Bitcoin: Past, Present and Future

In history, all paradigm changes have changed the structure, the foundations of what has been giving or doing so far. It was the incorporation of electrical energy, chain production in the productive process, the internet, 24hs connectivity or many other daily advances that changed the way to move, produce, speak, connect and even invest between people, machines and devices. Blockchain is that. A paradigm shift and doing things.

Blockchain means block chain, the network technology on which Bitcoin was mounted which was the first decentralized currency not issued by a central bank, as well as the other cryptocurrencies that followed it, which today are over 3,000 that operate at least in daily form.

Blockchain is a disruptive technology that radically changes the way to do things in the future. Allows digital data transfer with a very complex encoding, but in a completely safe way. This new system modifies how to understand business, economics and society.

When Blockchain is used, all data is encrypted, so transactions are written so that only the originator and recipient can access the content. With this technology, agreements and transactions can be made in a confident way without revealing confidential information between the two parties and without the need for intermediaries: the perfect world and a temptation to black money that is very fought by regulators, who force banks to be sympathetic and responsible in this task, because they look at this technology closely wanting to embrace this new paradigm with own developments or destroy it because it is direct competition (derive funds from traditional accounts to other destinations).

So far, financial intermediaries such as banks, credit cards or PayPal, among others, have been essential, especially when dealing and transferring money, something very delicate and in which safety is required, however high the cost. Intermediates make sure we're who we are. But all this is changing: Blockchain transforms the value internet (which includes titles, certifications, records) and passes to digital and decentralized format, without the need for an intermediary to perform an operation or a record, since it is based on a troncal network in which you are confident, because if everyone has or operates with the same information, then this information is reliable.

Bitcoin, is this new virtual currency that has produced a revolution in the world of electronic payments through an innovative network of payments and a new class of money that has been the impulse of many other ventures who wanted to imitate the success that had at its beginning this market.

People who buy and pay with bitcoins do so on a public network where all of us keep a copy of each transaction. Blockchain represents the end of data centering, as if it were the book of accounting seats of a company where vuelcan and record all the inputs and exits of money.

Bitcoin was born in 2009, and the creator remained in anonymity; it simply came out with his invention to the world, which currently generates a mystic around it. In September 2012, the Bitcoin Foundation was created to promote, standardize and protect it.

Bitcoin allows users to exchange online credits for goods and services. Use peer-to-peer technology, that is, between pairs, to operate without a central authority or banks. It is an independent virtual currency of any State and is not linked to the issue of a particular central bank. Transaction management and bitcoin emission are not carried out by a monetary authority, but through the network. These transactions are irreversible. Although bitcoins are transferred in seconds, they are required between 10 and 60 minutes to verify. Transfers can be received at any time, even if the computer is off.

As Bitcoin uses an open source, its design is public, no one owns or controls it. Anyone can participate and pay or receive bitcoins. Is it regulated? No, and that was the strong rise in its price, because the gains can be fired and are exempt from controls. Who do you perform transactions with? It is not known unless it is identified specifically. This deregulation and depersonalization of Bitcoin led other entrepreneurs to create other similar currencies, some of them with some success.

Bitcoins are obtained in many ways:

1. You can buy: there are specific websites for currency exchange with Bitcoin.
2. You can accept as currency of change when selling goods: there are auction sites where you sell items with Bitcoin.
3. They may also have bet, for example: there are several gambling sites that accept Bitcoins as gambling payment.
4. It is worth clarifying that the most genuine way to issue Bitcoins is performed online (on some specialized internet sites) by performing certain tasks through a computer, process known as mining or mined. The quantities issued are controlled by computer programmers working through algorithms. Mining data means automatically generating under a transaction process without controls with complex mathematical algorithms to prevent any emitting an indefinite amount

The miners

The only ones that can make changes are the “mineros”, who register and diffuse them in the network so that we verify their validity and update the state of the chain: they are the ones that keep the “health” of the network. They spend silver on processors, a lot of electrical energy, time, money and other resources in searching for the codes. What incentive do miners have to keep that database? For each transaction they receive commissions. Each time a miner (or several in a “pool”) writes a block, new Bitcoins are delivered: they now receive 6.25 bitcoins, a number will decrease with time, and will end up being zero when reaching the number of 21 million bitcoins in the year 2140 (from the current 17 million). There are currently 144 new blocks of Bitcoin per day: as there are 6,25 bitcoins per block, it means that 900 bitcoins are added to the total bitcoins in circulation daily.

The system publishes a mathematical operation every 10 minutes, as a sort of problem to solve based on tests and error. Although all miners try to solve it at the same time, chance makes there one that guesses the result that is what will have the right to write the code on the network.

Bitcoin and the phenomenon of the rest of the cryptocurrencies is one of the rising markets of recent times, which rivals all other financial assets. It is almost logical and compelled to compare the trajectory of its price with the other price bubbles such as the real estate in the US, technological actions, and why not, go back to the Tulipane Burbuja a few centuries ago. Time will tell if it was a bubble, but I don't think they are strictly comparable because Blockchain clearly represents a paradigm shift. It is not just revolutionizing financial transactions, but also public administration, as central banks conceive of money or the Internet of things (IOT).

The fact that it is global and decentralized in thousands of us from a network where you can write without a central node that organizes them makes technology a community, a system-style ecosystem Apple or Google with multiple interwoven applications. So are the disruptive systems on which users base their preferences and solve their problems, which gives you a unique value that we all try to guess by putting a price and adelantindo us to the facts, which in this case will revolutionize the way to do things.

In summary, Bitcoin is the world's first decentralized digital currency. This digital currency can be sent and received over the Internet, is a currency, such as the euro or the US dollar, and aims to exchange goods and services. However, unlike other currencies, Bitcoin is an electronic currency that features new features, highlighting its efficiency, security and ease of operating.