The price of bit coins is known through internet portals specialized in the trade of this virtual currency. There is a quote in real time, as a result of the movements of demand and supply that are recorded by the members of the system. Since in the case of bit coin their number is limited in time, experts defend that their price will also tend to increase if the number of users continues to increase (hence its controversial pyramidal nature). The proponents of bit coin defend that it is not pyramid because no one is promised profitability and there is no single issuer that benefits. But as in any investment, there is no guarantee that the value of bit coin will not change.
What are bitcoin miners?
The new 1 bitcoin are generated by a decentralized process called “mining”. This process is based on the fact that individuals are rewarded by the network for their services. Bit coin miners process transactions and secure the network using specialized hardware and collect bit coins in exchange for this service. Bit coins are created at predictable and decreasing speeds. The number of bit coins created each year is reduced by half automatically over time until the bit coin emission stops completely when it reaches 21 million bit coins. This conception tends to raise the price of bit coin.
Is it safe to invest in bitcoins?
The proponents of bit coin argue that no organization or individual can control bitcoin and the network remains secure even though it cannot be trusted by all its users. In any case, the security firms warn against the possibility of theft of the code to any user or computer attacks against the exchange offices. Hackers design programs for that theft. rojan, for example, designed to change the addresses of users’ crypto currency portfolios to the clipboard of the infected device. Since the operations performed cannot be canceled and is anonymous, any data theft has no solution.
What does it imply to be a virtual currency?
Bit coin is as virtual as the credit cards and banking networks that people use every day. As virtual as the money that the ECB gives to banks and banks to