A journey to discover Bitcoins, the virtual currency is breaking all records and is worth more than gold. Is it just a flash in the pan?
Many times you have heard about Bitcoin. Often and often in cybersecurity articles, as they are one of the most popular payment methods for cyber criminals and ransomware developers. If you haven't clearly understood what it's all about we explain what Bitcoins are and why they are worth more than gold.
Bitcoins originated as a virtual currency in 2009. Its inventor has unknown identity but is known to the world under the pseudonym of Satoshi Nakamoto. It is basically a non-real currency, intangible, with which, however, you can buy real things. Not existing in a concrete way there are no organizations or banks that control them. This system makes the real value of a Bitcoin very variable, although the virtual currency follows similar standards of rise and fall as real currencies. In recent times, however, Bitcoins have been performing very well, so much so that some economists are beginning to consider Bitcoins as the currency of the future.
How Bitcoins Work
The creation is the exchange of this currency is done according to the peer-to-peer protocol. Anyone can mint it but there is a maximum number of bitcoins that can be minted. This figure is 21 million. And according to different calculations it should be reached in 2140. The use of this currency guarantees anonymity even though each bitcoin has a holder so it can only be used once. Privacy is guaranteed by the fact that it is the holder who decides whether or not to reveal themselves during the transaction. In addition, each coin can have a different address, characterized by 34 alphanumeric characters.
How they are born
Generating Bitcoin is quite complex. The operation is called mining. It used to be free now you can only do it if you are in possession of hardware specialized in Bitcoin mining. Generally, if you belong to a pool, that is a network specialized in the creation of Bitcoin, you must provide it with some computing resources of our computer. The process requires, in fact, a very high computing power. In this way you go to decrypt the algorithms at the base of Bitcoin. Obviously it is also possible to buy them by exchanging them with the euro, on the Net or in physical stores (in Italy there are a total of 5-6).
The future of Bitcoin
For many Bitcoins do not have a future because they are not easily regularized. For others, however, this is the currency of the future. It is no coincidence that in recent times the value of Bitcoins have undergone a surge. From April 2016 to today, their value has risen from just under 400 euros to over nine thousand euros. And the reason can be linked to geopolitical scenarios. If China and Russia began to accept Bitcoins as an alternative to the U.S. dollar, the value of this virtual currency would skyrocket. A not too utopian prediction given that most Bitcoin exchanges take place in China. Moreover, the Chinese government, after having put limits on Bitcoin to avoid speculation, has no longer hindered this virtual currency. Brexit and uncertainty about the future of the European Union are scenarios that increase the potential value of Bitcoins. Russell Newton, former head of JP Morgan, has predicted an imminent breakup of the euro project and for him the Bitcoins will fill the void left by the abandonment of the single currency in European states.
Bitcoin, the new gold
Underlining the growth of Bitcoin is the fact that many investors are abandoning gold to bet everything on the virtual currency. This is more convenient and being digital is easier to exchange. This is not the first time Bitcoins have surpassed the value of gold in exchanges. The last time the virtual currency succeeded then suffered a major collapse. But experts are sure that the value of Bitcoins in the coming months will increase again.