Qu’est-ce que le bitcoin (BTC) et comment fonctionne-t-il ?
Bitcoin, the first and most popular of cryptocurrencies, has become important.The digital currency is making waves around the world, from China to the United States to El Salvador, and is gaining a large following.Design, use, use, security: we go through your questions.
Since the end of 2020, one word has been on everyone’s lips: bitcoin.Between the increase in its incredible value in 2021, its ban in some countries, its legalization in others, or recognition as legal currency in El Salvador and the Central African Republic, bitcoin has been making news for three years.
Although it is brighter than ever, the field of cryptocurrencies and bitcoin is still very difficult.
Between mathematical concepts that may seem difficult, English words and many concepts to remember, it is not easy to get a good idea of what is really going on.
Applications, benefits, results: we answer all your questions.
Bitcoin, what is it?
We have to start with the basics: what is bitcoin? It is a cryptocurrency, that is, money that is not created by a central organization.
Indeed, no government or central bank oversees the creation of bitcoin, unlike what happens with advanced fiat currencies.The euro is controlled by the European Central Bank, the dollar is issued by the US Federal Reserve, etc.
It is important to note from the beginning of this article that it is easy to confuse the meanings of bitcoin and cryptocurrency.These are two different concepts: bitcoin is a crypto-currency, but not all crypto-currencies are bitcoin.
To give a basic definition, bitcoin is an independent digital currency, which is regularly generated by an algorithm, and is based on a system called blockchain, or blocks in French.There are no banks or bitcoins: everything happens online.
The previous words are difficult at first glance, but we will explain them all in this article – and in order to better understand how it works and the concept of the creation of bitcoin, it is better to go back, what inspired its beginning.
Who invented bitcoin?
The creator of bitcoin is Satoshi Nakamoto.
The biggest mystery lies in this person, whose real name has not been confirmed, and who has not given a sign of life since the bitcoin blockchain went online in January 2009.
However, here it is not a question of going back to different ideas about his identity, but going back to his desire.Satoshi Nakamoto wanted to create a currency that would be accountable to any government or any banking institution.
He wanted to get to the complete establishment of his own money.
But how can you achieve this goal without a third party fixing the cost of money? How can you make sure it is not misused? A safety net had to be installed.The solution found by Satoshi Nakamoto is the implementation of blockchain.
What is blockchain?
You might be wondering what the definition of blockchain has to do with the paper that is supposed to define bitcoin: you’re right.However, it is important to understand how the blockchain works before moving on to the explanation section on bitcoin: the blockchain is a central part of its development – and of the creation of crypto-currencies.It is, in a sense, the mechanism by which digital currency exists, and which cannot be separated.For example, blockchain is to bitcoin what console is to video games.
More specifically, a blockchain is a database that contains a record of all transactions that have taken place.Therefore, the bitcoin blockchain keeps, since 2009, a list of all transactions that took place there.
The chain has no owner: it is shared simultaneously by all users, who are the owners, which means that they do not have only one place to store it.Blockchain users on their computers (called point bitcoin) are the ones that allow the blockchain to be decentralized.
The chain is transparent, so it can be queried by anyone, it is secure, unverified and stable, which means it is a self-governing system for the users of the chain.This is possible due to its structure: transaction information is stored in data blocks, which are added to the chain as you go (hence its name).
In order for a new block to be added, it must first be verified by the users of a specific protocol, known as the consensus protocol, which uses cryptography technology to ensure that it is safe.This is a very important step, which is called mining.When a new block is added to the chain, it is visible to all point bitcoins – which guarantees its integrity.
How is bitcoin created, or mined?
Mining, let’s talk.The term refers to the process of creating a new block, thus, new units of cryptocurrency – in our case, bitcoin.
This is the way to verify what happens on the blockchain, for us, about bitcoin.
We do not guarantee each transaction individually, but by block, as we have seen.
To verify a new block, network users compete with each other: the first to answer the cryptographic equation (therefore, the most difficult) will get the right to accept the new block.This method is called “consensus protocol”.and it proves that everything point bitcoin has the same quality.
When this new resource is added, the miner who confirmed it is paid for their work: they get new bitcoin units.This is what ensures that not everyone can produce bitcoin as it should, which can affect its value as a currency.
Thanks to the blockchain technology, we have a database that allows us to keep accounts, verify transactions, and reward people who keep them with money.
It’s an independent and stable system, and that’s what has made bitcoin so successful over the years.
How does bitcoin work?
Recap: bitcoin runs on the blockchain, like all other cryptocurrencies, and is created through a process called mining.Here are the basics you need to know about bitcoin.Once Bitcoin is created, it works like any other currency: it can be used to pay for goods or services.
How is the value of bitcoin determined?
Like everything, the price of bitcoin is set by 2 main reasons: its scarcity, and its profit (although we can also add speculation from 2020).
As we have seen, not everyone creates their own bitcoins, because we cannot print new coins ourselves to get wealth.This gives stability to bitcoin.Also, from the beginning, Satoshi Nakamoto planned that only 21 million bitcoins would be created.This increases the availability of bitcoin which makes it a precious commodity, like gold or oil: the rarer the commodity, the more expensive it is.
We must add to this its usefulness: initially, bitcoin was not used as money.Few merchants accepted payment in cryptocurrency, and there was no large market on the Internet.
With the passage of time and the popularity of bitcoin, more and more people began to accept cryptocurrency as a form of payment, thus increasing its value and value.
Finally, in recent years, bitcoin has become more and more popular in terms of the market: the entire trading market has been created around crypto-currency, which helps to fluctuate prices.
The increasing demand for bitcoins, is very appropriate – this is a phenomenon that we saw at work when the price record was broken in October 2021.The following is true: when the price drops, everyone wants to sell already.the drug loses its value completely, causing the price to fall – which is known as bear market.
How to pay with bitcoins?
Since it is a completely digital currency, it is not possible to pay exactly as you are used to: there are no coins, or credit cards (yet) to pay for bitcoin.Paying in bitcoin therefore requires an internet connection.
There are similarities though: first, you’ll need a crypto wallet (often called bag between).Finally, you will need the address you want to transfer your bitcoins to.
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