What is bitcoin and how it works?

 

What is bitcoin and how it works?

On the internet there are many sources in which you will find information about bitcoin, however, within these you will also come across terms that will confuse you and get you lost on the subject of bitcoin and cryptocurrencies.

For your luck, in this blog I will explain in a simple and understandable way what bitcoin is and how the world of cryptocurrencies works.

First of all bitcoin is a cryptocurrency, and just like the dollar, the euro, the yen, etc. you can buy things, but with the difference, that bitcoin is a digital currency and therefore there is no government or bank that can own and manage it, so the same "people" is the one who manages it among them. And what does this mean? that everyone manages everyone's accounts, and so that there is no collision of transactions and accounts, a system of "mining" is used, that is, people who have supercomputers are responsible for facilitating the movement of cryptocurrencies, these people also, have a method for each transaction or movement has priority, these transactions are grouped into blocks and are through "raffles" in which a winning block is chosen to have priority.

But why do people spend on supercomputers to validate other people's transactions and movements and this is where it gets interesting since 1 bitcoin at the time of writing this blog is about $37,000, and those who validate transactions get a good reward.

Today it is very difficult to enter the world of cryptocurrencies since their price is too high in any currency in the world, not to mention that there is more and more competition in this business, a great example is the DogeCoin driven by billionaire Elon Musk which skyrockets its price every time this person names them in his tweets.

That's all I can tell you about this world in which more and more users are joining; and which may become the future of currencies.