What is Bitcoin from A to Z in simple words. Theory and practice

Many people are interested in exactly how much money they will receive if, for example, they want to convert bitcoins to rubles. In this case, you won’t have to calculate anything yourself, because there are special services and programs. A Bitcoin calculator will help you make complex mathematical calculations before making a transaction on a stock exchange or exchanger. This way you will know exactly how many coins you need to sell to get a specific amount in fiat.

Traders and miners need to monitor changes in the price of digital assets in the market. There is a convenient tool for this – a cryptocurrency converter (calculator). This is an online service for calculating the amount of one cryptocurrency relative to another digital asset or fiat when buying or selling. If you need to know how many BTC you can buy for $1000 or 1000 LTC, then a Bitcoin calculator will help you with this.

The service tracks instant online rates of all existing cryptocurrencies and all national currencies of the world. Indicators are generated based on the results of completed trading on exchanges around the world. The service uses the average rate of digital assets from several well-known sites. National currency rates are set daily by the European National Bank. Bitcoin calculator online uses this information from official sources.

Bitcoin is the first and main cryptocurrency

There are thousands of cryptocurrencies. The first cryptocurrency that appeared in the world was Bitcoin, in English Bitcoin, short for BTC. In this article, for simplicity, we will talk mainly about Bitcoin.

All other cryptocurrencies are clones of Bitcoin. They were completely or partially copied, and new ideas were added somewhere. This became possible because the Bitcoin program code is open to everyone - this is not a secret. Anyone in the world can see how it works and works.

Finding Lost Bitcoins

The Bitcoin code is located on GitHub in the bitcoin repository.

Don't you understand anything about programming? Don’t worry, the authors of this article don’t understand either, but this doesn’t stop you and me from using cryptocurrencies.

By the way, here we will make the first reservation. You and I have to take on faith what the programmers who invented Bitcoin did. Should we be afraid of this? Not worth it. You don’t know thoroughly how your car works from one screw to the next, or how the computer works in it, right? It’s the same here. Programmers all over the world are eager to find at least some kind of flaw in the operation of the Bitcoin network, so, believe me, if there was an error, it would have been found long ago. We simply trust the professionals who assembled our machine and tested it, the same with Bitcoin: millions of programmers in the world read and study Bitcoin code every day.

BTC to RUB. What is the current rate?

Below is a chart of the dynamics of BTC to RUB for the month from May 02, 2022 to May 09, 2022:

Short-term changes in the price of BTC to fiat currencies occur constantly. To predict the possible rise or fall of a currency, it is not enough to know the current exchange rate. We recommend viewing data on quotes for previous periods. They are contained in charts for the week, month, quarter and year.

What is cryptocurrency, who controls it? Can you touch Bitcoin?

Bitcoin - electronic money

Judging by the name “cryptocurrency”, you understand perfectly well that we are talking about money. Only this money is “crypto”, that is, it is encrypted in some way. What and how is encrypted is of no interest to you and me at the moment. Let's assume that cryptocurrency is electronic money.

What does electronic mean? Look, regular currency can be printed (banknotes) or electronic (bank account). When you transfer money from your account to a friend's account, pay utility bills through online banking, when you pay with a bank card in a store - in all these cases you do not see the money. They are somewhere virtually on some computer servers. You don't see them and you can't touch them with your hands.

Bitcoin has been around for over twelve years

You can go and withdraw 5 thousand rubles from an ATM from your bank card and put it under your pillow. In this case, your electronic virtual money will become real. You can touch them, admire them, hang them on the wall. In the case of Bitcoin, this cannot be done. You cannot go to a cashier, cash out Bitcoin and put some BTC coin under your pillow. Of course, you can exchange Bitcoin for rubles and put rubles under your pillow, but these will already be rubles.

Is this scary? In our opinion, it’s not scary at all. Even grandmothers (the majority) have been receiving pensions in bank accounts for a long time, have been using savings books for decades and do not use real money.

How many Bitcoins and rubles are there?

According to the Central Bank of Russia, more than 25 trillion rubles in cash were printed. In addition, virtual electronic rubles are stored in bank accounts. How many are there? No one knows. The story is similar with the dollar, euro, pound sterling or any other common currency. We do not know and cannot control how much of it exists, and how much will exist tomorrow or in a year. The process of emission (release) of the ruble is not controlled and cannot be predicted by us. And at any moment the government of any country can print more pieces of paper.

With Bitcoin everything is much simpler. There are now just under 19 million Bitcoins (BTC) in the world. Approximately 900 new BTC appear every day, but over time the number of Bitcoins appearing daily drops. There will be a total of 21 million Bitcoins in the world, 20,999,999.9769 BTC to be more precise. All. No more, no less.

Large companies are buying Bitcoin

If the Bank of Russia decides to print 100 million rubles, it takes and prints them. He won't question you or us. This will not work with Bitcoin. There will only be 21 million coins. You won’t be able to “print” a couple more BTC later - it’s impossible.

Who controls the currencies?

Conventional currencies are managed by countries' central banks. The ruble is controlled by the Central Bank of Russia, the dollar by the US Federal Reserve System, and the euro by the European Central Bank.

Russia and digital currencies

No one controls Bitcoin. Bitcoin is an anarchic system. It has no boss; everything that happens in the system of this currency is described by program code. In the next chapter we will look in detail at how this is possible.

Dynamics of the cost of 1 Russian ruble in bitcoin for a week (7 days)

Dynamics of the cost of 1 Russian ruble in bitcoins per month

Using Bitcoin and other cryptocurrencies

Unlike regular money, cryptocurrencies are impersonal but completely transparent. Such is the paradox. This means that you can look at any Bitcoin transfers throughout the history of its existence. There will be no names in the “Sender” or “Recipient” column, but there will be wallet addresses - these crazy ones that we have already seen, for example, 1CKXsyrhF9zfzizZb1x9zwkHczjxNRc6by.

On the one hand, this provides complete anonymity. On the other hand, if you combine a living person and his Bitcoin address, you can see absolutely all of his transfers. To what addresses and how much did he transfer? It must be said that any person can have an infinite number of Bitcoin addresses, but it is not always possible to remain completely anonymous.

An important point that distinguishes Bitcoin from the Ruble, Dollar or Euro is that Bitcoin is not regulated or protected by anyone. A simple example.

If you transferred 1000 rubles not to your grandmother, but to another person’s account. What are you going to do? Contact the bank, write an application, they will most likely help you and return your funds.

Bank and Bitcoin

If you transferred 0.1 BTC not to your grandmother, but to someone else’s address, in a high degree of probability you will never get it back. There is no mechanism to return the money. There is no way you can contact the recipient so that he “gives in a good way.” There are no Bitcoin police. You have no leverage at all.

In this regard, cryptocurrencies are more like cash. If cash is stolen, it will be impossible to find it. Storing cryptocurrencies can be just as dangerous as holding cash. Except that cash is the size of pieces of paper, you can’t hide a lot of them, but bitcoins in any quantity can fit on a flash drive, and what can we say, in one small file on the computer.

An important difference between cryptocurrency transfers and transfers of conventional currencies. If you transferred Bitcoin and this transfer is already sealed in the blockchain, then the money has left you and reached the recipient. There is no other option. Anyone in the world can verify this. If you transferred rubles from account to account, they could leave one place, arrive at another in a day, two, or they could even get lost along the way due to the poor performance of banks.

Where and how can you use cryptocurrencies?

Typically, cryptocurrencies are used for the following purposes.

ASIC miner

Mining should never be confused with investing. Of course, the same person can be both a miner and an investor, but there is still a difference. Mining is income here and now. Investing is “for the future.”

Why is it profitable to transfer bitcoins to rubles through converters?

The advantages of such services:

• Conversion is free.
• The calculator allows you to find out how much any crypto coin costs in different currencies, including world ones.
• Allows you to work with different units of measurement. You can work with Satoshi (Satoshi is equal to 0.00000001 BTC) and intermediate units of measurement - cento-bitcoin, milli-bitcoin, micro-bitcoin.

Let's summarize the main advantages of converters:

• Very convenient interface.
• Everything is intuitive.
• Conversion is carried out instantly.
• Course information is updated online in real time.

Bitcoin storage

Regardless of how exactly you want to use Bitcoin, you need to create a wallet. Choosing a wallet is an important aspect. The security of your cryptocurrency is in your hands. We remind you once again that if your cryptocurrency is stolen or you lose it yourself, no one will restore it! Whatever wallet you choose, there is a risk of losing your Bitcoin. Depending on the wallet and storage method, the risk is higher or lower.

Details:

If you do not intend to store large amounts and are just starting your cryptocurrency journey, we recommend one of the multi-currency crypto wallets. They are available on computer and mobile phone. For example Coinomi or Trust. Be sure to save passwords and special recovery phrases in safe places, as wallet creators recommend.

So-called hardware wallets will be one step safer. Special flash drives that you insert into your computer are somewhat similar to 1C keys in an accountant’s computer. The main danger in the case of such wallets is buying secondhand or from unverified sources. The hardware wallet must be new and purchased directly from the manufacturer.

The same Bitcoin

If you decide to store large amounts, you need to consider more reliable storage. For example, you will need to buy a separate computer to store cryptocurrency and several flash drives.

Remember that scammers and hackers are around every step of the way. When using cryptocurrencies, you must build your own defense against them. There will be no help.

Why do you need a bitcoin to ruble calculator online?

How fashionable is it to use such services and is it possible to do without them? The online bitcoin to ruble calculator has one goal - to show the ratio of different types of digital money relative to each other and relative to fiat currency. This question is important for miners. To find out how much real money they will receive, they need to convert the mined BTC into rubles or dollars. For traders and investors, the BTC calculator is an advisor that helps them choose a strategy for working with cryptocurrency and the ability to calculate the return on investment.

Cryptocurrency to ruble calculator is a program that helps you quickly convert the value of BTC into the price of any other cryptocurrency or fiat currency. Automatic conversion is carried out online at the current exchange rate. The BTC calculator helps in making quick decisions regarding a particular operation. The service helps to get a quick idea of ​​the price of the user’s assets, both in bitcoins and in any other asset.

Payment, purchase, sale, exchange of Bitcoin and other cryptocurrencies

For the operations of buying and selling Bitcoin, as well as exchanging it for other cryptocurrencies, there are special cryptocurrency exchanges and exchange services. Most of them require registration and provision of personal information - for example, a passport. You can also find exchanges that still operate anonymously.

In any case, exchanging one cryptocurrency for another is usually much easier than exchanging cryptocurrencies for rubles. All you need to do is go to one of the exchanges where various exchange options are available to you. The most famous exchanges in the world: Coinbase, Gemini, Kraken, Binance. Not everyone works with clients from the CIS countries.

Buying cryptocurrency

You can also use the Telegram bot to buy or sell Bitcoin. This is a working option, especially for buying and selling small amounts.

Is cryptocurrency legal in Russia?

The Law on Digital Financial Assets and Digital Currency was adopted on January 1, 2022. According to this law, cryptocurrency can be an investment object, but cannot be used to pay for goods and services.

As you can see, from the point of view of the law, you cannot pay for anything with Bitcoin in Russia. In other countries, legislation is different. In some places, cryptocurrency is allowed, in others it is prohibited, in others its status is still not regulated in any way.

How does a bitcoin calculator determine the exchange rate?

The online Bitcoin calculator updates rates in real time: every minute the service synchronizes with major cryptocurrency exchanges. This happens through a single, systematized API - this ensures that the data is up-to-date. Digital assets are highly volatile. It is better to double-check the indicator immediately before the transaction. The transfer may turn out to be unprofitable and then it is better to postpone the conversion a little.

The BTC converter eliminates the need to manually do calculations and monitor quotes. Data updating occurs very quickly. The service allows you to immediately calculate the amount required to convert one cryptocurrency to another.

Mining

Mining is not as complicated as you might think at first glance. The scary word “cryptocurrency farm”, which is used to scare people on television news (usually when someone doesn’t pay their electricity bill), is not so scary.

Mining equipment

There are two types of mining equipment:

1. Special devices for mining, the so-called ASIC (Special Purpose Integrated Circuit). It is a small metal box, inside of which there are microcircuits, and on the sides there are fans for cooling.
2. Computer video cards. The same video cards that are used for computer games. To increase performance, special computers are usually assembled, with an open case for better cooling, and not one, but several video cards are installed in one computer.

Bitcoin mining is carried out only using ASIC devices, while Ethereum is mined on video cards.

Video cards vs ASIC

There is also luck in mining. Read more about this important indicator in a separate article.

Both ASICs and video cards consume a lot of electricity, and they get very hot during operation. Remember this.

Is it difficult to start mining?

In the modern world, the difficulty of mining is very high, and the process occurs only through the so-called mining pools. Mining pools are servers that unite miners. Miners work together and receive rewards. The mining pool distributes this reward in a fair manner and pays out the earned cryptocurrency to each miner.

If you have a desktop gaming computer with a video card installed, you can start mining today - it's not difficult. Go to 2CryptoCalc and see which cryptocurrency is profitable to mine on your video card. Next, follow the instructions of the mining pool. You will need to download a special miner program and install the wallet of the cryptocurrency that you are going to mine.

Antminer Bitmain S19 Pro

If you want to mine Bitcoin, a regular video card will not help you. The only option is to purchase a special ASIC device. One of the most advanced Antminer Bitmain S19 Pro at the moment. Consumes 3.5 kW from the network and makes noise like an airplane. You can't put one like this at home.

However, setting it up is not at all complicated, all you need is to enter the address of the mining pool and the address of your Bitcoin wallet in the ASIC settings, connect the device to the Internet and plug it into a power outlet.

Putting knowledge into practice

Have you decided that theory is enough and it’s time to start practicing? In this short section we will give two of the most common examples of “involvement” in the world of cryptocurrencies.

Have you decided to become a cryptocurrency investor?

1. You have saved 10 thousand rubles from your salary and want to buy Bitcoin with it.
2. Install your wallet. Coinomi will do right on your mobile phone.
3. Install the application - iOS/Android.

Coinomi wallet

4. We select the necessary cryptocurrencies, for example Bitcoin.

Coins in Coinomi

5. Be sure to make a backup copy of your wallet. In Coinomi, to do this, you need to click on the inscription at the top “Wallet not backed up TAP TO START”, and then securely save the backup phrase. Remember that any unauthorized person using a backup phrase will have access to all your funds.


Recovery phrase for Bitcoin in Coinomi

6. Go to the Receive tab. Your wallet address is shown here.

Receiving coins in Coinomi

7. We buy Bitcoin for 10 thousand rubles through a Telegram bot and send it to our wallet address, which is shown on the Receive tab.

Hooray. You are now a crypto investor. All that remains is to wait until 1 Bitcoin costs one million dollars.

Quotes for the rate of 1 btc to the ruble for today online on exchanges

Bitcoin is usually measured in US dollars, and most cryptocurrency exchanges link the exchange rate to this base unit. But information about the Bitcoin to ruble exchange rate today can also be viewed in rubles. On different exchanges, exchange rate quotes may differ by minimum values. Below is a table with rate quotes on several cryptocurrency exchanges.