What is the bitcoin e-currency?
The name of the electronic currency, Bitcoin, must have passed many readers, especially those who follow technical news but without a complete understanding of what Bitcoin is or how it is used and how it works.
Simply put, Bitcoin is an electronic currency that can be compared to other currencies such as the Dollar or the Euro, but with several basic differences, the most prominent of which is that this currency is a completely electronic currency that trades online only without a physical presence.
It also varies from traditional currencies in that it lacks a central regulating agency, although it may be used in the same way as any other currency for online transactions or even exchanged into traditional currencies.
Bitcoin, which was first introduced in 2009, says the goal is to change the global economy in the same way that the Web has changed publishing methods. Who created this coin and how does it work?
decentralized currency
A person who called himself Satoshi Nakamoto first put forward the idea of Bitcoin in a research paper, describing it as a peer-to-peer electronic cash system, a technical term that indicates direct communication between two users without the assistance of an intermediary.
Bitcoin is described as an anonymous digital currency, meaning that it does not have a serial number or any other means of any kind that allows tracking what was spent to reach the seller or buyer, which makes it a popular idea for both privacy advocates, and sellers of illegal goods ( Like drugs) online alike.
Bitcoin is based on financial transactions between two people directly without an intermediary body regulating these transactions, where the money goes from one user account to another instantly and without any transfer fees and without going through any banks or intermediary bodies of any kind.
Bitcoin spending
Bitcoin is supported by a growing number of sites, including large and diverse companies and sites, such as sites selling hosting services, reserving domain names, social networking, video, and music sites.
Although there is a relatively small number of sites that accept bitcoin payments for their products compared to sites that deal in traditional currencies, bitcoin is supported by a growing category of sites, includes vast and diversified organizations and sites, such as those offering hosting services, reserving domain names, social networking, video, and music sites There are also a number of websites that sell a variety of things.
" Although a federal judge in the United States has decided that Bitcoin is money and a sort of cash that may be regulated by the government, the currency The US government has yet to formally acknowledge it."
In addition to purchasing products, the user can exchange his Bitcoin cash for other real currencies. This exchange takes place between the same users who want to sell bitcoins and buy real currencies for them or vice versa.
As a result, Bitcoin has its own exchange rate, and this price is on the rise, reaching $120 today, down from just a few dollars two years ago.
international recognition
Germany is the only country that has officially recognized Bitcoin as a type of electronic money, and thus the German government considered that it can tax the profits made by Individual financial transactions are tax-exempt, while organizations dealing with "Bitcoin" are not.
A federal judge in the United States has determined that Bitcoin is a currency and a sort of cash that may be regulated by the government, although the currency has The United States has not yet formally acknowledged it.
Some see the formal acceptance as a positive step toward giving the currency more validity, while others see it as a step toward further regulation. one of the advantages of Bitcoin as money that is not subject to any party is that it may be used to link it to governments.
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