Money ruled the world. It can be defined as the official issue of legal tender consisting of banknotes and coins, approved by one government as the main medium of exchange. Countries all over the world have their own currency flows to facilitate the exchange of goods and services.
In general, economists classify currencies into three categories:
commodity currency (a form of a commodity, such as an intrinsic value considered as a currency other than a currency), a representative currency (representing a currency but not the currency itself The historic use of tobacco or salt) and the legal tender (absolutely no intrinsic value but the currency of government’s authority) the rapid growth of the information society and the innovations that new digital technologies are driving in all aspects of human endeavor have been born New currency in virtual or internet currency.
What is a virtual currency?
According to the European Central Bank, the virtual currency is “an unregulated digital currency that is usually controlled by its developers and used and accepted by members of a particular virtual community.”
Compared with the common currency, the virtual currency relies more on the trust system than the central bank or other financial regulators. Therefore, virtual currency is often an unregulated, uncontrolled digital cryptocurrency, a key feature of portability, endurance, and uniqueness.
It is important that there be a distinction between virtual currency and digital currency. Digital money refers to physical notes and coins in circulation that are converted into digital form but still associated with our financial system, which begins as a currency for online exchange.
Recently, however, virtual currency has also been used in the physical world to pay in stores, blurring the real boundaries between virtual currency and digital currency.
Virtual currencies do have some unique characteristics, such as Cryptocurrencies (based on cryptography), founders, highly dependent algorithms, and a high level of anonymity. In general, this is a recent phenomenon, with relatively low transaction costs overall.
What is Bitcoin?
Bitcoin is one of the most famous and popular types of virtual currency. It was founded in 2009 and is a decentralized virtual currency. Without central authorities or banks, the management of bitcoin issuance and transactions is centralized by the network.
A peer-to-peer (P2P) model implies a decentralized communication model in contrast to the same level of communication sessions having the same level of originating communication sessions where only one (client) server initiates a service request and then the server completes the request.
Therefore, in the P2P network model, each node can be used as both a client and a server. The bitcoin official website at https://bitcoin.org/en/ describes it as “Bitcoin is open source; it’s designed to be public, and no one owns or controls bitcoin and everyone can participate. Unique features that Bitcoin allows for exciting uses not covered by previous payment systems. “
According to www.coinmarketcap.com, Bitcoin holds about 650% of the virtual currency, accounting for 90% of the market (about 5.3 billion U.S. dollars, or about 4.8 billion U.S. dollars).
Other names on the market include, but are not limited to, mastercoin, digital currency, novacoin, zetacoin, feathercoin and zetacoin. It is worth noting that the cryptocurrency space continues to emerge, with some currencies folded and new currencies available each day.
How does it work?
Bitcoin runs on a peer-to-peer network, making it a truly decentralized monetary system. Money is not itself issued; instead its value is mined (extracted) by using sophisticated computers to solve very difficult mathematical-based equations. The core technologies at the core of bitcoin and other virtual currencies are “blockchain” and “mining.”
The unique secret key that is then sent from one address to another via Bitcoin’s core protocol, commonly referred to as (blockchain), monitors each bitcoin transaction as a decentralized financial public registry.
In order to complete the deal, miners confirm the true identity of the person who initiated the transaction to make sure they are the true owners of the funds. Through this mechanism, funds can be transferred around the world without the need for a traditional banking system.
In addition, blockchain technology provides for compliance with a range of laws and regulations, including anti-money laundering and T + 2 settlements. As of this writing, GH ¢ 100,000 equals 18.37155 bitcoin, and for the first time this year (2017) bitcoin va