The Bitcoin price has risen by more than 740 percent since the beginning and now stands at a record level of about 8295 US dollars. What drives the price so high?
The recent rally in cryptocurrency was fueled mainly by the possibility of introducing a Bitcoin futures in the US. Previously, among other things, plans for a regulated marketplace for such digital currencies supported the share price.
The six largest crypto currencies. Bitcoin Code is the clear No. 1
What is the difference of such art currencies to euro, dollar and Co.?
Behind currencies such as the Bitcoin are neither states nor central banks. The currency there is only digital. The share price or the price of Bitcoins results solely by supply and demand. If in doubt no more demand for the crypto money there, it could completely lose its value. Increases the demand on the other hand to as at the time, it could also significantly go up with the course.
What are the main features of Bitcoin?
With the crypto currency transactions to governments and banks can be handled by: You are directly transferred from one address to another. Each transaction of Bitcoins is visible to anyone about to Blockchain.info . The website shows how many coins are just of what Bitcoin address to which transferred. Who is behind the respective address remains secret. The transactions are encrypted – with Bitcoins can pay anonymously. That is the reason why they have a bad reputation as a currency for criminals. The digital coins are the currency of the darknet, so the anonymous part of the Internet.
What have Bitcoin and gold, according to many market players have in common?
Gold is considered a safe haven in times of crisis. Hintergoldingen as behind Bitcoin are not states or governments. Unlike so-called fiat currencies such as euro or dollar Gold can not be increased arbitrarily, and is therefore protected against inflation. Also Bitcoins can not be increased at will. That is its technical nature. In the underlying program code stipulates that there shall be a maximum of 21 million digital coins. This makes the monetary gold similar. So far, according Bitcoin.info were “mined” approximately 16.7 million Bitcoins. The more coins in circulation, the more complex winning more virtual coins. Meanwhile, going almost exclusively with large data centers. Here, the power consumption by the computing power required by the increasingly for digging,
What is the technical background of Bitcoin?
2008 one or more programmers invented under the name Satoshi Nakamoto Bitcoin. The digital currency is generated on computers. The technique is based on Bitcoin, called block chain. It can be thought of as a chain of information about all Bitcoin transactions that were ever made. So to speak, a sort of digital bookkeeping. Everyone who belongs to the network has the same and complete information on all transactions. When a new block is generated from transactions, he will be attached to the chain. This is the point at which there are the so-called “Miner” to the train.
The generation of new Bitcoins is called “mining”. To attract new coins provide users the network computing power. The BTC-ECHO page describes the process this way: If a new block generated by transactions Miner verify them and convert the block into something shorter to. The result is a so-called hash – a sequence of letters and numbers. The code is stored in the respectively currently last block of the chain, then the next new block is in turn attached to the. Miner are competing on the lookout for new block – they are successful, they were given new Bitcoins. Depending on the contribution of computing power Bitcoins are awarded proportionally. until it reaches the limit of 21 million coins, the amount is so although more slowly, but steadily larger. By mining the block chain is protected from tampering. A Bitcoin can not be spent twice, for example.
Besides Bitcoin there is Bitcoin Cash and Bitcoin gold. Why?
On October 25, the second spin-off has already taken place in the young life of cryptocurrency: from Bitcoin was diverted Bitcoin gold. This process is called “Hard Fork”. With Bitcoin gold is to make it for private people again possible to mine Bitcoin. Bitcoin gold went free to owners of Bitcoins.
Bitcoin Cash was cleaved from Bitcoin on 1 August. The background was a dispute over the speed of Bitcoin transactions. At the same time, a limited number of transactions is possible. This means that there will be long waiting periods and / or high fees. An update called “Segwit2x” should make the transactions more quickly, in which the size of a block is extended. A smaller group of miners was not enough. so they called Bitcoin cash into being. Here are the block eight times as large as the original. Each Bitcoin owners got free Bitcoin Cash.