Who is responsible for the blockchain code
Bitcoin and Co .: cryptocurrency simply explained
What are the benefits of Bitcoin?
The most important advantage of Bitcoin is its independence from financial institutions. Transactions are carried out directly between buyer and seller. If you want to make an international transfer with the help of a bank, you need patience. There are also exchange and bank fees. A bank account can also have a limit. Bitcoin has no such restriction: If you want to sell all of your cryptocurrency, you can do so within a few minutes.
The generation of new bitcoins is based on a complicated algorithm. This is designed in such a way that there will never be more than 21 million bitcoins. Proponents of cyber currency see this as an advantage over traditional currencies. After all, central banks can decide how much money is printed. According to the proponents, the price of Bitcoin should stabilize as soon as all 21 million Bitcoins are in circulation.
Thanks to the public blockchain, Bitcoin is transparent. This public makes the cryptocurrency very safe at the same time. Nobody will be able to manipulate all full nodes at the same time. Despite this open accounting, the owners of Bitcoins remain pseudonymous. Because you don't manage your assets with your own name, but with an identification code. Bitcoin can also be used worldwide, it does not have to be exchanged for other currencies.
And what are the downsides of Bitcoin?
Even the biggest fans of the cryptocurrency know: Bitcoin is still in its infancy. Much is still unclear, needs clearer rules and, above all, time. In the early years, Bitcoin was used to illegally trade drugs and weapons. The tax authorities are also a thorn in the side of the crypto currencies, because clear laws are still missing.
At the moment, Bitcoin is not necessarily suitable as a means of payment, the rate fluctuations are too great for that. That may be the reason why Bitcoin is hardly accepted as a means of payment outside of the digital world. Anyone who pays with it anyway cannot avoid the fees. These are used to pay miners.
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