How the cryptocurrency works

Bitcoins are considered the new gold. How does the cryptocurrency work? Where can you get Bitcoins? Read here whether it is worth investing in cryptocurrencies.


Bitcoins - the digital coins


Bitcoins are popular, but extremely risky: In October 2021, bitcoin had marked a new all-time high at more than 66,000 dollars and more than doubled within three months. The hype has come to an end for now.


Bitcoins have only existed since 2009. At the beginning of 2011, the Bitcoin price was one dollar.


Virtual Bitcoins, managed in the blockchain


The term Bitcoin is composed of the word for the smallest digital unit, the bit, and the English word coin. A certain Satoshi Nakamoto is responsible as the inventor - although it is still not clear which brain is behind it. It is possible that this is a group of people.


There are neither coins nor bills of Bitcoins, BTC for short. They exist only virtually, as a digital string. Even though they are often compared to gold: There is no real value behind them. New Bitcoins are created by the users themselves with the help of mathematical processes. The credits and payments are managed in a decentralized network, the blockchain. In order to post a transfer with Bitcoins, complicated calculations have to be solved. The first person to do this gets Bitcoins as a reward. This is known as mining, or the "digging of Bitcoins".


The dark side of Bitcoins

In the past, Bitcoins were primarily regarded as currency for dealers who used them to conduct arms and drug transactions on the darknet. Literally translated, the darknet is the dark side of the Internet, where users can surf largely anonymously. Bitcoin also hit the headlines in connection with ransomware.

The end is reached at 21 million Bitcoins

According to the website Coinmarketcap, there are a good 18.8 million Bitcoins so far, and the end is supposed to be at 21 million. However, the growth is slowing down more and more. You can also trade fractions of Bitcoins, for example Millibitcoins.