What is so special about the Bitcoin system?
2017-04-20 00:00:00:
Bitcoin is the name of a widely used electronic payment system. It is based on peer-to-peer technology. The currency used by the technology is called the system itself.
Features of Bitcoin
Features of Bitcoin that distinguish it from ordinary systems that have centralization are in several factors, one of which is the absence of a center as such. This is what makes people who care about their privacy in all matters, imbued with confidence in such networks.
Bitcoin is not a debt of the issuer, and this is called its most important feature. Simply put, Bitcoins have no analogues in the material world - these are only numbers that are bound to some address. This means that they have no peg to any other currency or valuable asset.
The peculiarity of Bitcoin can also be attributed to the nuance that the result of decentralization was the complete absence of a regulatory body. For this reason, information on the progress of the issue becomes known in advance to absolutely every participant. All system participants take part in the generation, if they are willing to provide the computing power of their personal devices to fulfill the set goals.
Interestingly, when introducing the initial client versions, there was a special-purpose button that was pressed to generate new Bitcoins. However, then a new software came out and it was abandoned, which, by the way, can also be considered a feature of the Bitcoin system. And this was done for the reason that with the help of new software, new currency units were formed by generating them in the process of mathematical calculations. For which the latest models of ultra-modern video cards were used.
What is remarkable about Bitcoin
Bitcoin has several features:
Nobody knows the real name of the creator. The true programmer who created this exclusive digital currency did not want world fame and decided to remain anonymous. True, the name of Mr. Nakamoto was announced, but rumors immediately spread that in fact this pseudonym was taken by a group that united several developers. And isnt this one of the answers to the question of what is remarkable about Bitcoin.
Bitcoin has an original way of playing cryptocoins. Indeed, in order to obtain them, it is necessary to constantly solve cryptographic and mathematical problems. What are high-power computer machines used for? And although some are trying to belittle the value of Bitcoins, calling them a monetary surrogate, they are quite capable of performing all the functions of standard money. In addition, they have new properties that are unique to them.
Deflation and Bitcoin are inseparable concepts. Many people, when answering the question of what is remarkable about Bitcoin, are talking about deflation. Considering this feature of Bitcoin, other rather interesting details come to light. First, Bitcoin is not subject to inflation. To confirm this, it is enough to recall the impossibility of additional emission. As stated at the very beginning, no more than 21,000,000 Bitcoins will be played and not a single coin more. Secondly, the statement made earlier implies the continuous appreciation of Bitcoin. After all, the presence of a limit raises the price, since the demand level will always be higher than the supply level. Here is another answer to the question of what makes Bitcoin so special.
In conclusion, I would like to say once again that Bitcoin has a prospect that other alternative currencies and fiat currencies have never dreamed of. This cryptocurrency has demonstrated high potential. Taking into account its predominant features and differences, we can say that in the near future, Bitcoins may well become another world currency and may oust the hegemony of fiat currency from the financial Olympus.