What is Bitcoin…?
Technically: Bitcoin is the term used to name a transferable digital asset that also has a finite number set at 21 million.
Bitcoin is a virtual currency that can serve as a medium of exchange, payment, or investment; however, unlike other currencies, it is defined as a decentralized electronic currency, meaning no one controls it.
How are they generated?
Bitcoin does not have a central issuer like dollars or euros; the cryptocurrency is produced by individuals and companies worldwide dedicating significant resources to “mining.”
To be generated, a computer code/algorithm is used.
The system is programmed to generate a fixed number of bitcoins per unit of time through computers called miners. Currently, that number is set at 25 bitcoins every ten minutes, although it is programmed to halve every 4 years. Thus, from 2017 onwards, it is expected that 12.55 bitcoins will be issued every ten minutes. Production will continue until 2140, when the cap of 21 million units in circulation is reached.
Who created it?
No one knows. It is a mystery. Only a pseudonym of its author or authors is known: Satoshi Nakamoto, and reference is made to a scientific article published via the Cryptography Mailing List in November 2008. Many rumors exist, but nothing is certain.
What is Blockchain?
Blockchain is the name established for the technology known as a data block that forms each transaction within the network of “mining” computers.
Bitcoin, a bubble?
This question is very difficult to answer. There is a lot of information suggesting that Bitcoin is another bubble like the “tulips.” Conversely, there is also a lot of information claiming that 1 bitcoin will trade for more than $100,000… One thing is certain: as of today, 12/19/2017, one bitcoin trades for more than €15,000.
The reality is that no one knows, and anything can happen.
More info…
In subsequent posts, we will explain what exchanges, ICOs, and altcoins are. Also, more terminology related to cryptocurrencies.
For more precise information, we provide a document from the Bank of Spain on Bitcoin, issued in 2014, as well as a joint statement from the CNMV and the Bank of Spain from 2018.
[gdlr_styled_box content_color=”#ffffff” background_color=”#9ada55″ corner_color=”#3d6817″] BITCOIN: BANK OF SPAIN REPORT. Date 2014. PDF Format[/gdlr_styled_box]
[gdlr_styled_box content_color=”#ffffff” background_color=”#9ada55″ corner_color=”#3d6817″] Joint statement from the CNMV and the Bank of Spain on “cryptocurrencies” and “initial coin offerings” (ICOs)[/gdlr_styled_box]
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