The Rise in Bitcoin Exchange
The world of technology and internet economies have brought forth another way of money exchange in the world. The Bitcoin was established as a crypto currency is used in aneWallet software that is downloaded onto a web application, mobile device or computer. The Bitcoin exchange is when bitcoins are traded just like money from one hand to another. Here is an excellent guide on the different Bitcoin Exchanges that exist! The bitcoin can be used to buy virtually anything that is wanted. It can be used to buy goods and materialistic thing as well as services. The use of bitcoins enables someone to send money from country to country without having to use a bank or financial institution of any kind. This type of transaction has become very popular. It has attracted technology experts as well as engineering experts and of course the criminal. Criminals look at the use of the bitcoin as an easy way to money and will hack into systems and steal thousands of bitcoins that equal to millions of dollars at the current exchange rate. There is also the way of the criminal selling illegal substances such as drugs, firearms and other weapons using bitcoins. Because it is near impossible to track bitcoins this makes the transaction appealing to a criminal. They will invest more because they can make more and get away with it. Bitcoins are conducted of codes on the computer that travel from one person to the next after they have been signed digitally.
Bitcoins came on the scene back in 2009. It was generated that they were invented by a man named Satoshi Nakamoto. The man who was said to have started the chain was believed to be in Southern California in the United States. He is a 64 year old man who denies being the inventor of the crypto currency. It is hard to say if he is or not but the name matches. The man who invented the bitcoin never revealed himself to anyone. He made millions of dollars then dropped of the face of the earth. It is said that early on in the invention the man posted on forums found throughout the web. His voice was never heard and his face was never seen so nobody really knows the exact identity of the man. When the rise started for bitcoins he thought that it had attracted too much attention and did not want to be a spotlight or in the media. Although the identity of the man is unknown and has been since the beginning the use of bitcoins is on the rise because it governs itself pretty much.
The exchange rate of the Bitcoin fluctuates. It is resembled to stock markets because the prices increase and decrease in stages and throughout time. The bitcoin is still used around the world. More and more companies are starting to take the bitcoin as payment so the use has increased. There are more apps and eWallets that are being created to use the bitcoin as well. The system is pretty much run by highly knowledgeable computer techs called miners. These miners look through to make sure everything is running good. The miners keep the blockchain running correctly and smoothly be researching every transaction that is made with a bitcoin. In doing this they make sure that fraud is not happening by using the same bitcoin for payment twice. The miners are paid in bitcoins here and there from companies who use their services. Because of this fraud almost never happens during transactions. Fraud does occur however. Fraud happens within an app that is used for the bitcoin collection called aneWallet. If the app does not have adequate and secure security it is easy for hackers to steal bitcoin from their eWallet. The use of bad security at a website where a person is exchanging bitcoin for cash like the euro dollar or USD then this also gives hackers another window to crawl into and steal the bitcoins inside.
Since the year 2009 when the betcoin was established it has crashed a total of 5 times. The first time the bitcoin crashed was from June 8th to June 12th 2011. The peak price per bitcoin at the beginning was $32 USD. It soon declined to $2 that November. The decrease averaged an estimate of 94% in total. The rise in pricing began again but was not fully restored until 2013. The next time it plunged was on January 17, 2012. At this time the price per bitcoin was still only $7.50. The increase since the last November still wasn’t showing much of a difference. On January 16th it decreased down to $4.60 and rose to $6.25 a couple of days later. This was an increase but not much in total. In August of 2012 the bitcoin had risen to $15.25 and was steady for a while. The in the middle of the month it dropped yet again to $10.50 and then in two days’ time plunged even farther at $7.50 totaling a decrease of 51 percent. The rate did not rise again to over $15 till 2013. The year 2013 showed a new wave for bitcoin users. The rate rose to $49 but then decreased by 33 percent to $34 on March 6th. It then rose back again to $45 shortly after. As of April 10, 2013 prices were at $266 and steadily rising. These days, the prices have skyrockets to over $600 per coin. It is somewhat difficult to buy bitcoin nowadays due to many different exchanges and services. But follow that link and it provides an excellent guide on the best and safest places you can buy, sell and trade bitcoins.
The rise in the bitcoin exchange has been the focus of many hackers today. These people are professionals who are stealing thousands of dollars from people around the world. Large companies are falling which is causing not only them but the people who invested in them to lose money. The largest dark period was the crash of the temporary reign of Mt Gox. Mt Gox was based in Tokyo, Japan and was a leading factor in the bitcoin exchange. In the month of February in 2014 all trading was stopped completely by the company freezing everything in place. They then closed down the website they used for bitcoin exchange and filed for a civil rehabilitation bankruptcy. The company had been handling about 70% of all bitcoin trading since it was established in 2010. The company stated that about $450 million dollars averaging around 850,000 bitcoin disappeared from the company and was more than likely possibly stolen. Many of the decreases in the value of the bitcoin were in relation to Mt Gox being the reigning king of the bitcoin exchange world. This was in part due to security breaches and well as new laws pertaining to the bitcoin exchange.
There are many people who have lost money especially with the shutdown of Mt Gox and some people don’t’ understand it. One person who has made millions on the bitcoin exchange stated that Mt Gox had been limiting withdraws for months and he didn’t realize why people would put money into a company that took months to send the person their money. It doesn’t seem realistic or smart. There are ways that bitcoins can be sold and illegal operations conducted as well as counterfeiting real money. Many companies in the bitcoin exchange business have what is called a blockchain. The blockchain is where the bitcoins are held. In the business government officials have no way of tracking the use of the bitcoin because of these type of companies.
What happens in these companies is they have a large number of bitcoins. These bitcoins form a block chain. The block chain is revolving which means that a person who joins will put all of their bitcon into this pot and then the pot will give them new bitcoins to use. These bitcoins are set up so that they cannot be tracked ot the person who bought them because they are constantly switching hands. Although these companies are very sketchy they are not illegal as of yet. There are no regulations or control in the use of bitcoins and bitcoin exchange.
Although the exchange of bitcoins is not illegal the use of bitcoins in illegal transactions is. In the history of the bitcoin the only major story of this type of conduct is last year when the FBI shut down the company Silk Road. Silk Road was caught by the government for using the use of bitcoins to sell illegal substances such as drugs and firearms. The company used the bitcoins for selling because it is almost impossible for the governments of the world to track them. This is partly due to the use of block chains in big companies.
Many people have looked at the use of bitcoins as an easy way to make money and it appeals to them because of the ease. However, with the lack of government authority it is uncontrollable and can be risky in the end to deal with the bitcoin at all. The rise in hackers and companies going bankrupt have made a lot of people think twice about the bitcoin business.
Some fear that the use of bitcons is slowly fading and will become a trend that occurred and stopped. Other people believe that it is increasing and will become the new wave of payment in the future. Either way bitcoins have made a lasting impact on the world today.
The current exchange rate for a bitcoin is $581.99 American dollars for 1 bitcoin. This number fluctuates however. People look at it as the currency exchange that is used among stock brokers in the world. The bitcoin is just another form of money. So instead of exchanging Australian dollars to the Danish krone then you are exchanging the Australian dollar for the bitcoin. In history the lowest the bitcoin exchange rate has ever been is $2 American dollars per bitcoin. The number has increased to amount to around $1450 American dollars for each bitcoin.
The bitcoin is a form of money so it has raised a lot of commotion and violence in acquiring them. There have been attacks as well as deaths involved on the acquisition of bitcoin. The process of keeping track of bitcoin transactions is handled by a miner. Miners are people who are tech smart that go through every transaction to make sure that bitcoins are not used twice. The transactions are governed by what is called a block chain. A block chain pretty much is what the name says a block of chains. Miners go through the block chain to sort out the real transactions with the fake ones. It is a very hard process to do and can only be done be very intelligent select few. A proof of work must be established with every block within the chain. IF it does not then it is considered as being invalid. The function that is used is called the hashcash and is verified by the bitcoin nodes. Miners are also the ones who can create new coins. This profession pays very well with a subsidy and transaction fees. There are different types of equipment that is used in order to be a miner. The type of equipment that is used is determined on the circuit that the work is being performed on. These include the CPU, GPU, FPGA and ASIC. CPU mining is pretty much disabled. It is not used much anymore because of the slow rate it produces. GPU and FPGA are more faster equipment for mining. The most used and popular of them all is the GPU. It is pretty much the fastest equipment and is quite efficient as well. With ASIC a miner uses a microchip that is constructed. The first one to be made and used was in 2013. This microchip has extreme speed and the best technology to use. It has made companies and investors aware of the problems with CPU mining in many countries and their setups.
Bitcoins have come a long way since the creation. The exchange for the bitcoin has been an up and down battle and can be compared to the stock market trade due to many of the similarities they both share.
By Steve Lee
Bitcoins is a type of digital currency that was first introduced in October of 2008.The pseudonym of the person behind the Bitcoins is Satoshi Nakamoto who has dissociated himself from any of the developments related to the currency starting 2010. Thus, up until today, no one really knows who he is. The currency just came into existence when a Genesis…