What is Bitcoin

Where is this bitcoin?

Investors and journalists have compared the cost of investing in cryptocurrencies such as Bitcoin to the American gold rush of the mid-19th century. 

Others compare the craze for digital coins to the craze for Dutch tulips in the 18th century. Queda por ver si Bitcoin y sus primos digitales perdurarán y se convertirán en un nuevo patrón oro o llevarán al mercado a una caida como la manía de los tulipanes holandeses.

The value of Bitcoin

At the end of August 2017, Bitcoin had an assigned trade value of almost $5,000 for a single Bitcoin. This far exceeded the value of gold, which at the time was about $1,300. However, two weeks after the digital currency's high, the value of Bitcoin fell to approximately $3,000. Anyone who invested real currency in Bitcoin in mid-August and did not withdraw from the market before the price drop lost almost 40 percent of the investment.

Digital currency

Digital currencies or digital currencies are electronic tokens generated by computer networks to replace traditional currencies. Paying for something with digital currency is not like paying with a credit card, debit card, PayPal, or ApplePay, all of which electronically access conventional currencies such as US dollars, British pounds, and Chinese renminbi.

Creating digital currency

To create cryptocurrencies, a distributed network of computers in a closed Internet-based community works through a set of complex cryptographic algorithms, and the result of specialized programs is a cryptocurrency represented by digital tokens. Tokens are only valid for trading within digital communities, and individuals and organizations can open accounts (also called wallets) in specialized communities.

Bitcoin Security

Since 2010, there have been nearly a dozen attacks on cryptocurrency exchanges. Losses range from hundreds of millions (of dollars). However, relatively speaking, conventional banking and financial institutions have lost billions of dollars to cybercriminals during this same period.