Bitcoin is known as the first decentralized digital currency, they are essentially coins that can be sent over the Internet. 2009 was the year when bitcoin was born. The name of the creator is not known, but he was nicknamed Satoshi Nakamoto.
Advantages of Bitcoin.
Bitcoin transactions are made directly from person to person over the internet. You don’t need a bank or a clearinghouse to act as the middle man. Due to this, transaction fees are very low, they can be used in all countries of the world. Bitcoin accounts cannot be frozen, there are no prerequisites for opening them, same for limits. Every day more and more merchants start accepting them. You can buy anything you want with them.
How Bitcoin Works
It is possible to exchange dollars, euros or other currencies for bitcoin. You can buy and sell like any other country’s currency. To store your bitcoins, you need to store them in something called a wallet. This wallet is located on your computer, mobile device or third party websites. Sending bitcoins is very simple. It’s as simple as sending an email. You can buy almost anything with bitcoins.
Bitcoin can be used anonymously to buy any kind of goods. International payments are extremely easy and very cheap. This is because bitcoins are not actually tied to any country. They do not follow any rules. Small businesses love them because there are no credit card fees. There are people who buy bitcoins for the sole purpose of investing, to increase their value.
Ways to get Bitcoin.
1) Buy on an exchange: people are allowed to buy or sell bitcoins from sites called bitcoin exchanges. They do this using their own country’s currency or any other currency they have or like.
2) Transfers: individuals can simply send bitcoins to each other via their mobile phones, computers or online platforms. It’s the same as sending cash digitally.
3) Mining: the network is maintained by some individuals called miners. They are regularly rewarded for all newly confirmed transactions. Theses transactions are fully audited and then they are recorded in a ledger known as a public transparent ledger. These individuals compete to mine these bitcoins by using computer hardware to solve difficult math problems. Miners invest a lot of money in hardware. Nowadays there is something called cloud mining. Using cloud mining, miners simply deposit money into third-party websites, which provide all the necessary infrastructure, reducing hardware and energy consumption costs.
Storage and storage of bitcoins.
These bitcoins are stored in what are called digital wallets. These wallets exist in the cloud or on people’s computers. A wallet is something similar to a virtual bank account. These wallets allow people to send or receive bitcoins, pay for things, or simply store bitcoins. Unlike bank accounts, these bitcoin wallets are never insured by the FDIC.
Types of wallets.
1) Cloud wallet: the advantage of having a cloud wallet is that people don’t need to install any software on their computers and wait for long synchronization processes. The downside is that the cloud can be hacked and people can lose their bitcoins. Nevertheless, these sites are very safe.
2) Computer wallet: the advantage of having a computer wallet is that people protect their bitcoins from the rest of the internet. The disadvantage is that people can delete them by formatting the computer or due to viruses.
When making a bitcoin transaction, there is no need to provide the person’s real name. Each recorded bitcoin transaction is known as a public log. This log contains only wallet IDs, not people’s names. so basically every transaction is private. People can buy and sell things without being tracked.
Bitcoin has created a whole new way of innovation. Bitcoin software is open source, which means anyone can review it. Today, it is a fact that bitcoin is changing the world of finance in the same way that the internet has changed everything about publishing. The concept is brilliant. When everyone has access to the entire bitcoin global market, new ideas emerge. Reduced transaction fees are a fact of bitcoin. Accepting bitcoins is cost-effective and also very easy to set up. Chargebacks are not available. The Bitcoin community will generate all kinds of additional business.