What are the mechanism and features unique to Bitcoin (Bitcoin / BTC)?

What are the mechanism and features unique to Bitcoin (Bitcoin / BTC)?

Bitcoin (BTC), the world first traded virtual currency, has the advantage of being the most circulated. We will explain the features of the unique features unique to Bitcoin (BTC), such as the absence of a management organization and the upper limit on the number of issued coins to beginners. 

There is no central bank

Bitcoin (BTC), like Japanese yen and US dollars, is not issued by the state or central bank as a currency and does not guarantee its value. There is a core group of developers and co-workers. Still, central banks that adjust market volumes or intervene in transactions based on market trends, such as the Bank of Japan in Japan and the Fed There is no governing body equivalent to the Preparatory Board).

A currency that is far from national authority and that does not receive centralized control is the aim of Bitcoin (BTC), a major feature common to subsequent virtual currencies.

Transaction ledger distributed and stored on the Internet

The absence of a central bank means that transaction information is not centralized in one place. In a bank, currency and transaction information are managed in a central vault or a tightly controlled main server. However, Bitcoin (BTC) is building a P2P network in which terminals that download programs and participate in transactions are individually and interconnected.

Bitcoin (BTC) transaction information is recorded and shared by a huge number of terminals such as PCs, smartphones, and tablets scattered around the world, ensuring the integrity of the information and ensuring security. The value of Bitcoin (BTC) is maintained, not by the authority of the state. But it is maintained by the trust of users around the world who trade according to set rules.

There is an upper limit on the number of issues

Bitcoin (BTC) had been issued at the time of its birth at 21 million. That is a Bitcoin (BTC) specification and is built into the program and will not be issued any further. Currently, most crypto currencies being issued have a final issue cap. However, the quantities vary, and the basis for the numbers is also different.

In the case of Bitcoin (BTC), since there is no central organization to manage, if it is issued instinctively, Bitcoin (BTC) will eventually enter the market and reduce its value. Due to such concerns, the upper limit of the number of issued cards is determined in advance.

Send money worldwide in real-time

We have already explained the time lag when remittance of Bitcoin (BTC). Considering only this point, bitcoin (BTC) is not yet enough as a payment method to pay for goods and services. On the other hand, this is due to the quality of payment services, not the issue of Bitcoin (BTC) itself.

Bitcoin (BTC) is far superior to traditional bank remittance procedures. The overseas remittance, which used to take days, can be completed in just a few tens of minutes. This speed is exactly the advantage of virtual currency.

Bitcoin (Bitcoin / BTC) present and prospects

Bitcoin (BTC) was born from a completely different idea from real currency. Several other virtual currencies other than Bitcoin (BTC), “Altcoin”, have also been born, and Bitcoin (BTC) has maintained a high popularity and market capitalization as a representative of virtual currencies. However, as Bitcoin (BTC) became more widespread, legislation in each country was considered, and movements to regulate cryptocurrencies began to appear.

In Japan, the Funds Settlement Act was revised in 2016, assuming cryptocurrencies, and was enacted the following April 2017. It recognizes Bitcoin (BTC) and other virtual currencies as a means of settlement and places various restrictions on exchanges to protect users during transactions.

Despite the regulation, its content is based on lessons learned from the past Mount Gox incident, and it is important to prepare reserves according to the amount of cryptocurrency handled and to keep customer information and funds in a safe place. It is content that requires isolation.

While recognizing cryptocurrencies as a completely new form of currency, they are demanding that exchanges provide a mechanism to protect many users, which is essential for their development. For more information, you can browse at https://thelibrasoftware.com/