Bitcoin safety and prospects

Bitcoin is the first and most popular system of cryptocurrencies (payment units that doesn't have a material form). Bitcoin units issue and processing is not controlled by any government: they arise as a result of mathematical algorithm simultaneous collective solution by millions of users called miners: generation of transaction block. The one who feals with each block, gets a "prize" - 12.5 BTC. This process is called mining. Particularly this specific feature provided the 3 main qualities of bitcoins: 1) impossibility of forgery; 2) the absence of inflation; 3) anonymity of transactions.

Why is it safe?

Starting from the BTC announce in 2009 Bitcoin rate has suffered the periods of rapid growth and unexpected recession, and these units turned from a half-experiment of a narrow circle of programmers into a rather popular way of payments, funds saving and even earnings. In addition to the openness, anonymity and control-free of the Bitcoin system, payers and investors are attracted by its reliability: the BTC wallet cannot be cracked and frauded due to the impossibility of bitcoin spending more than 1 time.

bitcoin

Bitcoin reliability owe to Blockchain technology that allows to store all the transaction history performed without any controlling authority. No transaction is considered to be confirmed until information about it is formed into a special block, what is more each block stores information about the previous one, the previous one - about the one before it, and so on. This forms the chain that stores information about absolutely all transactions in the system. All the Blockchain participants are both information storers and supervisors.

What do we need bitcoins for?

Initially BTC were used to pay for software, website development and hosting, but today it is a full-fledged online shopping tool. You can use BTC for buying a wide range of products - from Dell hardware to Microsoft xBox consoles. To start using Bitcoins you need to prepare a "place" for them, which can be: 1) a wallet application that stores them in the computer; 2) client application or online wallet (then bitcoins are stored in the Web). This software can be used not only for online payments but also in usual store that supports btc as a payment method via a QR-code scanned by the mobile phone. To create wallets you do not need to provide any personal data or scans of documents, accounts can not be blocked.

Where can I get them?

You can get the first coins through mining, payment for services, donation, but most often they are simply bought in exchangers, individuals or stock markets. To buy in stock exchanges, you need to: 1) register; 2) create an account; 3) transfer a certain amount to it; 4) create an order, indicating the necessary amount of bitcoins and the price of them / see the sellers orders; 5) execute the transaction; 6) after BTC amount receipt it can be transfered to your wallet. Stock markets can take a small fee for the transaction (about 0.1%), and the transactions inside the stock are performed instantly.

Requiring no authorization or verification, BTC-e stock market holds the leadership in Russian speaking web segment. BTC-e is also exchanging bitcoins for euros, rubles and US dollars, while on another large platforms like Bitstamp or Bitfinex - only for dollars. In other respects, the mechanism of stocks operation is quite similar.

Detailed information on the available directions for bitcoins exchange can be found here.