Bitcoin until this moment can be called the currency of the Internet, or we can also call bitcoin is "electronic money" for fast and convenient, even I can say even more succinctly: "Bitcoin is money."
Does Bitcoin work like?
Bitcoin works based on the advanced encryption algorithm (SHA-256 hash). Protocol (the Foundation, structure, architecture) of the bitcoin has open source (open source), this means that all who know about programming can check through this source, but cannot change it. Bitcoin protocol can only be changed or upgraded through. Before any upgrade, change of developers (developers (programmers)) must give prior notice on the forum and if the support of the majority of the changes that will be promoted.
On the one hand, bitcoin is a unit of currency; on the other hand, Bitcoin is a distributed network, Central, peer (peer to peer) the transfer of currency. Which means you can send it directly to another bitcoin without through an intermediary, regardless of time, despite space, with an extremely low fee, almost equal to zero, or even by 0. Let's think about this a bit. This is indeed an unprecedented revolution happened in human history. Satoshi is an award that so far people still is to be-that is the problem of trust by giving the initiative about the blockchain (I will talk about this in detail later).
Because when there was an intermediate between standing, you have to believe them. How can know for sure is that they will not trick you? Never know, and not your confidence also put in place. How to a Vietnamese can send money back to relatives in Vietnam on a weekend when the send money service is not open with near-zero fees despite the amount you want to send is a few hundred dollars to tens of thousands of dollars or Furthermore? Even 150 MILLION (the cost: zero!) [Reference] I think perhaps this is a property of the greatest migration ever occurred on Earth. The old days people move the gold treasure, then off to say everyone knows is needed a lot of costs for a transport as such: car hire, boats, horses, guards, guards ... not to mention the waste of time that transports while with Bitcoin then It only takes about 60 seconds (average a confirmation (confirmation of a transaction) of the bitcoin takes about 10 minutes, the greater the need to have multiple confirmations to more definitely, once had about 6 confirmations over, can say for sure 100% of money has posted it's safe (NOT hack) and cannot be reversed.)
Blocks and Block Chain
Block Chain is a chain linking the Blocks like a bead is a chain linking the nuts again. Each block has a duty to keep these transactions (which has not yet been saved in the blocks before). Imagine as Block Chain is a ledger book, giant public Ledger records all transactions, in which each page in the log book that is a Block, this page is full, it will burn to a new page; This book has a characteristic is that there is an infinite number of pages. Once the information about the transaction has been recorded, it can never be changed or deleted. In addition to these transactions, each block contains information linked to the block before it. And it also contains an answer to a very difficult problem to solve. This answer is different for each block. If the response is not correct then the block which has no effect and cannot be saved in the blockchain.
Bitcoin is created?
Assuming as we for example 1 bitcoin with an ounce of gold (nearly one (8.3), an ounce is a unit of measurement of the Golden West), just about every 10 minutes, there will be a number of bitcoin (yellow) "dig" up. This number is now 25, as has decreased by half every four years compared to the original figure is 50. And until the year 2140, will have a total of 21 million all bitcoins. In other words, after the 21 million end up in dug bitcoins 2140, will no longer bitcoins to dig further.
1 bitcoin can be divided out to be 100 000 000 times. The smallest unit could not further subdivide are called Satoshi, in the name of the person who has created the Bitcoin. So 1 bitcoin = 100 000 000 (one hundred million) Satoshis. Or 1 Satoshi = 0000 000 01 Bitcoin.
A mistake in many psychologies is present they see reviews 1 too should think bitcoin can not afford to buy. Actually, if you can't buy 1 bitcoin then you can still buy 0.5, 0.1, 0.01 bitcoin. But perhaps many will not overcome the psychological barrier that is unable to tolerate the feeling of owning a small part of something, although it is for the numbers money cold then it's no difference: If 1 bitcoin by 1000 it then 0.1 bitcoin by 100 dollars, nothing more nothing less.
Or if you find it too, you can see through the Litecoin, your companion with Bitcoin, the price is still very low compared to the potential. If gold is Litecoin Bitcoin is silver, can generally be.
Why Bitcoin has value? The real value of Bitcoin?
Many people believe that the value of Bitcoin is calculated by the amount of money you can change out from it, or in other words, is the price a bitcoin rules out fiat currencies (USD, Yen, Pounds, Euros, us ...) Actually, that's not the real value of Bitcoin, it is only a price, a corollary from the rule of supply and demand. Then the TRUE value of Bitcoin is? Please reply, its true value is in the network, the network, which you would like to participate, you must have the coins bitcoins. Imagine what this coin like the stock of company start-ups (only thing is here don't have any company), when more and more people want to buy stocks that then, of course, stock prices are rising. Its value lies in its usefulness, comfort, safety, security of the payment, the sale. Not a bank, company, State intervention, a genius idea has become true for the first time in human history.