Bitcoin is known as the first decentralized digital currency, they are basically coins that can be sent over the internet. 2009 was the year Bitcoin was born. The creator’s name is unknown, but the pseudonym Satoshi Nakamoto is given to this person.
Advantages of Bitcoin.
Bitcoin transactions are done directly from person to person over the internet. There is no need for a bank or clearing house to act as an intermediary. Thanks to this, transaction fees are much lower, they can be used in all countries of the world. Bitcoin accounts cannot be frozen, there are no prerequisites for opening them, and no restrictions. Every day more and more merchants are starting to accept them. With them you can buy anything you want.
How Bitcoin Works.
It is possible to exchange dollars, euros or other currencies into bitcoins. You can buy and sell like any other country’s currency. To keep your bitcoins, you need to store them in something called wallets. These wallets reside on your computer, mobile device, or on third-party websites. Sending bitcoins is very simple. It’s as simple as sending an email. You can buy practically anything with bitcoins.
Bitcoin can be used anonymously to buy any kind of goods. International payments are extremely easy and very cheap. The reason for this is that Bitcoins are not actually tied to any country. They are not subject to any regulation. Small businesses like them because there are no credit card fees involved. There are people who buy bitcoins just for the purpose of investment, expecting them to increase in value.
Ways to acquire bitcoins.
1) Buy on an exchange: People are allowed to buy or sell bitcoins from sites called bitcoin exchanges. They do this by using their countries’ currencies or any other currency they have or like.
2) Transfers: People can simply send bitcoins to each other through their mobile phones, computers or through online platforms. It’s the same as sending cash digitally.
3) Mining: the network is protected by some individuals called miners. They are rewarded regularly for all newly confirmed transactions. These transactions are fully verified and then recorded in what is known as a public transparent ledger. These people 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 invest money in third-party websites, these sites provide all the necessary infrastructure, reducing hardware costs and energy consumption.
Storing and Saving Bitcoins.
These bitcoins are stored in so-called digital wallets. These wallets exist in the cloud or on people’s computers. A wallet is something like a virtual bank account. These wallets allow people to send or receive bitcoins, pay for things, or simply save the 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 software on their computers and wait for long syncing processes. The downside is that the cloud can be hacked and people can lose their bitcoins. However, these sites are very secure.
2) Computer wallet: the advantage of having a computer wallet is that people keep their bitcoins safe from the rest of the internet. The downside is that people can delete them by formatting the computer or due to viruses.
When making a Bitcoin transaction, you do not need to provide the person’s real name. Every single Bitcoin transaction is recorded and is what is known as a public ledger. This log only contains wallet IDs, not people’s names. so basically every transaction is private. People can buy and sell things without being tracked.
Bitcoin created a whole new way to innovate. Bitcoin software is open source, which means anyone can review it. Today’s fact is that Bitcoin is transforming the world’s finances, similar to how the web changed everything about publishing. The concept is brilliant. When everyone has access to the entire Bitcoin global market, new ideas emerge. The reduction of transaction fees is a fact of Bitcoin. Accepting bitcoins is worth everything, plus they are very easy to set up. Fee refunds do not exist. The Bitcoin community will generate additional businesses of all kinds.