Bitcoins are a decentralized form of cryptocurrency. This means that they are not regulated by a financial institution or government. As such, unlike a traditional bank account, you do not need a long list of paperwork such as an ID to establish what is known as a bitcoin wallet. A bitcoin wallet is what you will use to access your bitcoins and to send bitcoins to other individuals.
How to set up an account
You can get a Bitcoin wallet from a bitcoin broker such as Coinbase. When you open a wallet through a certified broker, you get a bitcoin address that is a string of numbers and letters, similar to a bank account number and a private key that is also a string of numbers and letters, which serve as your password.
How Bitcoin works as an anonymous payment processor
With bitcoins you can do 3 things, you can make a purchase, send money anonymously to someone or use it as an investment. More and more traders are accepting bitcoin as a form of payment. By using bitcoin instead of cash, you are essentially buying anonymously. The same thing applies to sending money, based on the fact that you don’t have to submit a mountain of payments to establish bitcoin anonymously, you can basically send money anonymously to someone else.
How Bitcoin works as an investment
The price of bitcoin varies from time to time. Just to put things in perspective, back in early 2013, the average price of bitcoin was approximately $ 400 per bitcoin, but by the end of 2013, the price of bitcoin had risen to over $ 1,000. This meant that if you had 2 bitcoins worth $ 800 in early 2013 and stored them as an investment until the end of 2013, those two bitcoins would be worth over $ 2,000 instead of $ 800. Many people store bitcoins due to the fact that their value varies.
Bitcoin casino and poker sites
Due to the anonymity of bitcoin, the gambling industry has adopted bitcoin as a method of payment. Both bitcoin casinos and bitcoin poker sites come to life and offer their players to make deposits, play bitcoin at tables and withdraw directly into their bitcoin wallet. This means that there are no taxes or opportunities for state control. Much like a regular casino in Nevada where you don’t have to register anywhere and all your transactions are anonymous.
How you send Bitcoin
To pay for goods and services or send bitcoin to an individual, you need 3 things. Your bitcoin address, your private key and the bitcoin address of the individual. From that moment, through your bitcoin wallet, you will insert 3 pieces of information, and these are: entry, balance and exit. Input refers to your address, balance refers to the amount of bitcoin you will send, and output is the recipient’s address.