Bitcoin and Cryptocurrencies simple Explained by Juan Rodulfo at Ubuntu Cafe
Bitcoin and Cryptocurrencies simple Explained by Juan Rodulfo at Ubuntu Cafe

Bitcoin and Cryptocurrencies simple Explained

6 minutes, 15 seconds Read

What is Bitcoin?

Bitcoin is a cryptocurrency invented in 2008 by a person or group using the name Satoshi Nakamoto. His employment began in 2009, when its implementation was released as Open-Source software.

According to CoinMarketCap there are currently 8,528 Cryptocurrencies. In a cryptocurrency system, the integrity, security and balance of accounts is maintained by a community known as miners. This community uses its computers or other specialized hardware to validate and date transactions, adding them to a collective database.

Many cryptocurrencies are designed to gradually decrease unit production, imposing a limit on the total number of units that may be in circulation. For example, Bitcoin at the production date of this program has a running amount of 18,633,931 coins and a maximum supply of 21,000,000 coins.

According to NBC News in a press release published on February 18, 2021, a couple of days ago, the Total Capitalization of the Bitcoin and Cryptocurrency Market reached an all-time record of $1 trillion.

Why is Bitcoin and Crypto so attractive?

SECURITY: The first and most important feature of Bitcoin and other currencies of its style is its encryption, Breaking the security existing in a cryptocurrency is mathematically possible, but the cost to achieve it would be extremely high. For example, an attacker trying to break Bitcoin’s proof-of-work system would need greater computational power than the entire fabric (red-swarm) of all miners in the system, and yet it would only have a 50% chance of success, in other words, breaking Bitcoin’s security would require a capacity greater than that of Google-sized tech companies.

DECENTRALIZATION: Cryptocurrencies are an alternative currency type or digital currency. The control of each currency works through a decentralized database called blockchain, which serves as a public financial transaction database.

Cryptocurrency systems ensure the security, integrity and balance of your statements through a structured network of agents, called segmented file transfer or multi-fuer file transfer, which are mutually verified as miners, which are mostly general public and actively protect the network by maintaining a high rate of algorithm processing, in order to have the opportunity to receive a small tip, which is randomly distributed. That is, there is no Bank or Government printing banknotes or bank notes.

EFFICIENCY: The use of Bitcoin and Cryptocurrencies for the execution of payments provides the following advantages:

  • Reduces the transaction cost because there is no intermediation.
  • Reduce times. Although online payments are fast, settlements between the parties take time and the seller receives the amount days after payment. With cryptocurrencies, the delay is in the order of minutes.
  • Eliminates the need to use financial agents to transact.
  • It allows citizens who are victims of currency exchange controls imposed by Dictatorial Governments to have access to Goods and Services of First Need, such as Venezuela.

Steve Kovach of CNBC, on February 8, 2021 publishes the following press release: Tesla will acquire $1.5 billion of Bitcoin and plans to correct it as a form of payment, so Michael Miebach CEO of Mastercard reveals in Bloomberg’s press release on February 17, 2021, that his company plans to accept cryptocurrencies.

How to buy Bitcoin and Cryptocurrencies?

When buying Bitcoin, it is important that you understand that in addition to being a currency it is a financial instrument whose price is subject to market speculation, which can make your investment fluctuate positively or negatively.

It is also extremely important that you save your keys and forms of access jealously, because even though it is mathematically almost impossible to duplicate or clone your coins, they can be stolen by subtracting your keys and impersonating your identity.

There are two types of wallet for your digital currencies or cryptocurrencies: the hot one which means it is connected to the Internet and the cold one that remains disconnected to the network and are like a kind of Pendrives.

Now, I share with you the main channels of acquisition, for employment as a form of payment, savings or investment in Bitcoin and Cryptocurrencies:

LOCALBITCOINS: It is a company founded in 2012, based in Helsinki, Finland. Its service facilitates over-the-counter trading of local currency for bitcoins. Users run ads on the website, where they set exchange rates and payment methods for buying or selling bitcoins. Other users respond to these ads and agree to meet the person to buy bitcoins with cash or pay with online banking. LocalBitcoins has a reputation and feedback mechanism for users and a conflict resolution service.  In November 2019, was registered as a virtual currency provider by the Financial Supervisory Authority of Finland. Payments Accepted:Bank Transfer, Cash Deposit, Gift Cards, PayPal, MoneyGram, Serve2Serve, Vanilla, Western Union. (CLICK HERE TO GO: LocalBitcoins)

BINANCE: Is a cryptocurrency exchange that provides a platform to trade various cryptocurrencies. In January 2018, Binance was the world’s largest cryptocurrency exchange in terms of trading volume. Binance was founded by Changpeng Zhao, a developer who had previously created high-frequency trading software. Payments Accepted:Bank account deposit, credit card (some). (CLICK HERE TO GO: Binance)

ROBINHOOD: The Robinhood stock brokerage application defines itself as “a stockbroker built with the needs of a new generation in mind”. Robinhood allows traders to buy and sell stocks and cryptocurrencies for $0 per transaction.  Payments Accepted: Bank account deposit. (CLICK HERE TO GO: Robin Hood)

HitBTC: This is a leading bitcoin exchange in Europe that provides cryptocurrency trading services to individual institutions, traders and traders around the world. The trading platform was founded in late 2013 and is under the operation of Ullus Corporation. Payments Accepted: Bank account deposit. (CLICK HERE TO GO: HitBTC)

COINBASE: It is a digital currency exchange based in San Francisco, California. They exchange Bitcoin (₿), Bitcoin Cash, Ethereum (Ξ), Litecoin () and other digital assets with local currencies in around 32 countries, and bitcoin transactions and storage in 190 countries, Payments Accepted: Bank account deposit, credit card (some). (CLICK HERE TO GO: Coinbase) It is a cryptocurrency exchange platform. It accepts multiple types of deposits and supports different digital assets. It is ideal for both advanced users and beginners who start buying and selling cryptocurrencies. Accepted Payment Methods: Bank account deposit, credit card (some). (CLICK HERE TO GO: CEXio)

PAXFUL:  It is a bitcoin equal market that connects buyers with sellers. Simply select your preferred payment method and type how many bitcoins you need, Accepted Payment Methods: Bank Transfer, Cash, Cash Deposit, Gift Cards, PayPal, MoneyGram, Serve2Serve, Vanilla, Western Union (CLICK HERE TO GO: PAXFUL)

Finally, if you plan to engage in cryptocurrency trading or any other instrument, the first thing you’re going to need is a TRADINGVIEW account: TradingView is cloud-based graphics and social media creation software for beginner and advanced active investment traders. Basic charting, research and analysis information is available with a free account. (CLICK HERE TO GO: TradingView)

This edition was sponsored by Gorila Travel, Virtual Travel Agency, Air Tickets, Hotels, Vehicle Rental and Event Tickets, with prices much lower than those offered in the market, when planning your next trip, visit and start saving at least $40 per Ticket.

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