bitcoin and cryptocurrencies are all the rage. We show you what this digital and virtual currency is, how it works and how to start investing in bitcoin in Spain in 2021. Virtual currencies emerge as an option to the usual fiat currencies and have their highest exponent in bitcoin. Cryptocurrency became one of the best investments in the long run (full of dangers, yes). Someone who had invested 1,000 euros in 2010 today would be a millionaire. If you want to know more, here we tell you all about bitcoin. In BitcoinNews we have also developed a part where you will have the possibility to see information from different interfaces where you can get bitcoins or cryptocurrencies, compare and then choose which is the one that best suits you. Here you can see different interfaces where you can buy bitcoins.
What is bitcoin? Is a virtual currency without dependency and intangible. What distinguishes this cryptocurrency from a currency to use as they have the possibility of being USD or euros is that it is not part of any State. In other expressions, what are bitcoins and how do they work? They are fundamentally decentralized currencies, since there is no central bank, government or financial institution or company acting on it. Bitcoinnews-
In the situation of the euro, the Central Bank can intervene to damage the value through massive money issues or through interest rates. This is impossible with bitcoin. What’s more, its developers have already set a limit on the number of bitcoins in circulation. They will reach 21 million in 2030 and for the moment there will be no more. Control of bitcoin rests with the individuals themselves. They are the ones who validate an operation through exchanges (Point to Point P2P), without the participation of the state or any institution. In fact, our composition makes it impossible to manage its value. To make a change, it is a requirement that the entire social network of individuals approve it.
that it could be implanted with some solvency, but not the first to show itself. What distinguishes bitcoin from other attempts is its blockchain technology – later we will show you better what it consists of.
You can receive bitcoin and cryptocurrencies sent to you by another Revolut user. However, you will not be able to receive cryptocurrencies that are sent from outside the Revolut interface (for example, from an external wallet). We are currently doing some work to suggest this occupation to you later. Right now, you will have the possibility to acquire, sell and exchange cryptocurrencies within the Revolut interface.
The constructor of Bitcoin is Satoshi Nakamoto. We are talking about a pseudonym, so it is not known if we are talking about an individual or a group of people.
Satoshi Nakamoto is the name listed as the builder of the bitcoin protocol, who mined the first bitcoin block and executed the first transfer to Hal Finney.
This user made his most recent public contribution to the advancement of electronic currency in 2010.
Until 2016 Gravin Andresen was the most apparent figure of bitcoin.
Although Bitcoin has programmers who act as spearheads, no one controls the virtual currency as no one can monitor the progress of email in the sense that it does not have an exclusive owner.
The developers have the possibility to make the Bitcoin program better, but they do not have the possibility to impose a change in the protocol. This must follow the same rules for all and these are created in consensus among all individuals with their choices about which interfaces they choose to operate, among other things.
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For the end user, Bitcoin is another means of payment, such as the euro and an asset in which to invest, such as a share or oil. So is it safe to invest in bitcoin or not? Faced with this question, it should be understood that behind this entire market there is a technology that is what makes the system reliable. We are talking about blockchain technology that, for example, avoids the double spending of the currency, dares, that someone manages to spend the same bitcoin again.
In a very summarized way, the Bitcoin network is a public accounting system of which each user stores a copy. Whenever someone executes a transfer, it is saved on the computers of the individuals, in a way that is prevented, it is known as double spending.
The following video that we share summarizes how bitcoin and other cryptocurrencies work, their strengths and weaknesses:
And for all those who want to go further about the performance of Bitcoin as a cryptocurrency, here is also a slightly more technical edition:
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The block chain is the technology that is behind bitcoin and that works simultaneously as an information bank and a backup of the system. As we have just seen, in a classic financial system, some transfer is entrusted to a third person (bank, credit card …), who is the one that gives validity to the development. With block technology, it is the individuals themselves who do it.
The blockchain is like a huge digital fact book (transactions in the Bitcoin situation) shared and distributed among quite a few people. It can only be updated from the consensus of the majority of individuals and, once it is updated, the information cannot be deleted.
En este sentido, cada cadena de bloque que se agrega tiene dentro información verificable de todas las transferencias que se realizaron en la narración de bitcoin.
Bitcoin as a means of payment is completely safe, since to make a transfer requires the authorization of most individuals.
The security of bitcoin is also based on the fact that in order to enter your bitcoins, you will need to give your private key. Without that key, no one will be able to enter your bitcoins. In the section on wallets we show you more in aspect what this private key lies in and distinguishes it with the public address, it is something in this way as your bitcoin user and that will help them to send you and you can send coins.
What do you have to do to find a bitcoin? If you have no idea how to invest in bitcoin, we will show you here: currently, there are three ways to get hold of one of these cryptocurrencies: mine bitcoins, acquire bitcoins through an interface and sell something and get paid in bitcoins.
Of the three formulas to find bitcoins, the first two are the most used unless you have an online sales website and also accept payment with virtual currency.
Is the primal way to get bitcoins. Mining work involves using powerful computer equipment to solve mathematical problems, while working as guardians of the security of the currency.
For you to understand it better, it must be remembered that bitcoin is an encrypted code associated with a bitcoin address that is stored in a bitcoin wallet that is part of a physical individual. These bitcoins have the possibility of being sent to other people, used to make payments, exchange for another cryptocurrency or collect.
Each transfer is associated in a block that must be sealed. This development requires complex mathematical calculations and, therefore, requires a lot of computing power to carry out. That’s where the miners come in. As a reward for lending their equipment for this work, the Bitcoin network releases blocks with new bitcoin for which the miners compete. If you want to know more about the mining of Bitcoins, here you can expand information to understand what the halving of bitcoin is and what it has about the cryptocurrency.
To mine bitcoins on your own you need a strong group specialized in this task. The rationale is that with the increase in rivalry, domestic teams do not have enough capacity for the work to be productive.
Currently the special equipment is perfected and integrates ASIC circuits. Its price ranges from 1,300 euros to well over 2,000. Among the homes that manufacture them are the Chinese Canaan, Bitmain, BitFury or Spondoolies Tech.
In this set, there will be a need to assemble specific hardware to mine bitcoins that are often sold by the developers themselves. In other words, the software that will take care of mining correctly.
Lately, an option formula has emerged to mine bitcoins without having to have your own PC. It is cloud mining, with which a mining contract is rented with some mining capacity (ability to solve those algorithms we were talking about). Instead of having the equipment at home or in a warehouse, you pay a focused company, which is the one that does the work and then shares the profits with you. Of course, keep in mind that most of them will reserve the right to keep everything obtained if they know that the value of bitcoin at that moment does not cover their costs or does not leave enough margin.
The time it takes to mine a bitcoin will depend primarily on the processing capacity or mining capacity. The bigger it is, the less time it will take. Currently the machines already have within approximate statistics of the time that can be driven and the success options.
What must be taken into account is that according to more people dedicate themselves to mining and the more rivalry there is, the more complicated it will be to mine and the more capacity it will be elementary. In the same way, there are less and less bitcoin left (remember that a higher than 21 million will be issued) and that is why the network makes it more difficult to mine them.
This is the one million question. Is it productive to mine bitcoin? Can you really make a living from this and make a fortune? As you just saw, making money mining is not that simple. There are several components that influence, starting with the processing capacity you have.
If you want, there are also calculators on the internet that offer you the benefit of undermining your capacity in functionality.
In any situation, the profitability of mining bitcoins is directly related to the value of bitcoin. The more expensive the coin, the greater the profitability and vice versa. In this sense, if the disappointment to mine continues to increase because more and more
People go into business and do it with more powerful equipment (called potential mining). The result is that more and more items have to be invested to make money mining bitcoins.
Another issue is that to be able to mine bitcoins with all the laws you will have to offer to register with the IAE in section 831.0 of part 1.
In addition, if you earn well over 13,300 euros (the Minimum Interprofessional Salary) you will also have to become self-employed and make the payments the corresponding self-employment fee.
Another formula to find bitcoins is to invest in virtual currencies. In other expressions, speculate with the cryptocurrency as we would with gold, oil or any other action.
To acquire bitcoins, just go to one of the bitcoin trading interfaces. For those who already invest in the stock market, their performance will be similar, although something new to that of a broker to use. See best 10 brokers 2021
These interfaces are called bitcoin wallets and it is where virtual currencies are stored. There are various types of bitcoin wallets in terms of functionality such as security and ease of use.
The first are bitcoin wallets for PC, which you can download as a program for your PC. Second are the online wallets of virtual currencies, which have the possibility of being for devices or for computers, it is indifferent. The second are the most secure and are the hardware wallets. In other expressions, a physical electronic that will store the virtual codes of your cryptocurrencies.
As a user you can use one or numerous virtual wallets that will have their backup keys and their encryption system. In this sense, it is recurrent that online wallets ask for double password confirmation via text message.
>>>> See best wallets
The benefits of investing in cryptocurrencies are obvious. The first is the colossal profitability you can get, as long as you bet or bet at the right moment. As with any other asset, and more so after turning into a tilt, the timing of the investment in bitcoin is critical. From there everything has to be believed or not in its future as an option to the usual currencies or fiat currencies. If you are the one who trusts that this kind of system and the blockchain will generally end up having a hole, the investment in the long run is going to be attractive.
That speculating with bitcoin is attractive does not mean that it is not without its dangers. The most relevant is that bitcoin is very volatile. In fact, it is incredibly volatile. Its price can suffer variations of well more than 10% in a single session, so speculating with the traditional rules can be difficult. In addition, you must take into account what your danger profile is. If you are not prepared to tolerate losses of this kind, maybe Bitcoin is not for you. In this utility that we provide you can investigate what your investor profile is.
Investing in bitcoins is not exempt from paying taxes. In fact, there will be taxes for them in the income statement and the Wealth Tax – here you can see if you are obliged to present it – The bitcoin in the income. If you have bought and sold bitcoins in 2020 you must include them in the 2020 income as a family gain or loss. The taxation of bitcoins in personal income tax is very similar to that of stocks or what happens when you reimburse an investment fund. For you to understand it better, when carrying out the income you will have to integrate the result of the operation in the capital gains and losses section. For that you will have to subtract the acquisition value from the sale price.
If it’s positive, it’s going to be a profit. Otherwise it will be a loss. This figure will be integrated with the rest of capital gains or losses to be taxed under the savings rates, which for income tax 2021 are the next Earnings less than 6,000 euros – 19 Earnings between 6,000.01 euros and 200,000 euros 21% Earnings greater than 200,000 euros – 26% Of course, if you carried out all the operations of acquisition and sale of Bitcoin throughout the year 2020, keep in mind that the taxation that is going to be applied to you will be that of that year. In this text you can see the income boxes in which to integrate the bitcoins. Bitcoins in Wealth Tax As long as you have bitcoins in your Bitcoin Wallet, you should not pay income for them, but you should pay Wealth Tax.
Bitcoins are not the exclusive cryptocurrency on the market, although they are the most relevant. There are other virtual currencies that compete with it, each with its own philosophy as a currency. As an example, if the number of bitcoins is finite (21 million), in ethereum there is no limit communicated. So what are the picks for Bitcoin? The aforementioned ethereum is on this day one of the considerable choices to bitcoin, mainly for miners, but not the exclusive one for the so-called Altcoins. These currencies emerge because the bitcoin code is open. In this article you can see all the critical coins on the market and the most profitable ones.
Altcoins can be acquired in this way than bitcoin, through brokers and so-called exchangers. Interfaces such as Coinbase, BitPanda and the like will allow you to make these cryptocurrencies choices to bitcoin. However, the really recurring thing tends to be acquiring bitcoins and then transforming them into one of the cryptocurrencies of choice. In this sense, Bitcoin works as a gateway to the entire virtual currency market and serves as a backup for transfers. Today there are well over 300 virtual currencies. These are the most notable in terms of volume and potential.
Litecoin belongs to the first altcoins with its own name. It emerged in 2011 with a limit of 84 million US coins. u builder was former Google engineer Charles Lee, who was looking to make Bitcoin better and did so in terms of block generation times for huge transfers. For that, it uses a different mining algorithm that is not within the reach of a regular PC. Its capitalization as of September 2017 is 4,000 million USD.
It belongs to the cryptocurrencies that grew the most and some already place it above bitcoin as a potential means of payment and electronic currency. Therefore, many people wonder if it is preferable to buy bitcoin or ethereum. We are talking about an interface where a creator can make Smart contracts, a new generation application whose use goes beyond the financial issue. Bone, it transfers the block chain to other surfaces. The currencies of the ethereum network are named ether. Transfers on this network are faster, lasting only 15 seconds, and due to the encryption techniques it uses, it is possible to mine ether with a regular PC. Also, unlike bitcoin, the reward for mining does not decrease every year. o Darkcoin What characterizes the dash, originally called Darkcoin, is the anonymity in the transfers.
Is an altcoin opaque that discards, within its options, the origin of the transfers. Ripple Coin It is the virtual currency of the bank, so in a sense it fights against the criteria that underlies bitcoin. Anyway, the Ripple Coin is the testing ground for Banco Santander UK blockchain technology in conjunction with the start up Ripple. What distinguishes it from other cryptocurrencies is that its use is limited, for the moment, to Banco Santander users.
Monero utilices a different protocol than Bitcoin, which limits its functionality. In 2016 it proliferated under the cover of the dark internet, because the data of the transfers with this currency are not public. There are others such as Dogecoin, whose value is far below other cryptocurrencies and which has been used as a means of payment for jobs on the network. In this enlace you can see the most attractive: In which cryptocurrencies to invest in 2021. >>bitcoinnews
DISCLAIMER: Keep in mind that past returns are not a guarantee of future returns. This article, Bitcoin and Cryptocurrencies, provides only information on the behavior of various financial products and does not constitute a purchase recommendation. Nor does it constitute a financial advice proposition. From BitcoinNews we believe that each investor should know well the risks, inform themselves and compare between different options before contracting any financial product or service. Bitcoin and Cryptocurrencies.