Bitcoin – what you didnt dare ask

What is Bitcoin?

It’s electronic money that is sent as easily as a message.

What’s so special about it?

Usually when you send money to someone, you have to do it through a third party, most of the time this is a bank. You need the bank to approve the transaction, so you have to stick to their schedule and often their high fees. 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 banks or more!

On the other hand, when you send bitcoin, you don’t need a bank to verify it. The 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 unhackable 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 come up?

At the height of the financial crisis in 2008, a nine-page piece of writing called “Bitcoin a peer to -peer electronic cash system” by one Satoshi Nakamoto appeared on the Internet.

Satoshi, whose identity is still unknown, proposes a new decentralized financial model in a period when financial institutions around the world were suffering historic losses. The abstract of this paper perfectly summarizes Satoshi’s main objective; namely, that Bitcoin be a payment alternative between two parties without the need for a third party (financial institution); in other words, a network of transactions between peers.

Now more technical, what is Bitcoin?

Bitcoin is a digital asset created and intended to be a means of exchange between users, a deposit of value and a unit of account. To finally be money, but with the main attraction that its transfers are totally decentralized; that is, it does not require the intervention of a third party (financial institution) to operate. The creation and distribution of the 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 “crypto-currency”. Nobody owns Bitcoin, there is no CEO, no central office, there are only developers working to improve it.

How does this network work? What supports it?

In the world of cryptomoney, Bitcoin is the pioneer and came to change the rules. The technology behind bitcoin, the Blockchain, is a network that verifies and approves bitcoin transactions in a matter of minutes. It is a network that approves transactions in a consensus manner – 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 being made in real time. There is nothing hidden. It is this transparency that has created this revolution from which projects and other crypto-currencies have now emerged that are now part of the cryptoman world.

Why is bitcoin worth it?

Answering the classic first question that is 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 is backed by gold. Before that, the world economies were backed by the US dollar, which was in turn backed by gold reserves. The “temporary” non-convertibility of the dollar to gold, announced by Nixon in his famous 1971 speech, is the reality today.

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 trust because, as a government-led society, we accept that it is the primary method of exchange.

Bitcoin has value because we believe and agree all participants in this community that it does. The more globalised its use as a common currency and the more developers work to facilitate its use, the more value it will have. To all this, 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 generally sending money abroad. Being an international currency, bitcoin allows you to send money from one country to another without any losses from 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 well… directly on the Internet. Find out what you can pay with bitcoin in Mexico.

Bitcoin started, 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 the citizens of the world, crypto currencies are low-cost money transfers to and from anywhere in the world. For Mexicans too, with the benefit of having a regulatory framework (Fintech Act) 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 with Bitso you will be able to access and benefit from this technology.

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