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 nickname Satoshi Nakamoto was given to this man.
Advantages 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. Due to this, transaction fees are much lower, they can be used in all countries around the world. Bitcoin accounts cannot be frozen, there are no prerequisites for opening them, the same for the limits. Every day more and more traders start accepting them. You can buy everything 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 currency in the country. To store your bitcoins, you need to store them in something called wallets. These wallets are located 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 purchase any type of product. 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 love them because there are no credit card fees included. There are people who buy bitcoins just for investment, expecting them to increase in value.
Ways to acquire bitcoins.
1) Buy on the exchange: people have the right 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 like.
2) Translations: people can simply send bitcoins to each other through their mobile phones, computers or through online platforms. This is the same as sending cash digitally.
3) Mining: The network is protected by some people 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 register. These people compete to dig up these bitcoins, using computer hardware to solve difficult math problems. Miners invest a lot of money in hardware. Nowadays there is something called cloud digging. Using cloud mining, miners simply invest money in third-party websites, these sites provide all the necessary infrastructure, reducing the cost of hardware and energy consumption.
Bitcoin storage and saving.
These bitcoins are stored in so-called digital wallets. These wallets exist in the cloud or in people’s computers. The wallet is something like a virtual bank account. These wallets allow people to send or receive bitcoins, pay for things or just save bitcoins. Unlike bank accounts, these bitcoin portfolios are never insured by the FDIC.
Types of wallets.
1) Cloud Wallet: The advantage of a cloud wallet 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. However, these sites are very secure.
2) Computer wallet: The advantage of a computer wallet is that people keep their bitcoins protected 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. Each of the bitcoin transactions that is recorded is what is known as a public diary. This log contains only wallet IDs, not people names. so essentially every transaction is private. People can buy and sell things without being tracked.
Bitcoin has created a whole new way of innovation. All bitcoin software is open source, which means anyone can view it. Nowadays, it is a fact that bitcoin is transforming global finance, just as the web has changed everything in publishing. The concept is brilliant. When everyone has access to the entire global bitcoin market, new ideas emerge. The reduction of transaction fees is a fact for bitcoin. Accepting bitcoins costs everything, and they are very easy to set up. There is no refund. The Bitcoin community will generate additional businesses of all kinds.