Bitcoin (BTC) - A Report Brought to You by Q8 Trade
What is Bitcoin?
Bitcoin is a cryptocurrency and a global payment system 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 that is traded only online without the presence of a physicist.
Bitcoin is the first decentralized peer-to-peer payment network, fully managed by its users without any central authority or intermediaries.It offers a new payment system and fully electronic money that is circulated over the Internet only, and there are no commissions on transactions. Exchange or trading is done through cryptocurrency, and it is the most prominent thing that makes people accept to own Bitcoin and other cryptocurrencies is the decentralized system that depends on it, as well as the possibility of transactions without giving information about identity.
The History of Bitcoin
One person who gave his name as Satoshi Nakamoto put the idea of Bitcoin for the first time in a research paper in 2008. Bitcoin organizers say that the currency, first floated since 2009, is meant to change the world economy in the same way that it has changed. Web publishing methods, and during 2016 Australian businessman Craig Wright announced that he is Satoshi Nakamoto and has provided technical proof of this but his evidence was easily revealed.
How does Bitcoin work?
To use Bitcoin you must download a wallet on your computer or mobile phone. After the download process, the wallet will generate your own address.You can get other addresses and have multiple addresses at the same time. Transfers are done using addresses, that is, give your friend your address to transfer to you or vice versa, ie as the way e-mail works but for cash transactions.
A common public transaction log on which the Bitcoin network operates. All confirmed transactions are present without exception. Using this record, the new transactions can be confirmed as an exchange of Bitcoins that already exist at the address holder, the trust and chronological order of the totals series are encrypted, and the totals series can simply be described as a book of accounts.
Private keys are used to add electronic signatures to remittances and provide mathematical proof that the transfer comes from the owner’s own address wallet. The digital signature also saves the hawala from being manipulated by someone. All remittances are confirmed by the network in the following minutes, through a method called prospecting.
An exploration network is a system of unanimously distributed “unanimously any component of a computer pool”.
Prospecting enters the order in chronological order in the totals series, ensures that the system is kept completely neutral from any monitor, and allows new computers to enter to work with the system.
In order to confirm the transfer, a number of transfers are collected in a high-level encrypted dataset and the validity of the transfers is confirmed through the network. This prevents any modification in the datasets in the totals series which in turn may cause problems approximately every 10 minutes, A number of remittances are collected in one group and confirmed.
How does the Bitcoin exchange system work?
Bitcoin cryptocurrency exchange is just like regular currency exchange. For example, you buy one currency for another. The relative value of a nation’s currency is a reflection of its economy and financial health.
For example, you can buy lots of Mexican pesos for very few US dollars (the dollar is relatively more valuable). Online exchanges, such as Mt.Gox, act as intermediaries for currency transactions, converting capital from Bitcoin to US Dollars to other national currencies, and again returning them to USD or Bitcoin.
This is the way you can make money and make profits by exploiting the ever-changing values of different currencies and traders can benefit from moving money around these markets, through a process known as arbitrage, yet they can lose it just as easily.
Global recognition of Bitcoin
Germany is the first country in the world to recognize the Bitcoin currency and allow to deal with it, then entered the United States and ranked second in recognition of the virtual currency at the moment, while discussing the future of this currency is currently being discussed in the world circles and through the large offices on Wall Street And the financial district of London, they see it with some caution.
Japan recognizes Bitcoin
The Japanese government has enacted a new law in its plan to structure the financial sector in Japan and its tax system, recognizing Bitcoin as a digital currency that can be treated as a means of payment and payment, as the law stipulates that Bitcoin as a virtual currency can be used in the payment process as its counterparts of traditional currency, which is the same That applies to other cryptocurrencies.
New conditions for dealing with Bitcoin
This recognition of cryptocurrencies by a major country such as Japan is an important event for cryptocurrencies, especially Bitcoin. These currencies have often aroused controversy over dealing or trading, as it is known that these cryptocurrencies differ significantly from other traditional currencies, as these currencies are not issued by the central government, but only recorded transactions through a complex system on Many computers are encrypted.
According to the new law issued by the Japanese authorities, new conditions for dealing or trading Bitcoin, or any new cryptocurrencies, will apply to the identity of dealers and to protect investors from risks, which are very similar to those imposed on brokerage firms. Traditional Forex and stock trading services.
According to the new law, every bitcoin market is supposed to have a reserve liquidity equivalent to a total value of about 10 million yen, equivalent to about $90,000. Every customer must also provide identification documents.
This may affect the popularity of Bitcoin, since Bitcoin’s most important and important advantage is to hide the identity of the user or the trader through cryptocurrency alike.
The Japanese authorities have also set new standards for user protection by improving the security and protection systems used by Bitcoin providers as a currency, as well as disclosing most of the commissions and fees charged for the use of their services. Official information relating to the company such as employees of the company and the efficiency of each of them, as well as information regarding the address of the company and the means of contacting the company, and registration licenses available to them.
How is Bitcoin calculated?
The price of Bitcoin is considered unstable, as the price of a single Bitcoin when it first appeared 6 US cents.During that period until late 2017, the virtual currency gained wide fame and great material value, reaching on December 8, 2017 to the equivalent of about 16 thousand Dollar after rising at a rate of about 60% in about a week.
Bitcoin is also priced compared to the US dollar, if the BTCUSD is worth a thousand dollars, it means that to buy one bitcoin currency, you must pay a thousand dollars.
How to determine the price of Bitcoin
A lot of people are watching the price of Bitcoin, but few know how to set the price. Bitcoin is very different from traditional assets such as stocks and commodities.
What does the value of Bitcoin mean?
In fact, when people talk about the price of bitcoin, they usually mean their value in US dollars in one of the world’s leading stock exchanges (such as Bitfinex or Binance) or its synthetic price resulting from the arithmetic average of quotations on several exchanges.
When they talk about its price on a particular exchange, they mean the price of the last transaction that took place on this exchange. Appropriately, since Bitcoin is a decentralized asset that trades on hundreds of different exchanges, there is no uniform price for it in every trading arena that has its price, although prices are usually very close to each other.
How to set the price for the default Bitcoin currency?
The process of determining the price is that sellers and buyers meet on the cryptocurrency exchange, they find the price in a tried-and-satisfy way, for example, buyers want to buy digital currency Bitcoin as cheap as possible. Both sides must find a compromise that satisfies both.
In order to make the transaction, one party must pay this price, and they call it the recipient because it accepts the proposal made by the other party that made the note with a specific size and price, and this is called the manufacturer.
How do recipients affect the price?
It is assumed, for example, that buyers are sure that the price of Bitcoin within several days will be about $10,000, in this case they will play the role of recipients and are willing to pay to spread by buying all the size of the cryptocurrency proposed at the level of $9400, and if the bitcoin index rose to the level of $10,000, they will get $600 of profit. When buyers buy all the proposed coins for about $9,400, they move to $9,450, then $9,500 and so on.
What factors affect the price of Bitcoin?
Bitcoin cryptocurrencies are fueled by the devaluation of national currencies in many countries, such as those in the European Union, where Bitcoin has become a safe haven for individuals and institutional investors looking for solutions to preserve the value of their property or invest through assets. New and promising.
Another reason why Bitcoin’s rocket appreciation over the past two years can be explained is the large number of citizens in China owning this virtual currency, with the Chinese central bank insisting on devaluing the yuan as much as possible to increase the competitiveness of Chinese exports, with the imposition of Chinese authorities There are some restrictions on citizens in owning foreign assets and taking money out of the country.
Why is Bitcoin trading profitable?
Bitcoin is a double-digit diamond that is very fast. Whoever bought Bitcoin in 2009 since its first issuance, where the Bitcoin unit did not exceed one dollar made very big profits, exceeding $10,000 at the beginning of 2017 making terrible profits especially since the profit did not stand At that point it is even rising.
Harvard University predicts $100,000 in Bitcoin value by 2021. The University has carried out special studies that have yielded that expectation and relied on Moore’s law, which economists rely on to anticipate and understand the future of technology.
The Bitcoin price increase every 8 months is de facto, which is a great opportunity for investors.
Investments in cryptocurrencies
Security risks can be seen as the biggest threat to Bitcoin, such as the security breach suffered by Mt.Gox in 2014, which led to the bankruptcy of the company, which was the first and largest exchange to allow the trading of Bitcoin digital currency, which led The price of Bitcoin has collapsed, and doubts about the viability and reliability of cryptocurrency investments have increased.
Another threat that Bitcoin may face is that currency prices may fluctuate dramatically. Your encryption system makes it difficult or even impossible to track any transaction.
But does this mean that there is no chance of profit from Bitcoin?
Of course not, the volatility in Bitcoin prices increases the chances of profitability of this cryptocurrency, which some describe as vague, as no one can predict its next price action. Therefore, despite some risks, trading in this virtual currency can be very profitable, but in the case of trading wisely and cautiously.
Trading Bitcoin through CFDs
Bitcoin CFDs are the magic that allows you to trade Bitcoin without actually using Bitcoin for the purpose of getting exposure to Bitcoin without actually having it.
Trade Bitcoin with Q8 Trade
You can trade Bitcoin with Q8 Trade through CFDs, which ensures that you can make profits even when prices fall, in addition to trading the asset without owning it.
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There is no fee for trading Bitcoin with Q8 Trade, as you do not actually own the asset.