Bitcoin is known as the first decentralized digital currency, they are basically coins that can be sent online. 2009 was the year bitcoin was born. The name of the creator is not known, but this person was given the alias Satoshi Nakamoto.
The benefits of Bitcoin.
Bitcoin transactions are performed directly from person to person via the Internet. There is no need for a bank or clearing house to act as an intermediary. Thanks to that, transaction fees are much lower, they can be used in all countries around the world. Bitcoin accounts cannot be frozen, there are no preconditions for opening them, as well as limits. Every day more and more traders start accepting them. You can buy whatever you want from them.
How Bitcoin works.
It is possible to exchange dollars, euros or other currencies into bitcoin. You can buy and sell like any other country currency. To keep your bitcoins, you need to store them in something called wallets. These wallets are located on your computer, mobile device or third party websites. Sending bitcoin is very easy. It’s as simple as sending an email. With bitcoins you can buy almost anything.
Bitcoin can be used anonymously to buy any type of goods. International payments are extremely simple 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 love them because credit card fees are not included. There are people who buy bitcoins just for the purpose of investing, expecting them to raise their value.
Ways to acquire bitcoin.
1) Buy on the stock exchange: people are allowed to buy or sell bitcoins from sites called bitcoin exchanges. They do this using the currencies of their country or any other currency they have or love.
2) Transfers: people can only 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 provided by some people called miners. They are regularly rewarded for all newly verified transactions. These transactions are fully verified and then recorded in what is known as a public transparent book. These individuals compete in mining these bitcoins, using computer hardware to solve difficult mathematical problems. Miners invest a lot of money in hardware. Today there is something called cloud mining. Using cloud mining, miners only invest money in third-party websites, and those sites provide all the necessary infrastructure, reducing hardware and energy costs.
Storage and storage of bitcoin.
These bitcoins are stored in what are called digital wallets. These wallets exist in the cloud or in 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 just keep bitcoins. Unlike bank accounts, these bitcoin wallets are never insured by the FDIC.
Types of wallets.
1) Cloud Wallet: The advantage of having a wallet in the cloud is that people do not have 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. Still, these sites are very secure.
2) Wallet on the computer: The advantage of having a wallet on the computer is that people keep their bitcoins protected from the rest of the Internet. The downside is that people can delete them by formatting their computers or because of viruses.
When performing a bitcoin transaction, there is no need to specify the real name of the person. Each of the bitcoin transactions that is recorded is what is known as a public diary. This diary contains only the wallet ID, not the names of the people. so basically every transaction is private. People can buy and sell things without tracking.
Bitcoin has established a whole new way of innovation. Bitcoin software is completely open source, which means that anyone can view it. Today’s fact is that bitcoin is transforming world finances much like the web has changed everything about publishing. The concept is brilliant. When everyone has access to the entire global bitcoin market, new ideas emerge. Reducing transaction fees is a fact of bitcoin. Accepting bitcoins costs anything, and they are very easy to set up. There is no refund. The Bitcoin community will create additional businesses of all kinds.