Archive | July 2016

Short explanation of Bitcoin and why its value has just been halved the second time in its history

The Bitcoin is unlike any other legal currency printed by governments. The origins date back to 2008 and is one of the first iteration of the crypto-currency. The Bitcoin is decentralized, in opposition to the regular centralized bank system. While a government decides when to print money and is ultimately responsible for printing it, the bitcoins are created at a known rate and its distribution is limited. We’re going to look at some of the basics behind the Bitcoin to better understand what this change means.

The Bitcoin network is based on the so called blockchain. It’s a public and shared registry in which are contained informations regarding the transactions between the users in chronological order. From here descends the term of bitcoin mining in which the word “mining” may even be kind of misleading. Each time a transaction is made, it has to receive confirmations in order to not lead to phenomena like double-spending where someone would spend the same amount of bitcoin twice (imagine going to the baker and buy 1 euro worth of bread; rather than handing it over to the baker you keep it along with the bread to buy something else). Larger transactions are more likely to get confirmed first, with 6 confirmations regarded as a good spot at which the transaction is considered to be relatively safe. Read More…

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