What determines the cost of bitcoin?

Why is bitcoin worth so much?

If ordinary fiat money is now provided by the country’s GDP and politics, then bitcoin is not provided by gold, silver, or GDP. Bitcoin is pure mathematics. It is provided only by interest in this technology.

The relations BTC / USD, BTC / EUR, etc., as for the usual currency, depends on the market. The news that the state has adopted the MTC as an official payment method (hello to Belarus) – the MTC has grown. A large online store announced that it now accepts payments in cue ball – the rate is growing. The official ban on military-technical cooperation in the country is “cue ball, where are you going?”

There is positive and negative news for cryptocurrencies. They mainly affect the ratio of bitcoin to fiat currency, as there is this fiat currency in this respect … there is no getting away from it yet.

We can not say about the issue of bitcoin. Here the resemblance of bitcoin to gold pops up. As with gold, the number of bitcoins that can be mined (we will touch on concepts a bit later) is limited by number. Only 21 million. Some have already been mined, some are mined right now and will be mined later. Bitcoin mining difficulty is recalculated every 2016 blocks. One block is mined in 10 minutes. Mining becomes harder and harder every year, since there are more and more computers involved in mining, and the time for solving problems to confirm the block should always remain the same – 10 minutes. By the way, increasing the complexity of bitcoin mining just shows interest in bitcoin. According to forecasts, the last coin will be mined in 2140.

How to start using a bitcoin wallet?

The main task of a bitcoin wallet is to store a private digital key that provides access to bitcoin addresses and the transfer signature, i.e. access to your funds in the bitcoin network.

Therefore, first, you need to decide which wallet to use. There are several types of software:

1. Bitcoin wallet for PC.

  • Official Bitcoin Core wallet ( https://bitcoin.org/en/download over 50 GB)
  • Thin Electrum Wallet ( https://electrum.org/download 35 MB)
  • Armory wallet ( https://www.bitcoinarmory.com/download/ 24 MB, works only with Bitcoin-Qt)
  • Thin Multibit Wallet ( https://multibit.org/download.html 32 MB)

PC wallets are divided into two types: “thick” and “thin”. Tolstoy downloads and stores the entire blockchain on your computer requires high performance and a lot of GB of memory on your hard drive (Bitcoin Core). Thin uses third-party services for the blockchain and does not take up much space on the computer (Electrum, Multibit). Thick is safer than thin just because of the lack of third-party services, but inconvenient in the military-technical cooperation. Start advising with the subtle.

In this case, you are responsible for saving funds in your wallet.

Also, if you use Bitcoin Core and Armory, you can increase the level of anonymity to the degree of the darknet, by accessing the network using Tor.

I use the Electrum . How to start working with him, I will describe a little lower.

Advantages of such wallets: high level of security, full control of all transactions.

Cons : inconvenient to use…

Bitcoins

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