Learn about Bitcoin
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Bitcoin: what it is, how it works and how much BTC is worth
Before starting, it is necessary to clarify that the concept of Bitcoin has two main meanings: bitcoin (BTC) as a monetary unit used to exchange goods and services and Bitcoin as a protocol network. That small but important difference will help us understand how it works and why it has value.
How much is a bitcoin worth?
It is difficult to put in writing how much is since its price changes almost constantly. This variation in its price is due to the fact that it depends on the supply and demand of the market: when the demand increases, its price also increases and vice versa.
How much is a bitcoin worth in us dollar ?
It is possible to convert BTC to us dollar as it happens with almost any currency in the world.
Price in dollars
The US dollar is the reference currency worldwide, so it is also used to reflect the value of BTC.
What is bitcoin (BTC)?
We know as BTC the token of the Bitcoin network. It is the first decentralized monetary unit, that is, there is no central entity that controls it, but rather those who produce it are people and companies around the world. It has a characteristic that distinguishes it: its issue is limited by design to 21,000,000 units. Each BTC can be divided into one hundred million units called 'satoshi' in honor of its creator.
It is a currency that does not belong to any State or country, it can be used throughout the world and acquired through local currencies. Transactions on the network are completely anonymous, it is not necessary to reveal personal information to make exchanges and, as it is not a centralized network, the money belongs to you 100% since it cannot be intervened by anyone.
Who is the creator of Bitcoin?
In 2008, an anonymous software developer (or group of developers) under the pseudonym Satoshi Nakamoto proposed Bitcoin as a means of electronic payment based on mathematical proofs. His idea was to produce a medium of exchange that is independent of any central authority, that can be transferred electronically in a secure, verifiable and immutable way. After its first version of the software was released in 2009, Bitcoin went on to become a global phenomenon.
The most curious? To this day, it is not known who is behind Satoshi Nakamoto, that is, it is not known for sure who created bitcoin.
What is BTC used for?
One of the most frequently asked questions when starting to invest in Bitcoin is what can we do with them. Next, we leave some of the uses that we can give it and what can be bought with bitcoin:
- Send and receive payments: without time limits or borders.
- Carry out transactions for goods and services: Many large companies began to accept BTC as a form of payment.
- It works as a store of value: although its price fluctuates, it tends to increase over time thanks to its scarcity.
Main characteristics of this cryptocurrency
As we mentioned before, this cryptocurrency has certain characteristics that make it unique and position it at the top of the market. These characteristics are decentralization, transparency, and value determined by demand. Let's see what each of them is about.
It is the most important feature of Bitcoin. In the network there is no central entity, unlike traditional currencies, but the users of the network are the ones in charge of producing new currencies and ensuring the proper functioning of the network. This feature allows each user to have full access to their money, without their account being frozen or seized, allowing transactions to be carried out at any time and from anywhere in the world.
Although it is not necessary to provide any type of personal information to be able to transact in the network, these transactions are visible in the blockchain for anyone who wishes to observe them, which is why we say that the network is transparent. Again, we will only see transactions and input and output addresses, we will never see personal data of the people or companies that send and receive them.
Value determined by demand
Nobody determines or fixes the value of a BTC, but it is given by the supply and demand of the market. If the demand increases, the value will increase accordingly, and if the demand decreases, the value will tend to decrease as well. Also, it is worth emphasizing that this is a consequence of its limited issuance: a scarce commodity tends to increase in value, so if more people want to obtain a BTC, its value will increase because not everyone will be able to do so.
How do bitcoins work?
Comparing with the traditional system, we can say that the network works in a similar way to any bank account: users store BTC in a wallet or digital wallet and have full control over their holdings to send or receive from other addresses. Similarly, this address will serve to receive BTC and not another type of currency, both digital and physical.
The Bitcoin network is about computers (known as nodes) interconnected with each other and with an Internet connection that fulfill various functions, including confirming the transactions that take place on the network.
How are bitcoins produced?
Those in charge of producing new BTC, among other functions, are the so-called miners. To do this, miners connect specialized equipment to the network in order to solve mathematical calculations, and whoever manages to do so will receive new BTC as a reward. The network code stipulates that a new BTC must be created every 10 minutes, no more and no less time.
If you are wondering how to generate bitcoins, then we have good news: anyone in the world can become a network miner, you only need specialized hardware and software to connect to the network.
How to make money with Bitcoin?
Many people see Bitcoin as a great opportunity to generate profits in the medium and long term, while others see it as a way to protect their savings. The reality is that, whatever the goal, this cryptocurrency allows each person to adapt it to their needs. Let's go over some of the most common methods.
In the jargon of cryptocurrencies, the expression 'hold' is used to refer to the action of acquiring BTC and saving it in a wallet so that, over time, it is revalued. This is a very popular action within the Bitcoin world. Logically, the idea is not to divest, not to sell the holdings until they reach the desired value.
One of the options to generate profits is to obtain BTC directly. For this, it is necessary to become a miner, actively participate in the network in order to get a reward for this work. To do so, it is necessary to acquire specialized hardware to mine, obtain software to connect to the blockchain, connect the equipment to the electrical current and have a stable connection to the internet. In this way, we will get BTC without the need to acquire it directly. It is worth mentioning that while the rewards for solving blocks are high, so are the costs of the necessary equipment.
When we say “trading” we are referring to the action of speculating on the rise or fall of the prices of cryptocurrencies to make decisions based on it and be able to make a profit. Typically, these desired gains have more to do with the short term.
Advantages and disadvantages of Bitcoin
This new way of transmitting value has many benefits for users. It is a very disruptive technology that will surely imply a change in the financial system as we know it now. Although its advantages are far greater than its disadvantages, it is not bad to review both.
Advantages of Bitcoin
- Transparency and neutrality:transactions are visible to anyone who wants them. Also, no one is above anyone else.
- It is international:it does not depend on any government or state, so we can use it anywhere in the world.
- Freedom to send and receive payments:we can do it at any time of the day and without geographical limits.
- Less risk in payments:transactions are secure, irreversible and do not contain personal data.
- Security and control:users have full control over their operations, so it is impossible for someone to force unwanted charges.
- It is scarce:Its emission is limited. When a good is scarce, its value tends to increase.
Disadvantages of Bitcoin
- Volatility:The price is constantly changing and sometimes the ups and downs can be sharp.
- Not accepted in all stores:While adoption is growing by leaps and bounds, the market is not yet large enough to be universally accepted.
- Losing your password is not an option:Losing access to your wallet means losing all your holdings.
- The Internet connection is a necessity:although the Internet is present throughout the world, we may come across this impediment to transact.
Historical price of bitcoin: BTC price statistics
Bitcoin is only a little over a decade old, but even so, its price has undergone many changes. From the launch of the network in 2009 until today, the evolution of the price of Bitcoin has been simply spectacular, going from being worth literally nothing to reaching $69,000 per unit. This tremendous evolution allows us to make a more than positive projection in terms of its value in the future.
As we mentioned before, the projection on the value of BTC is more than positive and allows us to dream big. Beyond its monetary value, those of us in this world know that blockchain technology is so disruptive and has so many benefits that we know that sooner or later it will begin to be adopted in various fields, not only in the economic one.
Bitcoin Argentina - Frequently asked questions
How can I get bitcoins?
We can mine or purchase them on platforms like Satoshi Tango, where you can do so using your local currency.
How much is the minimum to invest in bitcoin?
At Satoshi Tango you can invest in Bitcoin from $10 us dollar .
How to start trading bitcoins?
Trading on Satoshi Tango is easy, fast and secure. Download our app, register, load funds into your account and start trading with Bitcoin.
What is the safest platform to buy bitcoin?
At Satoshi Tango we provide access with biometric data, second authentication factor and password analysis so that investing in crypto is even safer.
What is the Bitcoin white paper?
A white paper is a document written by the creator of a project detailing all the relevant information about it. Thanks to these documents, we can inform ourselves to decide whether or not to invest in a project.
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