between two users, they are free of any commission or tax, such as VAT.
How much is a Bitcoin worth?
As we have indicated, the value of Bitcoin is based on supply and demand, and is calculated using an algorithm that measures the amount of movements and transactions with Bitcoin in real time.
Currently the price of Bitcoin is located, euro up or down, around 475 euros (as of February 13, 2014), although this value is not much less stable since Bitcoin is listed as the most unstable currency in the currency market .
For example, by analyzing the period between August 2012 and August 2013, it reached a maximum value of 134 euros in April 2013 despite the fact that at the beginning of February its value was around only 16 euros.
In fact, its value has increased 600% in the first three months of 2013. Details by which many experts think that we are facing a tremendous bubble full of speculators that, sooner or later, will eventually explode.
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