TECHNOLOGICAL UNIVERSITY OF HONDURAS

Campus: Choloma
Subject: English V
Professor: Lic. Madelin Moreno
Student: Heydi Yorgeni Peña
Cta. 201820120056

24/03/2021
Introduction

Bitcoins are a type of virtual currency, the following summary deals with this topic,
its definition and operation.
Summary

Definition

Bitcoin is a cryptocurrency or virtual currency. It is a self-regulated payment unit

without physical reference or endorsement from a country, which preserves the
anonymity of its owners and whose transactions are carried out through the
internet using encrypted codes and confirmed in a multiple way by the members of
the network themselves (through the so-called 'blockchain' technology, in practice
an accounting book or shared record of the activity). Knowing a code makes you
the owner of that asset (cryptocurrency). It is a completely digital currency.

Bitcoin was created by Satoshi Nakamoto in 2009, along with the software that
supports it. To this day it remains a mystery who is behind that name, a person or
an institution. Bitcoins are created through a process known as bitcoin mining.

Although bitcoin does not exist physically, it has the same functions as other
money, but unlike a bill or a non-virtual currency, bitcoins do not have a serial
number or other type of mechanism to be able to trace to buyers and sellers who
use this virtual currency. This makes it attractive to those who want or need
privacy in their transactions.

Functioning

The blockchain is a fundamental piece for the operation of bitcoin, since in order to
falsify a transaction, it would not be enough to change one or more computers.
Being a public registry, there can be millions of copies and the registries of all the
computers that keep a copy would have to be changed, which is practically
unfeasible, since it is an open and public database.

In addition, bitcoin transactions are open source for their operation and do not
need any intermediary to carry out the transactions. Therefore, it promises to have
lower transaction costs.

With bitcoins you can pay for a good or a service. You can buy bitcoins in
exchange houses or create bitcoins using machines designed for it. The bitcoin
would be the result of the payment for the theoretical consumption of the energy
required in the process of its creation. Without having a merchant account you can
have bitcoins. A virtual wallet is required to operate. Payments are generally made
through mobile or computer applications, entering the recipient's address (the
bitcoin account), the amount to be paid and pressing send. Once the button is
pressed there is no going back, the virtual currency will have changed hands.

Characteristics of bitcoin

• Limit of 21 million: The number of units can never exceed 21 million

bitcoins. Therefore the money supply is limited, unlike fiat currencies, where
the central bank can issue as many as it wants.
• Cannot be censored: No one can ban or censor transactions that have
been validated.
• It is open source: The source code used must always be accessible to
everyone.
• Access to everyone: Everyone can make transactions in bitcoins without
the need for a permit. No one can prevent participation in the network.
• It uses pseudonyms: The real identity of its owner is not reflected and it is
not necessary to identify yourself to participate in the bitcoin network,
 although unlike an anonymous network, it allows the possibility of
generating a reputation and trust among the different users.
• It is expendable: All units are interchangeable.
• Payments are irreversible: Transactions that have been confirmed cannot
be modified or deleted.

Creation of bitcoin

The BTC generation process is through cryptocurrency mining. It consists of

solving highly difficult mathematical problems thanks to computer processors.

The person who solves a problem receives a reward in BTC in return. Incentive
that makes more people join this process. Each participant is connected to each
other through the P2P system and they validate each movement in the system.
Therefore, the more participants there are, the more secure the process will be.
On the other hand, as problems are solved, their difficulty increases. In this way,
the speed of BTC generation is controlled.

How they are used

• Serves as an accounting unit

• Exchange medium
• Means of preservation of value

How to buy with bitcoin

1. Convert your money into bitcoins.

2. Save them in our virtual wallet created in one of the many free servers that
exist. For example, blockchain. The wallet is a random combination of 33
alphanumeric characters similar to this:
1VtU9rMsQ47rCqsGAvMtw89TA5XT2dB7f9

3. You can now pay and collect in BTC! To pay, you will only have to access your
electronic wallet with your username and password. Enter the code of the
recipient's wallet and the corresponding amount. To collect, all you will need is to
provide your code to the person who must make the payment.
Conclution

This currency can be used to purchase products or services, the support it has
from financial groups has given bitcoin a value that the rest of the cryptocurrency
does not have. However, it is not advisable to invest in this type of currency since
it is very volatile, which has seemed like a game of chance instead of an
investment.
https://economipedia.com/definiciones/bitcoin.html

https://www.elperiodico.com/es/economia/20210224/bitcoin-que-es-6467132

Annexes