What is the Bitcoin electronic currency?

The name of Bitcoin electronic currency has gone through a lot of readers, especially those who follow the technical news from them, but without a full briefing about what the composition or how it is used and how it works.

In a simplified way, a composition is an electronic currency that can be compared to other currencies such as the dollar or the euro, but with several fundamental differences, most notably that this currency is a fully electronic currency trading online only without a physical presence.

Unlike conventional currencies, there is no central regulatory body behind them, but can be used as any other currency to buy online or even convert them into traditional currencies.

The purpose of this currency, which was put forward for the first time in 2009, is to change the global economy in the same way that the Web has changed its publishing methods. Who founded this currency and how it works?

Decentralized currency

A person who called himself the symbolic name of Satoshi Nakamato put up the idea for the first time in a research paper, describing it as an electronic cash system that relies on the principle of peer to peer, a technical term that means direct interaction between one user and another without a broker.

It is described as an anonymous digital currency, meaning that it does not have a serial number or any other means of any kind that allows tracking what has been spent to reach the seller or buyer, making it a popular idea for both privacy advocates or vendors of illegal goods Such as drugs) online alike.

You create financial transactions between two people directly without the existence of an intermediary to regulate these transactions, where money goes from one user account to another immediately and without any transfer fees and without passing through any banks or intermediaries of any kind.

Homeowner spending

Although there is a relatively limited range of sites that accept payments for their products compared to traditional currency sites, the configuration is supported by a growing range of sites, including large and diverse sites and sites such as hosting sites, domain name registration, social networks, video and music sites And various websites that sell various kinds of products.

In addition to purchasing products, the user can switch pieces by creating his cash in other real currencies. This process of switching takes place between the users themselves who wish to sell money by forming and buying real currencies against them or vice versa.

As a result, it has its own exchange rate, and the price is rising, reaching $ 120 today, from just a few dollars a couple of years ago.

International recognition

Germany is the only country to officially recognize a currency as a form of electronic money. The German government has therefore ruled that it can tax the profits earned by companies that deal with Btkwin, while individual financial transactions remain tax-free.

A federal judge in the United States recently ruled that composition is a currency and a type of currency, and could be subject to government regulation, but the United States has not officially recognized the currency yet.

Some believe that official recognition has a positive side, that is to give the currency more legitimacy, while others believe that this may open the door to further regulation of the currency and linking it with governments, which is contrary to one of the features of the composition as a currency not subject to any party