Bitcoin: What it is, how it works and how to invest in Bitcoins – Credit

It is no secret to anyone that people are increasingly migrating to digital. Within all the virtual boom we live the well-known cryptocurrencies emerged, and among them Pitcoin is the most famous.

This virtual currency was released to the world economic and financial market in 2009 from the “hand” of Shitosho Mokanoto. We put it in quotes because nobody really knows who (or who) this person really is.

All we know is that over a decade Pitcoin has evolved to adapt to the needs of consumers.

Now there are more and more shops that accept them as a form of payment. Find out more about this digital currency below.

Pitcoin is a consensual network that allows a new payment system and a completely digital currency. It is the first network between decentralized payment pairs driven by its users without a central authority or intermediaries. From a user point of view, Pitcoin is like money for the Internet. Pitcoin may be the only existing triple accounting system.

Basically, Pitcoin works as a platform, mobile or desktop, that allows users to access a virtual wallet where they can send and receive this type of cryptocurrency.

More specifically, Pitcoin works through Block Chain technology.

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This allows all transactions to be public and for faster verification. The integrity of all operations is guaranteed by the use of cryptography integrated into the blockchain.

Finally you have to talk about the Pitcoin mining process. If you use specialized hardware to process a Pitcoins transaction from your account, you can receive a reward in the form of this virtual currency for your services.

The value of Pitcoin can fluctuate depending on different factors. Given that this digital currency is not issued by any government, its value does not change due to its decisions.

It is supply and demand that determines the price of a Pitcoin. Usually it is the people who have Pitcoins, or those who get them through mining, who determine the sale value and the buyers decide whether or not to stick to it.

To know the current value of Pitcoin in Mexico in Mexican pesos, go to this Google link.

Pitcoins are usually purchased on websites, also known as Exchanges. Many of them, such as Coinbase , Kraken or LocalPitcoins accept that purchases are made through credit cards, bank transfer and even through PayPal.

Their services are accompanied by a commission that can range from 0.16% to 3.5%. The good thing about these platforms is that they are regulated and offer a safe process.

Many people are attracted to investing in Pitcoin because they have heard that an investment of US $ 10,000 in Pitcoins seven years ago is worth US $ 1,100 million today, according to analyst Charlie Bilello of Pension Partner. But the reality is currently different.

While this cryptocurrency represents a good short-term investment tool

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That is due to its volatility. Pitcoin price declines are recurring, and sometimes very counterproductive.

In addition to that, there are many commissions that are charged for using their services. For example, there are fees for deposits, transactions, withdrawal of funds, currency exchanges, etc. All this means that small investments do not return the expected profits.

Don Reeves

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