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Before explaining how bitcoin (sign: BTC, XBT) works I have to say that, like all other existing currencies, it does not have a physical backing of its value as previously happened with paper money (gold) This is based on the confidence generated by the issuer, ie we believe, and others too, that the bill we have in the portfolio or bitcoin we have in a wallet represents a commercial value which can acquire a given good .
Now, in your country you know well that the government is responsible for making paper money but what bitcoins, where they come from, who "made"? First things first, back in 2009 a man named Satoshi Nakamoto came up with the idea of implementing a virtual currency for their ability to stay safe out quickly accepted worldwide, from there a group of settled work that allowed the creation of nodes or "branches" in different parts of the world that made possible the handling of it. These are responsible for making the bitcoins and do (to keep things simple I will say that) so "random", thereby enabling the "branch" the right to create new bitcoins gained receive "real" money "branches" that financially compensate their effort, technological and administrative expenditure; 25 BTC are created every 10 minutes or so.
From this moment, and that we understand it better, every bitcoin is assigned a number and a holder or owner that is distributed among all the "branches" and each time it changes hands this information is refreshed in such bitcoin so that you keep in your wallet brings all the information from the very moment it was created until now, who were the owners and when detached from it. Herein lies the strength is that the security of BTC as virtual currency, in which each and every one of "branch" has all the updated information and each bitcoin created so far. When it is intended to exchange bitcoins and some of the "branches" no match this information jump the alarms and the transaction is not carried out.
Some large companies such as Microsoft, Dell, Time Inc., Dish Network, Virgin Galactic, Reddit, or WordPress among others, and accept bitcoin payments, Paypal announced last year that it would begin work to implement it well, day day more companies join the acceptance of BTC as Exchange, hopefully sooner than later the barriers that remain in some minds and acceptance of universal way they are torn down without any qualms.
In closing I know many of the experts in the subject will be longing for terms such as chain block, peer-to-peer, Proof-of-Work, hash, digital signature, mining, cryptography, but criptodivisa and others wanted to do the This post in the simplest way possible; anyway who want to dig a little deeper on the subject can do