Many citizens wonder how the cost of Bitcoin is considered, but it is necessary to note that this process is identical to that used for other currencies or objects. First, let’s take a look at how bitcoin price today for most items are set, using the example of oranges. How much does an orange cost?
Bitcoin: the first trial of decentralized digital currency
Let us try a definition: “Bitcoin designates both an electronic money and a secure and anonymous payment system between individuals. Its infrastructure is decentralized ] and comparable to the BitTorrent file-sharing system . “. But before continuing, let’s ask the fundamental question: why on earth invent new money? So aren’t the dollar, the euro and the yen enough? Very schematically, we can consider that two currents of thought support the creation of new currencies, virtual or not, which are not subject to the supervision of any central bank. On the one hand, we have the libertarians in the movement of the Austrian economic school, which included F. Hayek’s great cantor of liberalism and a worthy heir to Adam Smith, the father of the famous concept of ” invisible hand.
Bitcoin’s ambition, however, is of a completely different scale: it wants to be universal currency allowing to pay for goods in the real world and it must be exchangeable for currencies without being backed by any financial or banking institution. Bitcoin therefore, seeks, in principle, to play in the big leagues, on an equal footing with the dollar and the euro.