FREQUENTLY ASKED QUESTION

Many of our contemporaries, accustomed to paper banknotes, find it difficult to imagine that units of account may be deprived of physical embodiment.

How can you explain the rise in popularity of digital currency? There are a number of reasons for this.

Our contemporaries do not lack technical innovations and they have a lot to choose from. Progress has affected all spheres of life of modern mankind. Innovations have also invaded such a conservative, seemingly at first glance, direction, which is considered to be financial settlements.

What have we become, modern representatives of the human race? Of course, dependent on information and computing technology and technology, and the World Wide Web.

An amazing ecosystem of alternative monetary units was born recently, only in 2009, and it was all started by the brilliant programmer Satoshi Nakamoto, who created the first cryptocurrency Bitcoin.

People who have never dealt with the topic of cryptocurrencies often ask questions about the reasons for the high cost of Bitcoin. No one can understand why mysterious digital coins that cannot even be touched often rise in value. After all, we are dealing only with computer arithmetic code that someone invented.

In the first part of the story, we talked about how the value of fiat money and bitcoins is formed, but why do financiers value cryptocurrency so highly? First of all, because earlier we perceived money as a means of payment, and payment systems as their instrument of transfer. Due to the fact that in the past, when conducting transactions, there were a number of different restrictions, we could not even imagine that in the future there will be special networks in which it will be possible to transfer real money equivalents.

Since the appearance of the first digital currency, many users of the virtual world have begun to study this financial phenomenon, which has no analogues. However, some of them do not fully understand the principle of the Bitcoin network, although there are no fewer interested in this issue. On the Internet, you can find a huge number of thematic articles written in different languages, while the technical and scientific terms used in them are extremely incomprehensible. In this material, we will outline the features of the network functioning in a more accessible language. To learn how Bitcoin works, you need to familiarize yourself with the history of its creation and its features and benefits.