Bitomat

Posted in Finance, Accounting and Economics Terms, Total Reads: 376
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Definition: Bitomat

Bitomat was the first bitcoin exchange in Poland .It went online on April4, 2011.The bit coin exchange facilitates users and traders to make deposits into a virtual wallet and place buy or sell orders .The Exchange acts as an escrow for the funds. In August of 2011Bitomat was taken over by Mt. Gox Bitcoin exchange.


Bit coins are one of the many forms of digital currency which was created in 2009 and allows the users to make payments and trade at very low costs. The Circulation and expansion is facilitated by a computer software also known as Bit coin Mining which is programmed to move as geometric series. The bitcoins are generated in such a way that it becomes more and more difficult to mine these over time due to the mechanics of the system, and the total number that can ever be mined is limited to around 21m and hence it limits the impact of monetary inflation or devaluation of the virtual currency.


A bit coin is worth approximately $600 US dollars. There are around $1.9 billion USD worth of bit coins in existence, and It is estimated that $2 billion are more to be created. Bit coins will stop being created around the year 2040 when the number reaches 21m. As of 2014, half of those bit coins have been generated approximately. Also bit coins are forgery-resistant as it is so computationally-intensive to create a bit coin that the costs of manipulating the system far exceed the benefits.

 

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