Bitcoin Definition

- Bitcoin is a virtual and intangible currency. In a way, Bitcoin resembles cash money that we all know, only that you can not touch any of its forms as it happens with coins or bills. In addition to presenting many of the characteristics of this well-known physical medium, when using Bitcoin we also have many of the advantages that the digital medium offers us: it is immediate, it can be sent anywhere in the world, and it has a greater anti-theft security, among other.

Some features:

- It is decentralized: it is not controlled by any State, bank, financial institution or company. This does not mean that governments are eliminated (in fact, some have tried to regulate their use), but they are not capable of imposing themselves.

- Its "anarchic" functioning means that it is not possible to generate inflation by creating more currency (as a country can do), but that the network itself, through mining, manages the bitcoin emission in a decentralized manner and always according to the demand real.

- It is impossible to falsify or duplicate it thanks to a sophisticated cryptographic system that protects users, while simplifying transactions. In addition to the network itself - already safe in itself - users have their own purses, protected by themselves.

- In this way, it can be guaranteed that bitcoin is only spent by its owners, and for the specific operation they decide.

- No intermediaries: Transactions are made directly from person to person. Its peer-to-peer operation allows almost instantaneous transactions, with very low processing costs.

- The transactions are irreversible: it is one of the most outstanding features of Bitcoin. Once a payment is made, it can not be canceled. In any case, the receiver of the currency could make a transaction back to the issuer. In the absence of an intermediary, the return depends on the agreement reached between the two parties directly (and that they are good people, of course).

- Given this situation, alternatives have emerged for the confirmation of transactions, such as different escrow systems that guarantee agreement between parties during a trial period.

- You can exchange bitcoins to euros or other currencies and vice versa, like any other currency. Even in those places that allow it, you can pay the amount indicated in any currency in its equivalent in Bitcoin (no, the University of Alicante has not yet done so, this course requires a transfer).

- It is not necessary to reveal your identity when doing business and preserve your privacy. In this case, there are as many pros as cons to total privacy in the use of bitcoin.

- This is one of the main features that inspired the creation of Bitcoin.

- The money belongs to you 100%; It can not be intervened by anyone or the accounts can be frozen.


Definitions and concepts of the word Bitcoin