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The principles of the blockchain

10/30/2018
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  • blockchain
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There are many answers to the question of what bitcoin is used for and why it became known so quickly. But none of them will be absolutely accurate. The sharp demand for cryptocurrencies began due to the fact that they solve many problems of mankind.

What is bitcoin

When answering the question of what cryptocurrency is used for, the main thing should be remembered. In fact, it is not a tangible asset. First of all, it is a technology that makes communication much easier. Now people need a middleman to buy any product or conduct a bargain. First of all, this is a state that has issued cash and non-cash money. The second in this chain is a bank or a payment system. They guarantee the holding of funds from one account to another. Of course, if the purchase in the store is done in cash, the costs are reduced. But in the era of globalization, counterparties are often located in other cities or even countries.

The blockchain is inherently capable of completely removing all intermediaries from the chain. The stored information in it can not be changed. Since it is on thousands of devices at the same time, no one can change the numbers without the consent of a significant part of the community. At the same time, customers are given additional benefits:

  • anonymity;
  • the speed of operations;
  • ability to work from any location.

Initially, the blockchain was perceived as a means of payment, which is not controlled by the official authorities. Indeed, it has such a function. But it turned out to be secondary.

Ways to make money on cryptocurrencies

When a significant part of investors found out what bitcoin mining is used for, they understood the originality of the developers' ideas. Each transaction requires confirmation, and this requires considerable computational power.

To ensure the smooth operation and increase the number of new coins, a mining procedure was invented. Therefore, it has two main functions. But it turned out that thanks to the opportunity to get money through a video card, a huge number of potential coin users became active participants in the process. Now around the mining are built entire communities of individuals and organizations. They are pooled and in this way increase production efficiency.

Almost everyone knows what bitcoin mining is for dummies. But there are still several ways to make money on digital assets. The most popular of them is classic stock trading. Bitcoin and altcoins have become a trading asset that is used on most trading platforms. This process is only gaining momentum, but in the near future, an influx of institutional investors is expected.

The future of bitcoin, cryptocurrency and blockchain

Now we can confidently say that blockchain as a technology has a bright future. It has already received recognition in the financial community, government and commercial organizations use it for processing and storing information.

As for Bitcoin, the situation is somewhat different. At its core, it was conceived as a payment network. But now it has become a financial asset. This suggests that it has some risks. It can be said for sure that cryptocurrencies have become firmly established in modern society. There is a growing likelihood that states will begin to replace fiat money with digital.

However, to say for sure that the price of Bitcoin will rise until no one can. It has a sufficient number of influential opponents and supporters, the struggle between which is conducted at various levels of society.

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