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Crypto: Bitcoin, Ethereum, Monero - How is it made?

 

Crypto: Bitcoin, Ethereum, Monero - How is it made?

What is cryptocurrency?

Cryptocurrencies are called Bitcoin, Ethereum, or Monero. These are coins that can be loaded via a smartphone and a lot of goods can be purchased with them online. There are currently approximately 4,100 of these cryptocurrencies - how are they dealt with?

 

Interest in the Bitcoin currency is increasing day by day in light of its unprecedented rise in price, and the constant talk about its advantages and the possibility of replacing traditional currencies in the future.

 

In a report published by the French newspaper "lefigaro", the writers: Fabrice Nodi Langlois, Ingrid Vergara, Hervé Russo, Daniel Guino and Jorge Carasso, review a number of basic information about the most famous cryptocurrency in the world, by answering 7 questions.

 

 

How is bitcoin made?

Bitcoin is governed by a computer protocol invented in 2009 by an unknown group under the pseudonym, Satoshi Nakamoto, and the currency is created under a process called mining.

 

Mining operations are carried out through computers equipped with high computing capabilities, and these devices constitute a decentralized network that ensures transactions and verification of sales and purchases, through what is known as the blockchain technology.

 

Each unit of divisible Bitcoin is divided into parts, and it is expected that no more than 21 million coins will be created in the long term to reduce inflation risk.

 

 

Mining

Bitcoin mining is intended to extract and mine it. To simplify the concept, the process is similar to extracting gold. Extracting it from the ground requires specific equipment dedicated to that purpose and a great effort. It is similar to Bitcoin mining. It requires dedicated equipment and software that decodes complex codes and calculations. These programs are free on the Internet and you can mine Bitcoin. On high-performance computers that can withstand very high pressure for these programs, as for cloud mining, which is simply that companies specialized in the field called the pool, which is to gather a group of people with the same goal, each paying a percentage of the money is an investment and when Profit takes money according to the percentage set.

  

 

Can it be used as a means of payment?

Originally, Bitcoin was designed to transfer money electronically from one person to another, without the need for a central authority to verify the validity of this transaction, and this cryptocurrency is traded on specialized platforms at a price determined by the law of supply and demand.

 

So far, Bitcoin has not been technologically transformed into a currency of exchange on a global scale, but many companies and brands accept the transaction to facilitate payments.

 

Bitcoin is not widely spread as a means of payment in developed countries that have an efficient infrastructure for traditional payment systems, unlike countries where bank accounts are difficult to access, or which suffer from high inflation rates such as Venezuela or Argentina.

 

 

Gold and Bitcoin?

The boom of cryptocurrencies coincided with the worst economic recession since the thirties of the last century, and proponents of the bitcoin believe that it is a safe haven, and that it will take the place of gold as a store of value, especially since the yellow metal is expensive in terms of storage, can be confiscated, and cannot be divided easily, while bitcoin is easy to store and can The division is almost infinite, can be accessed everywhere, and is completely independent of government authorities.

 

On the other hand, critics believe that the value of the cryptocurrency is unrealistic and unstable, as it is not globally recognized, cannot be traded in banks, and is rejected by most companies in the world, unlike gold, which is globally recognized, which represents a real haven against inflation.


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