And can I cash them whenever I want? Bitcoin has value that can be converted to regular currency or used to make purchases from merchants who accept bitcoins. In this sense, they are real money and will remain so as long as there is a market and people willing to buy bitcoins. To "cash" bitcoins, you need someone to sell them, exchanging for dollars or other currency. The exchange markets which process these transactions often have failures that prevent some people from accessing the account or making transactions for some time, especially during periods of significant changes in the value of bitcoins. So do not think that you can sell bitcoin at any time when you want.

Bitcoin works on something called "blockchain". This software system is often described as an immutable digital Ledger. It is on thousands of computers around the world and is supported by both ordinary users and more experienced experts known as "miners". Jared Blir from Yahoo Finance fun mining bitcoins, running a program for mining cryptocurrency in the background on his laptop. And here's how many bitcoins he managed to generate today: 0.000000071589. At its current rate, it would take 1200 years to mine one whole bitcoin. This will give you an understanding of the complexity of bitcoin mining and how much computing power the process requires: these computerized "rigs" emit as much power that can heat your home.
All transactions using bitcoins are constantly registered by miners who upload transaction packets, or "blocks", into a chain supported on all computers. Blockchain as a technology has become popular among banks and other large financial institutions that want to use it to process payments in their own backend systems. But they are mainly interested in blockchain (without bitcoin).

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.

As a rule, citizens of Eastern countries and Europeans are interested in purchasing e-currency. For example, in Germany, you can legally buy real estate, paying the seller bitcoins. In Japan, you can have a good dinner in a restaurant, paying the bill with cryptocurrency. This is very convenient, because you do not need to have a lot of time and lose huge interest for the transaction. However, not everyone is in a hurry to spend their savings in this way, which are stored in the form of a digital currency. Most owners of bitcoins who buy coins from miners, deep down hope that the rate will rise unexpectedly and there will be an opportunity to sell crypto currency profitably. This is one way how to earn with bitcoins. Thus, many of those who bought the digital currency as soon as it began to gain popularity, were able to make a fortune.

Hundreds of factors are involved in the formation of the price of any Fiat currency: it is the country's GDP, and its place on the political map, and holding imports depending on it. But in the calculation, on which the bitcoin rate depends, these introductory do not participate: ordinary miners issue crypto currency, and their personal savings can not be considered as a security of a digital asset. .

Cryptocurrencies are now experiencing not the best of times. The fall of the exchange rate and interest in digital currencies, the lack of a regulator, laws, the presence of prohibitions and other nuances, all this significantly complicates the spread of cryptocurrency. In many countries, this type of currency is not legal and can even be punished. However, the bans on the spread of cryptocurrencies are not accidental. The fact is that a lot of cases of fraud are associated with cryptocurrencies.

 the pseudonym of the person or group of people who developed the bitcoin cryptocurrency Protocol and created the first version of the software in which the Protocol was implemented. Several attempts have been made to reveal the real person or group behind this name, but none of them have been successful.

Influential players of the crypto world have repeatedly stated that cryptocurrencies such as bitcoin and ether have created an alternative financial system insufficient to justify a market capitalization of $ 500 billion.
Antonopoulos believes that cryptocurrencies can change the financial system, and the growth of the crypto industry and its success can not be determined by the price, as the market develops according to its own laws. The adoption of technology is crucial.

What caused the rapid fall? The stability of the cryptocurrency is due to the fact that it is in high demand and supply in the financial market. Recently, users began to mine exclusively in order to sell. On all exchanges, without exception, there is such a picture: the number of offers for sale exceeds the number of buyers.

The problem of bitcoin scalability is related to the initial limitation by developers of the size of one megabyte of the basic structure for data storage (block) in its blockchain

about the essence of money - this is the most convenient method of payment. It is not necessary to carry with itself: the Potter - amphorae, the Fisher - seafood, and the seamstress - shirts to exchange among themselves for the necessary goods, or just to buy bread.

Bitcoin will become stable probably in 20 years and then it can become a currency, for it will buy things or sell anything.It seems to me that if bitcoin becomes stable, then maybe in some countries it will be introduced as a national currency and it will be in an international Bank.

Looking at the current world of technology are moving in the eyes and the world is not worth it.People earn through the Internet and also buy in it. Bitcoins grow and fall before our eyes like other currencies.But life is getting better and better.