What is Bitcoin?

What is Bitcoin? It is electronic money that is sent as easily as a message.

What’s so special about it?

Normally when you send money to someone, you have to do it through a third party, almost always this is a bank. You need the bank to approve the transaction, so you have to stick to their schedules and often to their high commissions. If you want to send money to someone from another bank, you depend on those two banks. And let’s not talk about when you want to send money to someone who lives outside your country, you can depend on 3 or more banks!

On the other hand, when you send bitcoin, you don’t need a bank to verify it. Transactions are verified by a network of people who belong to the Bitcoin network. This is why we say that bitcoin is decentralized. It is also practically inaccessible and 100% transparent, giving security to all movements.

The most special thing is that this money was born to be used with the internet. It is money that makes more sense with our current life of connection at all times.

When does it arise?

At the height of the financial crisis of 2008, a 9-page document called “Bitcoin a peer to peer electronic cash system” written by a certain Satoshi Nakamoto appears on the Internet.

Satoshi, whose identity is still unknown, proposes a new decentralized financial model at a time when financial institutions around the world were suffering historical losses. The abstract of this paper perfectly sums up Satoshi’s main objective; namely, that Bitcoin be a two-party payment alternative without the need for a third party (financial institution); in other words, a network of peer-to-peer transactions.

Already more technical, what is Bitcoin?

Bitcoin is a digital asset created and intended to be a medium of exchange between users, a store of value and a unit of account. To be money finally, but with the main attraction that its transfers are fully decentralized, ie it does not require the intervention of a third party (financial institution) to operate. The creation and distribution of bitcoin is done through the resolution of cryptographic problems by the “miners” who are part of the network and not by a central authority. This is why the concept of “criptomoneda”. Nobody owns Bitcoin, there is no CEO, no central offices, there are only developers working to improve it.

How does this network work? What supports it?

In the world of crypto coins, bitcoin is the pioneer and came to change the rules. The technology behind the bitcoin, the Blockchain, is a network that verifies and approves bitcoin transactions in minutes. It is a network that approves transactions on a consensual basis – all parties have to agree. You can be part of the blockchain network from anywhere in the world, as long as you have a computer with Internet. Anyone can see the transactions that are taking place in real time. There is nothing hidden. It is this transparency that has created this revolution from which projects have now arisen and other crypto currencies that are now part of the cryptomundo.

Why is bitcoin worth it?

Answering the classic first question asked when talking about bitcoin, do you hear and why is it worth, if it is not backed by governments or gold?

First I want to remind you that since 1973 no economy has been backed by gold. Before, world economies were backed by the US dollar, which in turn was backed by gold reserves. The “temporary” dollar-to-gold non-convertibility, announced by Nixon in his famous 1971 speech, is the current reality.

Bitcoin has value for the same reason that trust money has value: it facilitates exchanges and serves as a store of value. The difference is that trust money has value and confidence because, as a government-guided society, we accept that it is the primary method as a means of exchange.

Bitcoin has value because all participants in this community believe and agree that it does. The more globalized is its use as a currency of current use and the more developers work to facilitate its use, the more value it will have. At the same time, he made it clear that I am talking about value and not price.

What is it used for?

Bitcoin can be used for many things. Starting with sending remittances or in general, sending money abroad. Being an international currency, bitcoin allows you to send money from one country to another without loss of commissions or exchange rates. For payments, bitcoin transactions allow for the payment of goods or services as long as the trade in question accepts them. For online payments, the same concept as with payments but good… directly on the Internet. Discover what you can pay with bitcoin in Mexico.

Bitcoin began, continues and will continue to be a currency that does not depend on any institution and with which you can send money to a person or company without having to go through a bank or any other financial institution.

For citizens of the world, cryptocurrencies are low-cost money transfers to and from anywhere in the world. For Mexicans too, with the benefit of having a regulatory framework (Fintech Law) and a new government that has shown interest in taking advantage of blockchain technology to clarify the use of public resources. Bitcoin and its use cases continue to grow, and from the hand of Bitso you will be able to access and benefit from this technology.

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