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      "author": "futureneet",
      "body": "@@ -559,19 +559,8 @@\n ento\n- che boludo\n ..? \n",
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      "parent_author": "",
      "parent_permlink": "cryptocurrency",
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      "title": "Como funcionan las criptomonedas?"
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      "author": "saeed1",
      "body": "well written :)",
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{
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  "op": [
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      "author": "futureneet",
      "body": "![CF7305EC-A56E-41B6-B3BC-23E1C89CFC3D.jpeg](https://steemitimages.com/DQmQBb1sE2EdFcRviSG7Hb5K8C7V6kp4YkQQaHg7g6eTqLb/CF7305EC-A56E-41B6-B3BC-23E1C89CFC3D.jpeg)\n*Imagen creada por 3Dsculptor en Shutterstock*\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\n\nEn el post original en inglés hize una broma diciendo esencialmente que si no sabes que es el Bitcoin probablemente estás ciego y sordo, pero eso no aplica a la comunidad hispanohablante, así que... Investigué el Bitcoin y te lo cuento che boludo..? No sé. Este artículo es largo así que si quieres un resumen de todo lo investigado solo ve al final del artículo.\n\nEl Bitcoin es una **criptomoneda**. Las criptomonedas son formas de dinero que no están controladas por ningún gobierno o banco central, por lo que no pueden ser rastreadas. Tal vez pienses que con tal moneda se puedan comprar cosas de legalidad cuestionable en las cuales no entraré en más detalle. Estás absolutamente en lo correcto así que solo sigamos con el artículo. Las criptomonedas también son completamente a prueba de falsificación, debido a los algoritmos avanzados y criptografía astuta, usadas como medidas para la seguridad de transacciones.\n\nLas criptomonedas son manejadas usando **billeteras de criptomoneda**, las cuales llamaré solo billeteras de ahora en adelante. Así se llaman, aunque no son como billeteras, en el sentido de que contienen dinero. Estas contienen \"registros\" de transacciones en el **Blockchain** (El cual explicaré en breve). Así que recibir Bitcoins (Que de ahora en adelante llamaré BTC) es como recibir gift cards que no son inútiles.\n\nPara realizar una transacción se necesita acceso al **Blockchain**, el cual es, como se explica en la [página oficial de Bitcoin](https://bitcoin.org/es/how-it-works) \"Un libro de contabilidad público en el cual toda la red de BTC depende.\" (Esto puede ser aplicado a cualquier otra criptomoneda) y mantiene un registro de cada transacción hecha. Esto hace que los usuarios puedan revisar su balance actual y que usuarios no usen dinero de otras personas al realizar una transacción.\n\nPara realizar transacciones, Blockchain utiliza dos llaves, llamadas **llave pública y privada** respectivamente. Estas dos llaves están formadas por un número entero muy largo. Estos números son tan extensos, que se acortan usando un método llamado [Wallet Import Format](https://en.bitcoin.it/wiki/Wallet_import_format) a un dígito relativamente corto que contiene letras y números para poder ser usado más fácilmente.\n\nUna **llave privada** es una llave privada. Si quieres entrar en más detalle, una llave privada es una clase de \"firma\" para cada usuario: cuando uno hace una transacción, esta es firmada usando su llave privada como medida de seguridad para garantizar que dicha transacción está hecha por el dueño de la llave y no otra persona. Si alguien tuviera tu llave privada podrían transferirse tu dinero a su cuenta. Una **llave pública** es un dígito derivado de la llave privada y es lo que otros usan para transferir BTC a tu billetera. Este dígito es simplificado usando una función hash, (Trataré de hacerlo sonar simple, ya que yo mismo no lo entiendo muy bien) la cual es una manera de convertir cantidades de información variadas en dígitos, los cuales son mucho mas cortos. Este proceso se hace a un costo de procesamiento muy bajo. Ese código simplificado es la dirección que todos ven y pueden usar para realizar transacciones.  La llave pública contiene información sobre la red y un checksum (Un proceso que busca errores cometidos durante la transferencia o depósito de información).\n\nTal vez te estés preguntando (Espero que no haya sido el único) como las criptomonedas mantienen su valor. Pues es fácil, la verdad. Consiste en reserva y demanda. Mientras más y más gente compra una \"cosa\", si no hay suficientes reservas de \"cosa\" el precio de esta sube. Tomaré dos ejemplos: \n\nEl primer ejemplo es el petro. Como (probablemente) solo latinos están leyendo esto, me imagino que ya sabrán quien es nuestro salvador, el hombre, [el ser vivo más inteligente de todo el universo](https://www.youtube.com/watch?v=MFFVPZBl9dE), Nicolás Maduro. El fue el genio detrás de esta nueva criptomoneda, denominada petro. Esta, la cual está respaldada por el precio del petróleo, ha atrapado el interés de tantos venezolanos que su valor es de casi un dólar.\n\nEl segundo es BTC. Este tuvo un aumento titánico en popularidad y precio recientemente en 2017, el cual ocurrió desde noviembre hasta la mitad de diciembre. Según [Bitcoin.com](https://charts.bitcoin.com/chart/price), un lento aumento de precio ocurrió desde mayo hasta el aumento.\n\n![sdf.png](https://steemitimages.com/DQmQFRnotLUsRWA8qg1qGboa9LBc1ZfYwJ7E5Au6iZoB3eF/sdf.png)\n\nAhora hablaré específicamente sobre el Bitcoin, ya que es la criptomoneda principal y también la primera en el mundo. En 2008 **Satoshi Nakamoto** publicó [un articulo](https://www.mail-archive.com/[email protected]/msg09959.html) en el cual introdució el concepto del BTC. La identidad de Satoshi Nakamoto no es conocida, así que podría ser tanto una persona como un grupo de personas. El 3 de enero de 2009 la red de BTC fue creada y el primer **bloque** (El cual en ese tiempo equivale a 50 BTC) fue minado por su mísmisimo creador. La primer transacción, usando 10.000 BTC, fue usada para comprar indirectamente... un par de pizzas. Tengo el link del post, pero no se si debería postearlo aquí ya que el comprador menciona su dirección. Si solo quieres saber cuanto dinero es eso, son 41$. Ouch.\n\nAhora explicaré el Bitcoin mining. Aunque tenga ese nombre, el BTC no es la única criptomoneda capaz de ser minada. Minar es cuando un grupo de usuarios usan el poder de procesamiento de sus propias PCs para resolver problemas matemáticos complejos, y el primer usuario en terminar de resolver estos problemas es premiado con la **recompensa de bloque actual.** Para saber que es eso, debemos entrar en más detalle sobre los problemas resueltos por los usuarios. Estos son dados un **bloque** de funciones hash (Las cuales mencioné antes) las cuales son resueltas usando un algoritmo el cual trata de convertir la información simplificada a su estado original. Las funciones dadas sirven para verificar transacciones hechas previamente en el Blockchain. Además de esto, se debe saber que las reservas de BTC no son ilimitadas, aunque esta sea una moneda digital. El límite de BTC minados es de 21 millones, y cada 210.000 minados la cantidad de BTC dados por minar un bloque se reduce en un 50%, iniciando en 50 y terminando en el número actual de 12,5. El mining se ha convertido en una clase de peligro, ya que debido al uso de computadoras especiales usadas para minar BTC, este consume mucha energía. El Bitcoin mining consume mas energía cada año que países como Irlanda y Dinamarca.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\n# **Resumen**\n\nLas **criptomonedas** son una forma de dinero que no está manejada por algún país, por lo tanto se vuelven difíciles de rastrear para que puedas comprar coca libremente, te dejaré a ti decidir cual tipo. Estas son manejadas por **Blockchain**, que maneja y registra todas las transacciones hechas. Para realizar una transacción, se necesita una **billetera de criptomonedas**, la cual no contiene dinero, pero más como **registros** de recibir dinero. Estas usan **dos llaves, pública y privada** para realizar transacciones. La llave **privada** es como una contraseña en el sentido de que es importante mantenerla secreta y la utilizas para realizar transacciones. Si alguien más la obtuviera podría pasarse tu dinero a su cuenta. La **llave pública** deriva de la llave privada y contiene información sobre la red y un checksum, que busca por errores durante una transacción. Esta es comprimida y luego convertida en la **dirección** que los demás usan para transferirte dinero. El Bitcoin Mining es cuando un usuario (Usualmente usando una computadora especializada para el mining) resuelve problemas matemáticos complejos usando el poder de procesamiento de su PC. Estos problemas matemáticos ayudan con la seguridad del Blockchain, por lo cual el primer usuario en resolver tales problemas es premiado con una cantidad determinada de BTC.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\nEse es técnicamente mi segundo post, pero solo es una traducción del primero. Si alguna parte del artículo está mal explicado o la información es incorrecta, háganme saber en los comentarios.",
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      "author": "futureneet",
      "body": "![CF7305EC-A56E-41B6-B3BC-23E1C89CFC3D.jpeg](https://steemitimages.com/DQmQBb1sE2EdFcRviSG7Hb5K8C7V6kp4YkQQaHg7g6eTqLb/CF7305EC-A56E-41B6-B3BC-23E1C89CFC3D.jpeg)\n*Image provided by 3Dsculptor on shutterstock*\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\nIf you frequent the use of the internet or watch the news, or you’re not blind and deaf, chances are you’ve recently heard of this thing called a Bitcoin. Maybe you know what it is, and haven’t looked more into it, or you really have no idea what it is or could be (somehow). Well, if you fall into either one of these categories then let me tell you about it. If you don’t want to read the entire article and just want a short explanation I’ll be including one at the end of the article.\n\nBitcoin is a **cryptocurrency**. If you don’t know what that is, it’s a type of currency (If that wasn’t obvious enough) that isn’t regulated or controlled by any central banks. This fact alone brings up a number of advantages, the main one being that transactions made using a cryptocurrency cannot be traced or taxed by governments. Given that, you may be thinking that they could be used for buying legally questionable things which I will not mention or get more into detail about in this article. You’re absolutely right so let’s move on.\n\nCryptocurrencies also are completely safe from counterfeiting, as they use equations to measure how much can be produced by mining PCs (Don’t worry, we’ll get to that later).\n\nThese are controlled by **cryptocurrency wallets** (Which from now on I’ll be calling just “wallets”). Now given, these are not much like real wallets, because they’re digital, and they’re also not much like wallets in general, because they don’t contain currency per se. Their contents are more like records of a transaction being made, which you can then use for spending money. So they’re like gift cards except they’re not near useless.\n\nTo make transactions, access to **Blockchain** is necessary. Blockchain is, as is explained in the [official Bitcoin page](https://bitcoin.org/en/how-it-works) “a shared public ledger on which the entire Bitcoin network relies.” (You can just apply that to any other cryptocurrency) And it keeps a record of every transaction made using it. This makes it so that users can check their current balance and that people spend their own money, and not other’s.\n\nTo do this, Blockchain uses two things, called **public and private keys**. First things first, both of these types of keys are large integer numbers, (Integer meaning that it doesn’t have any fractional components) but these have so many digits that they’re usually shortened using an encoding method called [Wallet Import Format](https://en.bitcoin.it/wiki/Wallet_import_format), which converts them into a much shorter version that contains both letters and numbers.\n\nA **private key** is a private key. But if you want to get more specific, a private key can be thought of as a signature for each user: When an user makes a transaction using a cryptocurrency, said transaction is “signed” with it. This is done to make sure that the payment comes from said user, and not other person. If someone other than the owner of a private key gets said key, they would be able to transfer other user’s money to their own account, so you could think of it as a “password” of sorts. A **public key** is derived from the user’s private key, and is what other people use to transfer money to said user. This is done by converting it to a simpler format using a hash function (To make it simple, as I don’t completely understand it myself, a hash function is a way to compress varying amounts of information into shorter bits of code at a low processing cost. [Here’s the Wikipedia article if you’re interested](https://en.wikipedia.org/wiki/Hash_function)) which then turns it into the address that everyone sees. The public key contains information about the network and a checksum (A way of checking for errors during transmission or storage of data).\n\nYou may be asking yourself (At least I hope I wasn’t the only one) how cryptocurrencies hold their value, since they’re not backed by any country. Well, it’s simple: supply and demand. The more and more people are interested in a certain thing, the demand for it increases. If the demand increases and the supply of “thing” is not enough, the price goes up. I’ll use two examples:\n\nFirst one is Petro. You might not have heard about, so it is my duty to enlighten you. This is a cryptocurrency created by Nicolás Maduro, backed by the price of a single oil barrel. If you don’t know who he is, I’ll just tell you that [he´s](https://www.huffingtonpost.com/2013/08/28/nicolas-maduro-penises_n_3831686.html \"The\") [the](http://www.nytimes.com/2013/04/09/world/americas/even-in-death-chavez-dominates-venezuelas-presidential-race.html \"Man's\") [smartest](https://www.usatoday.com/story/news/world/2013/08/10/venezuela-maduro-chavez-mausoleum/2638351/ \"A\") [man](http://www.independent.co.uk/news/world/americas/venezuela-nicolas-maduro-rabbits-breed-hunger-malnourishment-a7947591.html \"F*cking\") [alive.](https://venezuelaconspiracytheories.blogspot.com/2013/06/dollar-nymphomania-could-be-part-of.html \"Idiot\") [The Venezuelan population](https://www.nytimes.com/interactive/2017/12/17/world/americas/venezuela-children-starving.html \"Yes, the things i put there earlier are real, if you know spanish you can search the clips up on youtube\") is so interested in this new cryptocurrency that the current price is almost a dollar.\n\nSecond one is Bitcoin. Chances are you’ve heard about Bitcoin fairly recently, due to the sharp rise in price which is, at the time of writing this, 11.122,14 USD. According to [Bitcoin.com](https://charts.bitcoin.com/chart/price), a slight rise started on 2017 around the end of May and started to snowball at a moderate pace, until the spike in price occurred from November to midway through December. While I don’t exactly know how the interest in Bitcoin raised so much, i would assume it was the slow rise that happened from May to November which starts at 1322 USD and ends (right before the spike) at around 7077 USD. Here's the chart, with the start of the price spike marked:\n\n![sdf.png](https://steemitimages.com/DQmQFRnotLUsRWA8qg1qGboa9LBc1ZfYwJ7E5Au6iZoB3eF/sdf.png)\n\nNow I’ll talk a bit specifically about Bitcoin. Bitcoin is the main cryptocurrency, and also the first one to ever exist. I’ll just be quick because this article is already long enough. In 2008, **Satoshi Nakamoto** published [an article](https://www.mail-archive.com/[email protected]/msg09959.html) in which he introduced the concept of bitcoin. Satoshi Nakamoto’s identity is not known, so they could be a single person or a group of people. The 3rd of January on 2009, the bitcoin network was created and the first block of Bitcoins (50 of them) was mined by none other than it's creator, Satoshi Nakamoto. The first transaction made had a value of 10.000 Bitcoins which were used to indirectly buy… two pizzas. I have the forum post, but I don’t know if I should put it here because the buyer mentions their zip code. If you just want to know how much that was, according to someone else in the thread it was about 41 USD. Ouch.\n\nNow, what have I been talking about every time I said **“mining”**? Well, it’s simple. It’s a way to get Bitcoins, for example, as it can be used with other cryptocurrencies. Mining is when a computer (Which usually has a lot of processing power to make it more effective) is used to solve complex math problems. When users are finished with mining, the first one to finish all of these problems is paid with an amount of bitcoins equal to the current block reward. To know what that means, we’ll have to go back to those math problems I mentioned. See, when you mine Bitcoins, you’re given a set of hash functions, which I mentioned earlier. These hash functions are solved with the purpose of verifying previous transactions in the Blockchain, which is the reason why miners are rewarded with free Bitcoins, as it encourages people to mine and helps with security measures. This set of hash functions is called a block. Now, the **“block reward”** thing. See, Bitcoins are not exactly unlimited. They have a limit to how many can be mined, which is 21 million, and every 210.000 blocks mined the reward for mining one of them will be halved. Starting from 50 on 2009, the block reward is currently 12,5 Bitcoins. So now you can connect the dots. This is the reason why Bitcoin is becoming kind of hazardous, as mining consumes more electricity per year than some countries like Denmark or Ireland.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\n# Summary\nNow, for the short explanation (I hope I did this right):\n\n**Cryptocurrencies** are a type of currency not handled by any country. This also makes them untraceable so you can safely buy coke, I’ll let you guess which type of coke I’m talking about. They’re handled by **Blockchain**, which is like a public ledger that keeps note of every transaction made using them. To use these, you need a **cryptocurrency wallet**, which doesn’t really contain your money per se, but more like **records** of receiving money. To transfer or receive them, you have your **private and public key**. Your **private key** works as a signature for your transactions in the sense that it guarantees that it was you who made said transaction. If someone else got it *__you’d get fucked,__* to put it shortly. Your **public key** is the address people use to send money to you. Cryptocurrencies keep their value due to supply and demand, and they can be mined. This, commonly called **“Bitcoin mining”** is done is by solving a set amount of math problems which are used to verify transactions made in the Blockchain, which uses a large amount of processing power, making mining productive for both parties, the user and network, since the first user, and only the first one to solve all these problems gets a set amount of Bitcoins for it, making a powerful PC almost necessary for this task.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\nSo that’s it. This is my first post, so *__please have mercy on my soul if I did anything particularly wrong__*. If there’s anything I think could be wrong is phrasing, since I’m a native Spanish speaker (I’ll be posting this on Spanish later so if you didn’t understand much, look out for that) and I kinda know English. When making my account, I didn’t really know what type of content I should write, so i´m going to try a few different things. If you liked this kind of informative thing, I’ll definitively be making more articles like this, since I had much more fun than I expected. I hope everything I wrote was understandable.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)",
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      "author": "futureneet",
      "body": "![CF7305EC-A56E-41B6-B3BC-23E1C89CFC3D.jpeg](https://steemitimages.com/DQmQBb1sE2EdFcRviSG7Hb5K8C7V6kp4YkQQaHg7g6eTqLb/CF7305EC-A56E-41B6-B3BC-23E1C89CFC3D.jpeg)\n*Image provided by 3Dsculptor on shutterstock*\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\nIf you frequent the use of the internet or watch the news, or you’re not blind and deaf, chances are you’ve recently heard of this thing called a Bitcoin. Maybe you know what it is, and haven’t looked more into it, or you really have no idea what it is or could be (somehow). Well, if you fall into either one of these categories then let me tell you about it. If you don’t want to read the entire article and just want a short explanation I’ll be including one at the end of the article.\n\nBitcoin is a **cryptocurrency**. If you don’t know what that is, it’s a type of currency (If that wasn’t obvious enough) that isn’t regulated or controlled by any central banks. This fact alone brings up a number of advantages, the main one being that transactions made using a cryptocurrency cannot be traced or taxed by governments. Given that, you may be thinking that they could be used for buying legally questionable things which I will not mention or get more into detail about in this article. You’re absolutely right so let’s move on.\n\nCryptocurrencies also are completely safe from counterfeiting, as they use equations to measure how much can be produced by mining PCs (Don’t worry, we’ll get to that later).\n\nThese are controlled by **cryptocurrency wallets** (Which from now on I’ll be calling just “wallets”). Now given, these are not much like real wallets, because they’re digital, and they’re also not much like wallets in general, because they don’t contain currency per se. Their contents are more like records of a transaction being made, which you can then use for spending money. So they’re like gift cards except they’re not near useless.\n\nTo make transactions, access to **Blockchain** is necessary. Blockchain is, as is explained in the [official Bitcoin page](https://bitcoin.org/en/how-it-works) “a shared public ledger on which the entire Bitcoin network relies.” (You can just apply that to any other cryptocurrency) And it keeps a record of every transaction made using it. This makes it so that users can check their current balance and that people spend their own money, and not other’s.\n\nTo do this, Blockchain uses two things, called **public and private keys**. First things first, both of these types of keys are large integer numbers, (Integer meaning that it doesn’t have any fractional components) but these have so many digits that they’re usually shortened using an encoding method called [Wallet Import Format](https://en.bitcoin.it/wiki/Wallet_import_format), which converts them into a much shorter version that contains both letters and numbers.\n\nA **private key** is a private key. But if you want to get more specific, a private key can be thought of as a signature for each user: When an user makes a transaction using a cryptocurrency, said transaction is “signed” with it. This is done to make sure that the payment comes from said user, and not other person. If someone other than the owner of a private key gets said key, they would be able to transfer other user’s money to their own account, so you could think of it as a “password” of sorts. A **public key** is derived from the user’s private key, and is what other people use to transfer money to said user. This is done by converting it to a simpler format using a hash function (To make it simple, as I don’t completely understand it myself, a hash function is a way to compress varying amounts of information into shorter bits of code at a low processing cost. [Here’s the Wikipedia article if you’re interested](https://en.wikipedia.org/wiki/Hash_function)) which then turns it into the address that everyone sees. The public key contains information about the network and a checksum (A way of checking for errors during transmission or storage of data).\n\nYou may be asking yourself (At least I hope I wasn’t the only one) how cryptocurrencies hold their value, since they’re not backed by any country. Well, it’s simple: supply and demand. The more and more people are interested in a certain thing, the demand for it increases. If the demand increases and the supply of “thing” is not enough, the price goes up. I’ll use two examples:\n\nFirst one is Petro. You might not have heard about, so it is my duty to enlighten you. This is a cryptocurrency created by Nicolás Maduro, backed by the price of a single oil barrel. If you don’t know who he is, I’ll just tell you that [he´s](https://www.huffingtonpost.com/2013/08/28/nicolas-maduro-penises_n_3831686.html \"The\") [the](http://www.nytimes.com/2013/04/09/world/americas/even-in-death-chavez-dominates-venezuelas-presidential-race.html \"Man's\") [smartest](https://www.usatoday.com/story/news/world/2013/08/10/venezuela-maduro-chavez-mausoleum/2638351/ \"A\") [man](http://www.independent.co.uk/news/world/americas/venezuela-nicolas-maduro-rabbits-breed-hunger-malnourishment-a7947591.html \"F*cking\") [alive.](https://venezuelaconspiracytheories.blogspot.com/2013/06/dollar-nymphomania-could-be-part-of.html \"Idiot\") [The Venezuelan population](https://www.nytimes.com/interactive/2017/12/17/world/americas/venezuela-children-starving.html \"Yes, the things i put there earlier are real, if you know spanish you can search the clips up on youtube\") is so interested in this new cryptocurrency that the current price is almost a dollar.\n\nSecond one is Bitcoin. Chances are you’ve heard about Bitcoin fairly recently, due to the sharp rise in price which is, at the time of writing this, 11.122,14 USD. According to [Bitcoin.com](https://charts.bitcoin.com/chart/price), a slight rise started on 2017 around the end of May and started to snowball at a moderate pace, until the spike in price occurred from November to midway through December. While I don’t exactly know how the interest in Bitcoin raised so much, i would assume it was the slow rise that happened from May to November which starts at 1322 USD and ends (right before the spike) at around 7077 USD. Here's the chart, with the start of the price spike marked:\n\n![sdf.png](https://steemitimages.com/DQmQFRnotLUsRWA8qg1qGboa9LBc1ZfYwJ7E5Au6iZoB3eF/sdf.png)\n\nNow I’ll talk a bit specifically about Bitcoin. Bitcoin is the main cryptocurrency, and also the first one to ever exist. I’ll just be quick because this article is already long enough. In 2008, **Satoshi Nakamoto** published [an article](https://www.mail-archive.com/[email protected]/msg09959.html) in which he introduced the concept of bitcoin. Satoshi Nakamoto’s identity is not known, so they could be a single person or a group of people. The 3rd of January on 2009, the bitcoin network was created and the first block of Bitcoins (50 of them) was mined by none other than it's creator, Satoshi Nakamoto. The first transaction made had a value of 10.000 Bitcoins which were used to indirectly buy… two pizzas. I have the forum post, but I don’t know if I should put it here because the buyer mentions their zip code. If you just want to know how much that was, according to someone else in the thread it was about 41 USD. Ouch.\n\nNow, what have I been talking about every time I said **“mining”**? Well, it’s simple. It’s a way to get Bitcoins, for example, as it can be used with other cryptocurrencies. Mining is when a computer (Which usually has a lot of processing power to make it more effective) is used to solve complex math problems. When users are finished with mining, the first one to finish all of these problems is paid with an amount of bitcoins equal to the current block reward. To know what that means, we’ll have to go back to those math problems I mentioned. See, when you mine Bitcoins, you’re given a set of hash functions, which I mentioned earlier. These hash functions are solved with the purpose of verifying previous transactions in the Blockchain, which is the reason why miners are rewarded with free Bitcoins, as it encourages people to mine and helps with security measures. This set of hash functions is called a block. Now, the **“block reward”** thing. See, Bitcoins are not exactly unlimited. They have a limit to how many can be mined, which is 21 million, and every 210.000 blocks mined the reward for mining one of them will be halved. Starting from 50 on 2009, the block reward is currently 12,5 Bitcoins. So now you can connect the dots. This is the reason why Bitcoin is becoming kind of hazardous, as mining consumes more electricity per year than some countries like Denmark or Ireland.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\n# Summary\nNow, for the short explanation (I hope I did this right):\n\n**Cryptocurrencies** are a type of currency not handled by any country. This also makes them untraceable so you can safely buy coke, I’ll let you guess which type of coke I’m talking about. They’re handled by **Blockchain**, which is like a public ledger that keeps note of every transaction made using them. To use these, you need a **cryptocurrency wallet**, which doesn’t really contain your money per se, but more like **records** of receiving money. To transfer or receive them, you have your **private and public key**. Your **private key** works as a signature for your transactions in the sense that it guarantees that it was you who made said transaction. If someone else got it *__you’d get fucked,__* to put it shortly. Your **public key** is the address people use to send money to you. Cryptocurrencies keep their value due to supply and demand, and they can be mined. This, commonly called **“Bitcoin mining”** is done is by solving a set amount of math problems which are used to verify transactions made in the Blockchain, which uses a large amount of processing power, making mining productive for both parties, the user and network, since the first user, and only the first one to solve all these problems gets a set amount of Bitcoins for it, making a powerful PC almost necessary for this task.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)\n\nSo that’s it. This is my first post, so *__please have mercy on my soul if I did anything particularly wrong__*. If there’s anything I think could be wrong is phrasing, since I’m a native Spanish speaker (I’ll be posting this on Spanish later so if you didn’t understand much, look out for that) and I kinda know English. When making my account, I didn’t really know what type of content I should write, so i´m going to try a few different things. If you liked this kind of informative thing, I’ll definitively be making more articles like this, since I had much more fun than I expected. I hope everything I wrote was understandable.\n\n![Sin título.png](https://steemitimages.com/DQmcVpB2ftEi85T3VjxuZ2FK7TqcMx5f6tmPcVZKtwN6Nk3/Sin%20t%C3%ADtulo.png)",
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