What does Bitcoin look like on a computer: what is it for, price

A newcomer to the topic of cryptocurrency faces many questions: what is Bitcoin, how to use it and store it, what does Bitcoin look like and what is needed to buy it. In this article we will talk in detail about the most popular cryptocurrency in simple language.

Images of popular cryptocurrencies in the form of coins

Strictly speaking, any cryptocurrency does not have a real physical medium. This is its main difference from the currencies we are used to, such as the ruble, dollar or euro (they are also called fiat). Therefore, Bitcoin is not a coin or a banknote. To understand what it is, let’s briefly talk about the essence and functions of cryptocurrency.

Features of Bitcoin

When carrying out any transactions with money, making purchases or transfers, we use the services of intermediaries, most often banks, and pay a commission for this. Nowadays, people increasingly prefer non-cash payments. Your bank account details and such transactions are stored in the digital storage of the bank providing your services.

However, transactions can also be carried out on the Internet, storing information about them in a decentralized manner, without the participation of banks. This is exactly how the payment system is structured, the unit of accounting for transactions in which is Bitcoin - the first digital currency. Essentially, this is encrypted transaction information that is stored on the computers of participants in the Bitcoin network around the world. The sequence of records of these transactions is called a blockchain. Changing one of the links in this chain leads to changes in others, so processing a larger number of transactions requires serious computing power. This processing using encryption is called mining.

Below we briefly describe the main characteristics of Bitcoin.

• Decentralization. Bitcoin operates on blockchain technology, the peculiarity of which is the absence of a single center. While a bank’s digital vault can be hacked to steal clients’ money, this is impossible with Bitcoin. Information about transactions is stored on a large number of devices of network participants. All transactions are carried out on the Internet, and the data is protected by cryptographic methods.
• Anonymity. To conduct transactions with Bitcoin, the user does not need to transfer his personal data to a bank or other organization. To do this, you just need to create a Bitcoin wallet with a specific address. This address is sufficient for most transactions. You can read more about Bitcoin wallets in this article.
• Limited emissions. Traditional money is issued by central banks, which at any time can increase the issue and depreciate the coins and banknotes in circulation. This does not happen with cryptocurrency, since it is obtained through mining. The principle is similar to gold mining: the less it is, the more expensive it is. Moreover, in the Bitcoin source code there is a limit on the maximum number of coins that can be issued - 21,000,000.
• Irreversibility of operations. Once you have made a transaction, it is impossible to cancel this action. After each operation, the entire network changes, that is, data about the operation will be scattered across thousands of computers around the world. Data cannot be falsified for exactly the same reason.
• Globality. Bitcoin allows you to make fast payments with minimal fees anywhere in the world. Its rate is based solely on fluctuations in supply and demand, since it is not subject to the influence of states or regulatory authorities. For the same reason, anyone can own and use Bitcoin, since no one can block or freeze their account.

Collapse of the exchange rate or reasons for the fall

There are many reasons why Bitcoin is falling in price. Consider the following:

1. Impact of news
2. State influence
3. Technological problems
4. Buying altcoins with bitcoins

Let's look at all these points in more detail.

Impact of news

News affects the mood of the masses - this is one of the significant problems in the world of cryptocurrency, because any negative news entails a fall in the rate, while positive news increases it.

For example, in 2017-2018 there were repeatedly rumors that China wants to completely abandon cryptocurrency. This immediately affected the price of Bitcoin: the rate fell. Such news has a negative impact on the growth of Bitcoin; often this news is falsified and, most likely, was launched specifically to artificially collapse the cryptocurrency.

State influence

Many countries have long decided on the legal status of Bitcoin (for example, America) and have completely legalized it. Many countries still cannot decide what to do with it (for example, Russia). And there are countries that have completely banned Bitcoin - such actions greatly affect the rate of the first cryptocurrency: it falls, since such countries are completely closed and cannot take part in the life (buying, selling) of Bitcoin.

The following countries have currently banned Bitcoin:

1. Bolivia . The Central Bank announced a ban on Bitcoin: the Bolivian government decided that the cryptocurrency would cause enormous harm to their economy, so transactions with it are prohibited.
2. Kyrgyzstan . The National Bank has come to the conclusion that mining Bitcoins is illegal - cryptocurrency mining is prohibited.
3. Bangladesh . A law was issued according to which the Bangladeshi authorities declared cryptocurrency illegal and any transactions with it are punishable by imprisonment for a term of 12 years.
4. Ecuador . The authorities considered Bitcoin a threat to their economy and banned it. But they didn’t stop there, deciding to create their own digital money, which only they would control.

All this to some extent influenced the fall of Bitcoin.

Technological problems

This problem should be considered separately from all others, since it has an internal nature of impact on the price of Bitcoin, and not external (such as news, government, etc.). This is due to the technical component of Bitcoin.

Bitcoin's scalability problem (the way the system handles growing network load) can lead to a loss of trust in this cryptocurrency. This will entail the departure of part of the market to other cryptocurrencies, which will lead to a fall in the Bitcoin rate.

Buying altcoins with bitcoins

These concepts are interconnected: on almost all exchanges, altcoins (in simple words - the rest of the cryptocurrency, for example, Zen, Nem, Ethereum Classic and others) are purchased only for Bitcoin (some exchanges have also added Ethereum and Litecoin for the purchase of altcoins).

If interest in altcoins decreases, that is, trading occurs less frequently, then the demand for bitcoin also decreases.

Conclusion : It is necessary to understand that all the reasons we have listed for the fall in the Bitcoin exchange rate are closely related to each other. When predicting changes in the Bitcoin rate, it is worth paying attention to each: they all lead to a fall in the Bitcoin rate, but at the same time they can also lead to its growth.

Next, let's look at what could lead to Bitcoin growth.

What does Bitcoin look like?

Since Bitcoin exists only on the Internet, it cannot be touched or seen. Each coin is represented as a hash function. The totality of data about each coin is stored in an electronic file in a Bitcoin wallet. This file can be downloaded to your computer or it will be stored on the server of the service where you created the virtual wallet. Access to the wallet is provided using the address - a sequence of letters and numbers. At this address you can send bitcoins from your account or receive them from other users.

What does Bitcoin look like? The photo of the coin from the CNN website, like other similar images, rather misleads ordinary people as to what a real Bitcoin looks like.

Numerous images on the Internet raise the question about Bitcoin: what does the coin look like? As we have already said, Bitcoin is not a coin or a banknote, that is, any physical embodiment of it is rather symbolic in nature. However, there are companies and individuals that issue coins from various metals that have two QR codes: an open one with an address (for transfers and transactions) and a closed one with a private key (known only to the owner and giving access to the balance and transaction history). Such coins are of interest to collectors and are essentially a way to store a crypto wallet address. You can just as well write it down on paper, it just won’t look as presentable.

Mobile and local wallets

Mobile wallets also provide the user with personal keys. It is only necessary to distinguish them from mobile versions of online sites that do not share such information with wallet owners.

Another subtlety when using mobile applications is that they work according to a simplified scheme for confirming transactions, so they make transfers with the involvement of a third party, and this may not always be available.

Local wallets that are installed on a personal computer also have the function of exporting personal keys. Such storages as Bitcoin Core and Armory work directly with the blockchain chain. Most others also cannot do without a third party to confirm the transfer.

Other disadvantages of such wallets include the vulnerability of the PC - there is always the danger of being hacked by malware. Another feature of such programs is that they take up a lot of space on your hard drive and require a large amount of RAM to operate.

Attention! What is a Bitcoin farm - just about the complex stuff. Find out how to create one at home or in any spare space.

What does the Bitcoin code look like?

Anyone can join the Bitcoin network and start mining. The reason for this is open source. It was used by many programmers to create altcoins - new cryptocurrencies. What does Bitcoin look like on a computer? Essentially, this is an array of transaction data, that is, a huge number of chains of zeros and ones. Most users never see them on their screen, interacting only with Bitcoin wallet addresses. We will dwell on them in a little more detail.

Hardware wallets

In addition, experts in this field do not recommend keeping large amounts of money in online wallets. These services are convenient for quick payments, but for storage it is better to prefer others. For example, hardware. They are reliable and secure, and your bitcoins and keys will always be with you. But even such devices, if necessary, can be quickly connected to a computer in order to sign a transaction using them.

Among the most popular hardware wallets are:

• Trezor;
• Digital Bitbox;
• KeepKey;
• Ledger Nano S.

What does a Bitcoin wallet look like?

A Bitcoin wallet is an electronic file. It can be stored on your computer or external storage device, as well as on a company server that you can access online. A Bitcoin wallet address is an identifier that is assigned to it to perform transactions. It starts with 1 or 3 and includes numbers, as well as upper and lowercase Latin letters. The address length is usually 34 characters.

In addition to the address for transactions, each Bitcoin wallet has a private key created in the blockchain, which gives the owner access to the funds. It cannot be hacked or counterfeited, but losing this key means losing your wallet beyond recovery.

Types of coins

Users have made several attempts to produce physical Bitcoin in the form of a coin made of precious metal (gold, silver). So, in 2013, Mike Caldwell planned to issue 3500 BTC (1 coin = 1 bitcoin). But the US government declared these actions illegal. Therefore, since then, BTC has only been issued in the form of souvenir coins. You can purchase them online on specialized websites, for example, Torgmarket:

• Casascius ($2400);
• Titan Bitcoin ($1500-3000);
• Alitin Mint ($9000-18000);
• Lealana ($100-2400);
• Cryptmint ($40-100);
• Antana ($190-1900);
• Deanrium ($20-2400);
• CoinedBits ($10-30) and others.

Summary

1. Bitcoin, like any other cryptocurrency, has no physical embodiment. This is a payment system that does not have a single control center. Transaction data is stored in encrypted form on the computers of participants in this network around the world. To join this network, just install a client program on your computer.
2. Physical images of Bitcoin coins are rather symbolic. Bitcoin has something in common with gold because it is mined and not issued by central banks. However, at its core, Bitcoin is a collection of encrypted transactions, rather than a coin or bill.
3. Most users see only the keys to a Bitcoin wallet: an external address for transfers and operations and a private key, which gives the owner full access to the funds. Keys are a sequence of characters including Latin letters and numbers.

conclusions

1. A virus miner is a malicious program that poses a threat to the hardware and personal data of PC owners.
2. It is necessary to adhere to current recommendations to reduce the risk of encountering malicious software. This reduces the risk of your computer becoming infected.
3. You should carefully consider which wallet you should use to store your bitcoins.

The text was prepared by: Dmitry Konovalov - author of the Cryptoteam blog. Experience in cryptocurrency trading for more than 5 years.

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Where is cryptocurrency accepted?

Today, you can already purchase various goods and services for BTC and other cryptocurrencies. Digital assets are accepted by different stores:

• Microsoft;
• WordPress;
• MentalMarket;
• Starbucks;
• Burger King;
• Subway;
• Playboy
• JM Bullion
• Papa John's;
• Nano Fitness, etc.

Bitcoin has already become a new reality, which governments, citizens and organizations of different countries reckon with. The cryptocurrency rate is showing steady growth, which has allowed users to receive passive income. Today, the coin is already accepted for payment in various stores, including well-known companies.