With the advent of the first electronic means of payment, people increasingly began to use non-cash payments on the Internet. To earn money on this type of monetary transactions, commissions began to be used for the withdrawal of electronic funds into cash, as well as for other transactions such as exchange, transfer.
"Blockchain, bitcoin, mining" - these words are rapidly entering the everyday speech of Ukrainians as concepts that denote a general idea of the crypto world. The first cryptocurrency originated about 10 years ago, and having a symbolic value was called Bitcoin. As its demand grew, so did its cost. Looking back, the difference in how the price of a digital code grew is visible in thousands of times.
In 2009, it was proposed to introduce a virtual currency that was not backed by anything, but became a unique means of payment. Anonymous Satoshi Nikamoto created the now popular currency of the future, which is now known as "Bitcoin". Bitcoin was invented to make payments, the key features of which were: speed of transactions, low commission cost, and the price of the cryptocurrency itself was regulated by supply and demand of crypto market participants.
By this time, about a thousand cryptocurrencies have already been created, but Bitcoin remains the most popular among them. Bitcoin capitalization occupies 40 % of the entire market and amounts to 42 billion dollars. Bitcoin's popularity is explained by the fact that it is the first cryptocurrency that provoked the emergence of other analogues. At the moment, thousands of types of cryptocurrencies exist and its value changes every day.
The "mining" of cryptocurrency is carried out by "mining", that is, calculating complex algorithms using powerful processors. Virtual money and all information about transactions with it are stored in a special system called "blockchain". The system is designed in such a way that interference in it is almost impossible without the knowledge of other users.
Since 2009, any user can create a Bitcoin wallet and make payment transactions through it without a commission. But in order to increase the speed of the transaction, you still have to pay a commission, but it is still small. The commission has become optional, but when you pay it, the transaction (transfer) time increases.
It is impossible to penetrate a user's personal electronic wallet. Since calculating the key, which is only in your possession, requires large computing power, which does not make sense to use for decrypting one electronic wallet.
The biggest danger that experts believe the crypto world poses is the volatility of the rate. Many people continue to invest in cryptocurrency in order to make a profit from the increase in the rate. But a similar danger exists in terms of investing in securities and other investment projects.
To eliminate fraud attempts, it was decided to conduct operations in the public domain. Every person using cryptocurrency can see the path of the bitcoin transfer. But the information is provided anonymously, so it is unlikely that you can find out your real name and surname from there.
Despite the fact that cryptocurrency is not backed by gold reserves or the economy of any country, the currency of the future already has a certain rate and is listed on the stock exchange. The popularity of information money increases with the number of people who use bitcoins, and the rate grows, which is due to the limited issue of such currency. What the rate will be after the last bitcoin is mined is unknown, but the algorithm has shown that more than 21 million monetary units cannot be created. This number has not yet been reached.
In the race for Bitcoin mining, it is important to remember and understand that the creators wanted to create a virtual analogue of gold. The mathematical and cryptographic model of its implementation was tailored precisely for this. For Its total supply must be limited, the extraction of new monetary units is difficult (miners conduct a resource-intensive enumeration of numbers, the hash of which will fit into a certain pattern - and there is no way to bypass this (print new money).
The main feature of any cryptocurrency analogue is that it has no owner. It does not belong to anyone, which means there is no one to pay the commission to. The algorithm embedded in the system does not give anyone access to either courts or officials to interfere with the system. Of course, these systems have another side, but it is this freedom that distinguishes it from other known currencies.
