Many of us have been raised on cash and debit cards, so introducing a new currency into our lives may seem pointless. However, there’s no denying the impact that Bitcoin has made, and with new sites such as bestcryptocurrencyexchanges.net popping up online its easy to see why its becoming one of the most recognised digital currency in recent years.
The reason why Bitcoin has become so popular is due to the benefits it offers. So, if you’re currently sat on the fence as to whether you should adopt this currency or not, then why not consider the following benefits. Sure, it may require some changes, but this is the case for anything revolutionary.
It’s Designed for the Internet Generation
One of the reasons Bitcoin has gained traction in the world of finance is because its designed for a core userbase, those who use the Internet. You may consider this to be a limitation, but when you consider that over 3 billion people use the Internet daily, it makes for a large capture area.
One of the many worries for online users is the use of credit and debit cards. While steps are taken to reduce fraud, Bitcoin just offers that extra sense of security thanks to the encryption process it uses. The currency has proved to be such a hit online, that many users state that they may not even be using a bank account in the future.
The more suspicious of us may think that people want to hide their payment history because they have something to hide, and in some instances, this can be true. However, many online users wish to remain anonymous, as they feel the experience is safer. While there can be some instances when a person does have to disclose certain details, for the most part, Bitcoin allows for a completely discreet presence when making purchases online.
While final transactions are available within blockchains, the personal information of the recipient or sender is never revealed.
There Are Benefits for Online Businesses
One of the major obstacles for any business is the fees associated with payment providers. Even popular services like PayPal can be costly in some instances, but to be able to maintain a strong turnover must be employed.
This isn’t to say that a business should eradicate all current payment solutions, but it’s worthwhile adding Bitcoin as one of your accepted payment methods.
As well as allowing you access to a completely new demographic of customers, you will also be paying much less. The processing fees are paid by the sender, meaning that the business is receiving much more of the amount than if it had used another platform.
Using Bitcoin also ensures that the business is not subjected to unauthorised chargebacks, another hindrance for online businesses, especially those that must send out physical goods in the post.
It Offers Faster Transactions
While there are solutions offered by banks in relation to faster payments, they do come with their own limitations. There are times when those looking to send a payment must wait several days for the larger payment to clear, be it via a wire transfer, or cheque.
Payments can be instantaneous for payments that don’t need to be confirmed by the blockchain. Even if confirmation is needed, it takes a mere ten minutes for the confirmation to take place. Much faster than some of the more conventional payment options.
No Control from Central Government
While we may be burrowing further into the rabbit hole, the fact that Bitcoin has no control from the Central Government means that funds are kept safe. While it may seem like a sinister concept, there have been occurrences have caused concern when it comes to how safe our money really is.
One such incident occurred in Cyprus back in 2013, where the Central Bank wanted to take control of uninsured deposits amounting to $10,000 or more to recapitalise, which caused a great deal of unrest.
This sort of incident can’t happen where Bitcoin is concerned, because the Central Government doesn’t have any control whatsoever. So, while it’s a difficult pill to swallow given that we’ve put so much faith in the banking system in the past, at least there’s an avenue to explore when it comes to ensuring our earnings are kept safe.
A Spanner in the Work for Fraudsters
While we’ve already touched on the safety aspects of Bitcoin, there may still be those who are on the fence as they feel their financial information could be phished. More traditional payment methods require us to enter a series of details, including our credit card number and address details. While safety certificates are put in place, hackers are not so easily swayed, and will continue to work on new algorithms to find flaws in the security.
A Bitcoin transaction uses a completely different process altogether. And don’t require you to enter a slew of information. Instead you are issued with two keys, a public one and private one. The two keys are then amalgamated to create a unique mathematical code that proves the payment came from you.
Of course, common sense still must play a massive part. Just as you wouldn’t give anyone your PIN number, the same applies to your private key.
Bitcoin Is Not Subjected to Inflation
As you already know, there is risk associated with funds that are in control of the Central Government, which means the currency in question can fluctuate. For example, if there is a shortage of funds, then more can be created, devaluing that currency. It also means that businesses must change their prices accordingly to ensure they can keep up with inflation costs.
As Bitcoin was only created to hold a maximum amount of counts, it’s not to be fluctuating. As only 21 million coins will ever be created, this can mean that deflation is more likely.
Once you scratch the surface of Bitcoin, there’s a lot of to behold. It may take some adjusting, but the benefits available when it comes to Bitcoin, it’s an avenue worthy of your consideration.
There’s a bunch of different ways you can keep your Bitcoin or other cryptocurrency safe – but few options are as secure as a high-end hardware wallet.
If you’re relatively new to Bitcoin, you might not fully appreciate how vulnerable your coins can be – so it pays to be fully informed about all the options that are out there. We’ll take a look at what a hardware wallet is, how it works – and some of the most popular devices on the market…
What is a Bitcoin wallet?
As you probably already know, Bitcoins and other cryptocurrencies are made up of a collection of private ‘keys’. However, the particular crypto network only works with client software that manages those keys, allowing users to make transactions.
A ‘wallet’ is one such piece of client software – it provides a pair of keys (one public and one private) so that currency can be accessed – and the algorithms that mean transactions can be carried out across your chosen crypto network.
A hardware wallet is exactly as it sounds – a physical device that does the above.
What exactly does a hardware wallet do?
As you’ll know, there are two types of Bitcoin key, a public one, required to transmit Bitcoin to that wallet – and a private one, required to send or spend your Bitcoin. Most hardware wallets will generate the private key that’s required for a Bitcoin transaction to take place.
A hardware wallet will also chart the transactions executed on the device – although rather than displaying the complex blockchain transaction that’s taken place, the device will display a ‘hash’ – essentially a code that identifies the nature of the transaction and puts it into one particular category.
Some (but not all) wallets display key information on a small screen – a really important feature that means information can stay within the wallet itself. The reason for this is fairly simple – a Bitcoin wallet is extremely difficult, if not impossible to breach. Your computer on the other hand is extremely vulnerable – so, transmit data from your super secure wallet to your fairly insecure computer – and there you go… a vulnerability.
Having a screen means this vulnerability is removed – as keys do not have to be passed from one device to another.
Hardware wallets have an additional security feature – a button – or maybe two.
Where clickable buttons are being phased out elsewhere in tech – they still have an extremely important part to play in Bitcoin wallet security – that’s because they can’t be pressed electronically. For instance, you’re about to confirm a transaction – there’s an outside possibility that this transaction isn’t being performed by you – however, since your hardware wallet and button reside in your hand, you’re the only person who can push the button. Simple – but effective.
Buying a hardware wallet
Keen to find out which is the best hardware wallet? Well, the good news is, it’s not going to take you long to research all the possibilities.
Hardware wallets are, for the time being, a very specialised piece of equipment – and the relatively low popularity of cryptocurrency vs. standard currency means you’re not likely to see them on supermarket shelves anytime soon.
We’ll give you an overview of the 2 most popular products on the market today:
Ledger Nano S
Ledger offer some excellent, tried and tested cryptocurrency products – although by far the most popular is the Ledger Nano S.
To the untrained eye, the Nano S would resemble a USB drive hanging from your bunch of keys – although the contents are likely to be far more valuable (and a lot more difficult to access!)
When you set up a Nano S, you’re required to enter a PIN, consisting of 4 numbers. Enter an incorrect PIN too many times and your wallet is wiped – meaning theft of the device would be extremely unlikely to result in your currency being lost. That said, your Bitcoin isn’t gone forever – the Nano S creates a one-time recovery phrase that is recorded elsewhere at setup – allowing you to recover the wallet if it is lost or stolen.
Building on the already secure concept of physical buttons – the Nano S has two buttons that require simultaneously pressing to authorise any transaction, adding an extra layer of security.
TREZOR were the first company to launch Bitcoin hardware wallets – and they’ve continued to grow their security from day 1 – making them one of the safest choices on the market.
Back up and function is very similar to the Ledger Nano S – with a generated pass phrase that allows for a secure recovery of the wallet’s contents should it be lost or stolen. Physical button presses are also required for transaction authorisations.
2017 saw the first recorded breach of a hardware wallet – and the device in question was a TREZOR. That said, the exploit was extremely difficult to enact – and the company rectified the issue almost immediately after it became apparent – the type of response you’d expect from a company that looks after significant amounts of client currency.
TREZOR devices can be recovered in a number of versatile ways too – including recovery to a number of web and software based wallets – handy if you don’t have another TREZOR to hand.
Where to find hardware wallets
Both the TRAZOR and Ledger Nano S tend to sell very quickly – and since they’re made in limited numbers, you can sometimes be waiting a while before you find a vendor with one in stock. If you’re in the marketplace and see one available – buy quickly – and you’ll avoid lengthy waits before your currency is secure.
General hardware wallet advice
Hardware wallets are not generally considered the best ‘beginner’ option for managing your Bitcoin. That said, it depends what being a beginner means to you – if it’s trading small amounts of cryptocurrency – then the cost and complexity of a hardware wallet might not make sense. However, if ‘starting out’ with Bitcoin means buying a small fortune’s worth, then buying and understanding a hardware wallet might be a good step.
Safety often means complexity – and this is especially true of hardware wallets – but understand them and work with their complex security and you’re unlikely to find a safer option.
Recent gambling legislature in many territories and the moral ambiguity of the industry has created intense debate about the ethics surrounding online gambling, Easy slots online slots website is very high on ethics. In the United States wire transactions relating to gambling are outlawed, meaning that the online industries fail to permeate such a vast area of target audience.
Despite federal law, four states including Delaware and New York allow online gambling. However, with such a vast market going undiscovered, betting operators are scratching their heads searching for ways round these strict laws.
Crypto currency is just one of the methods being used by stealthy betting companies to get around the laws that many territories set. Although US legislature outlaws online gambling they only stipulate transactions for US currency or actual currency that is used by the global bank. Bitcoin, is not an official currency, despite its meteoric rise in value.
Many gambling sites are taking advantage of the bitcoin loophole and gaining access to a market that even the big names in the industry are yet to conquer. Sites like Fortune Jack and Primedice are leading the way in the industry but the question remains above how long they will be able to enjoy their freedom in the market.
It’s thought that there’ll be two potential outcomes;
The first and most likely scenario would be for the American government to take a deeper luck into the bitcoin economy and the markets it’s populating. Its popularity is quite often used for more covert financial dealings. Often Bitcoin is used across the Dark Web to buy drugs and other illegal items.
The rise of bitcoin in the US online gambling market could expand faster than the government control, creating an irreversible beast, similar to the drug trade where there’s nothing that can be done to stop it. If the Government can pass a bill to include Bitcoin into anti-gambling law then they may succeed in reclaiming the market.
This method may lead to the US market rethinking their stance on online gambling with bitcoin acting as the litmus test for the revenues that can be created. Bitcoin is often hard to quantify though as it’s not an official currency, it exists in an online stock market where nobody in particular holds the keys. Nevertheless, I’m sure the power and might of the US will find a way to stifle or to bend Bitcoin gambling into their favour.
As legitimate gambling operators across the world hone their crafts in land-based and online casino betting they will take their expertise of the market and invest heavily in bitcoin gambling in the territories that possess the grey areas. Because Bitcoin is a decentralised digital commodity it’s hard for the government to have any say on its development.
Many gambling operators will flood underground online markets in America and China hoping to gain a slice of the pie and huge segments of under utilised demographics. This will create a gold rush in the market and in turn will most likely reduce the worth of Bitcoin.
While the US market will be capitalised on by the front runners and many more after it, it will most likely establish Bitcoin as a credible cryptocurrency that could shake the great economies of the world.
The power of Bitcoin
Owing to the decentralised nature of Bitcoin it’s impossible for governments to gain a foothold on the currency unless they embrace it fully. It’s said that there’s nearly 6 million people currently using Bitcoin across the world with its popularity only rising. Well established figures both in the government and from banks like JP Morgan have expressed their distaste for Bitcoin with many describing it as a Ponzi scheme for the Government.
It’s clear that the authorities will be closely monitoring the volatile cryptocurrency and that they are on the ropes. For now, Bitcoins volatility is just waiting to be taken advantage of, will we see a revolution in industry in a similar way to what the online boom brought. Bitcoin is the next frontier on online gambling.
You’re likely to be aware by now that Bitcoin is an exciting business prospect – but what is it exactly that everyone’s so worked up about?
Well, the resurgence in buzz is actually more around ‘blockchain’ technology, the foundation principle that the Bitcoin currency is built on. A Google search for a quick 100-word overview of how a blockchain works has the potential to lead you down a 2-day rabbit hole as you strive to understand increasingly complex terms – so we’ve broken it down using some familiar examples.
Get ready to understand how blockchain technology has the potential to fundamentally change the world…
A distributed ledger
In 2008, the mysterious and elusive person (or potentially group of people) going by the name Satoshi Nakamoto defined how Bitcoin would work – and in doing so, created blockchain architecture as we now know it.
Imagine you’re creating a spreadsheet that needs to be updated by a team of people. You’ve got two options, for arguments sake we’ll say the first option is creating an Excel sheet on your own PC. You enter your information then send it to the next person in your team via email.
To do so you attach a copy. When they receive it, they download it, edit it, attach it again and send it on to the next person in the team. By the time it’s been around 8 people in your team, there are 8 copies and no record of who’s made which changes – and you’ve had to wait for it to be returned.
Effectively, this is how banks maintain their accounts and transfers now. They make a change, prevent any other changes being made – then inform the receiving account. When the transaction is confirmed, both accounts are amended and available to access again.
So, if this first option is like creating and sharing a spreadsheet in 2001, imagine a blockchain distributed ledger as the 2017+ way of doing things.
Rather than creating a spreadsheet locally, you use a shared system like Google Sheets. You and your full team have access to it at the same time. Make an entry and it can be seen by your team in real time. There is only a single version of the spreadsheet, viewable and editable by all – and every edit can be attributed to the person making it.
Now, the Google Sheets example is okay – but it doesn’t really do the ‘distributed’ part of blockchain technology the justice it deserves. Like this example, a blockchain cannot be controlled by any one person – but what’s more, there is no single point of failure.
That’s because every ‘node’ (a computer that is powerful enough to make changes or additions to the blockchain) actually copies the entire database at the same time as a change is being made. So, back to the example – not only are your team editing the sheet, they’re aware of every change that’s ever been made, because they’re taking backups every ten minutes.
Therefore, when a change is made, it’s referenced against all this ‘backup’ verification information right across the network. This means there is zero chance of missed transactions, human errors, machine errors or fraudulent transactions.
It’s a big claim, suggesting a means of administering money has zero chance of falling foul to fraud – but in the case of Bitcoin and its underpinning technology, it’s so far proved to be true – and it’s primarily because of the transparency of the architecture.
Although people suggest Bitcoin is anonymous (hence the media hype about it being the criminal’s currency of choice) it’s actually not. Every transaction is logged and can be viewed by someone who understands what they’re doing – being as though the entire blockchain is copied and updated every ten minutes by the multitude of node computers that support the system.
Where Bitcoin fraud does appear in the media, the issues are never to do with the underlying technology – and always down to human error handling the unique code that represents the currency.
In theory (and it is a far-fetched theory) it would be possible to alter or override the entire network – although experts suggest this level of computing power is unobtainable. Not only is the power needed out of our hands currently – but taking control of a blockchain would render the system worthless – akin to completely destroying a shop in an effort to secure a credit note that can only be spent there.
Nodes and mining
The node computers referenced don’t just keep the blockchain alive, they grow it. Nodes are extremely powerful machines – and they’re used to add transactions to the ledger.
This process is referred to as ‘mining’ – essentially because taking part in the verification process has the potential to reap Bitcoins (or the other cryptocurrency that’s underpinned by the system) as a reward for solving the complex computational task for building these ‘blocks’ of transactions that make up the blockchain.
Free from centralised control
The nodes that are used are engaged in maintaining and growing the blockchain voluntarily – and anyone (with the equipment and ability to power it) can take part. Because of this, the system is truly ‘decentralised’ – i.e. free from the control of any government or organisation.
This concept of decentralised administration is one of the things that excites people so much about the potential of blockchain technology. There are millions of potential uses that remove a middleman from any transaction – it’s already being used experimentally to administer the sale of diamonds around the world – and some countries are using it as an underpinning for their land registry records.
A new level of network
Essentially, a blockchain creates a new level to the internet – a type of connectivity and processing that was unimaginable in the early days. Every time blockchain technology is used, it goes to further prove how robust and secure the system is.
The technology isn’t quite there yet – but it’s not far away. Blockchain tech could revolutionise the way we do a great number of things, file storage, auditing, the finance markets, personal identity management – even voting for our governments and leaders.
Despite the success of Bitcoin and its worldwide popularity, there are still people who are sceptical and criticises the system. As with any system, especially a digital one, there are issues and bugs and people who don’t trust it. We like to see things from all sides, so today we are looking at some of the criticisms that people have against Bitcoin.
Cryptocurrencies can be lost and then it’s gone forever. Malware or data loss can cause the loss of your cryptocurrency. Once you lose a wallet, that currency is gone forever with no way to get it back. If someone else were to find it, they won’t be able to use it either.
Some people have called cryptocurrencies pyramid schemes. One of the big criticisms is that cryptocurrencies like Bitcoin is like a pyramid scheme or a bubble. This is based on the fact that this type of currency is invisible and actually has no value. The only value it has is that which a person is willing to give it.
Bitcoin is not accepted as a mainstream currency. More and more businesses are accepting Bitcoin as a payment method, but it is a far way from being mainstream. There are several criteria that it must meet before it can become mainstream. With the limit of 21 million Bitcoins, it may not even be worth the effort.
National governments are cautious. The reason for the caution is the lack of centralization and control. The system was built with the purpose of being decentralised. However, this is a criticism for some because there is no control and it could influence financial security. It is just a bit too mysterious to trust.
Basically, people have different opinions and different ideas about Bitcoin. Those who use it seem to trust it and enjoy it. Those who are cautious and suspicions of it will probably never use it. So, there is weight on the pro and the con side. To each his own.
Bitcoin is a cryptocurrency that seems to have a type of mystique around it. Not only does no-one know who developed it, but the system also feels like it is a ghost. Things happen fast and effective and it’s done. So, today we want to share some facts about Bitcoin. Most people know a little bit about it and others know almost nothing. So, here goes.
The developer is anonymous
No-one knows who developed the Bitcoin system and software. All we know is that it was released by Satoshi Nakamoto. We don’t even know if it is one person or a group.
It is used for illegal transactions
Because of the anonymity of transactions through Bitcoin, people have ceased the opportunity to make illegal transactions through this system. It is practically impossible to know who sent you the Bitcoins because the addresses given are just a string of characters.
There is a limit to Bitcoins
Bitcoins are not limitless. There is a 21 million dollar limit which means that in a few years, there will be no more Bitcoins to buy and sell. It gets harder and harder to mine Bitcoins the closer it gets to this limit.
The first purchase was pizza
The first thing that was ever bought with Bitcoins was pizza. It was probably a trial transaction and it worked. The pizza cost $25 and was equivalent to 10 000 Bitcoins.
The FBI owns a lot of Bitcoins
The FBI shut down operations at the Silk Road and confiscated all the assets of the owner. Part of these assets was a whole lot of Bitcoins. It is said that they probably have a wallet of about $120 million dollars in Bitcoins. This makes the FBI one of the wealthiest Bitcoin owners.
Bitcoins have a detailed history
The path of Bitcoins is tracked and its history is set in stone. That means that you cannot fake or replicate it. This is partly the reason why it is a secure way to do transactions.
There are many more fascinating facts about Bitcoins, however, we need to stick with these few. Share your favourite Bitcoin facts with us and we will put together another interesting facts article.
Talk of Bitcoin and other ‘cryptocurrencies’ is everywhere – but it can be difficult separating fact from opinion.
If you search any forum or social media platform and you’ll find wildly different recommendations about what to buy, where to buy it and how it works. We’ll cut through those foggy opinions and tech jargon to explain the following:
- What Bitcoin and other cryptocurrencies are
- How they work
- How you can buy them
- Some of the benefits and risks involved
Whether you’re looking to invest – or you’re just interested in the what the future of currency might look like, we’ll lend a hand…
What is Bitcoin?
Bitcoin is the most commonly known ‘cryptocurrency’ – a type of digital currency that is built on cryptographic codes and a decentralised ledger called the ‘blockchain’.
This blockchain is spread across powerful computers around the globe. The individuals and companies who own these computers use them to ‘mine’ the currency – essentially cracking difficult codes and establishing security throughout the chain to create the digital units.
The way cryptocurrencies are created mean there can only ever be a finite number – there are around 16 million Bitcoins in circulation out of a possible 21 million.
Why do cryptocurrencies exist?
It’s important to understand that unlike physical currency, cryptocurrencies are not issued by governments – which means they are not and cannot be controlled or have fees levied upon it by those governments or central banks.
Because of this, Bitcoin and its peers are often the currency of choice for people who want to remain more anonymous online – it’s often reported that these people tend to be criminals – and while there’s an obvious preference for something close to anonymity for those engaging in illegal transactions, the majority of cryptocurrency buyers see investment value in an alternative approach to currency.
How can I buy Bitcoin?
The process we’re about to explain isn’t unique to Bitcoin and, depending on which broker you use, could extend to virtually any other cryptocurrency.
- Find and create a Bitcoin Wallet
Because Bitcoin has no physical form you need a digital ‘wallet’ in which the code will be held. There are 5 different kinds of wallet you can create:
- Desktop – A desktop wallet involves downloading a large piece of software that holds your Bitcoin on your computer. Not normally a good option for beginners. Check out: Bitcoin Core, Multibit and Armory for some trusted and established options.
- Mobile – Similar to a desktop wallet but a smaller piece of software that holds your Bitcoin on a mobile device. Mycelium, Xapo and Wirex are reputable mobile options.
- Online – The fact that online wallets mean you don’t hold your currency in person can raise some security issues, but this is generally made up for in their ease of use and speed, making online wallets a good beginner option. info is one of those most popular with 8 million wallets, although BitGo’s security measures also make it a popular choice. You can also check out this guide should you be looking to purchase Bitcoin in the UAE – Official Guide about How to buy Bitcoin in UAE
- Hardware – Hardware wallet providers offer a physical device that allows super safe offline storage of large quantities of Bitcoin. KeepKey, Trezor and Ledger Nano provide sleek and secure solutions.
- Paper – A paper wallet provider allows you to print your Bitcoin on to paper, essentially creating a kind of voucher. This is both safe – as it’s offline – and dangerous because it can be destroyed or lost! BitcoinPaperWallet and BitAddress are both simple and reputable paper solutions.
All options have pros and cons. People often start out online – progressing to hardware or paper based wallets further down the line.
- Think security
Whichever wallet provider you opt for, setting up your security measures should be your next step. This is most important when you’re working with any wallet that requires an active internet connection – a potential weak point with hackers and malware programs might have an opportunity to exploit your exposure.
For online wallets, make sure you have two-factor authentication set up on the account.
- Choose a broker
Your next step is to find a broker from whom you can purchase your Bitcoin. Essentially, brokers turn your real credit or debit card money into your chosen cryptocurrency – it’s useful to think of them like a Bureau de Change – they don’t produce the money – they just facilitate the exchange.
As of September 2017, one Bitcoin is valued at around £2885/$3900 – so you might be pleased to hear that brokers are happy to deal in fractions of coins too. Since there’s no physical element to a Bitcoin amount – these can be low – 0.0001 Bitcoin is a perfectly reasonable transaction to make.
It’s important to understand that digital currency comes with potential security issues – and brokers will do their utmost to ensure you and the currency is safe. This will often mean going through significant identification checks – so expect to be uploading pictures of your passport or driving licence to prove who you are.
- Ready to buy!
You’re set up and secure – so the next thing to do is decide how you’d like to spend your money. When you spend your physical currency, you’ll be rewarded with the appropriate amount of Bitcoin in return – and it’ll come to you as a lengthy indecipherable code. Don’t worry if transactions take some time – this can just mean that money being transferred internationally.
You might find that some online wallets that also offer a brokerage service don’t actual reveal the code to you – and that’s fine – you’re essentially trusting the broker in the same way you would your bank.
You’ll now be able to check your balance at any time – usually against some indication of the current trading value of the currency.
- The next move is yours…
The next step in Bitcoin ownership is entirely up to you! If you’re buying Bitcoin with the express idea of spending it then you’re now free to do so. Alternatively, you might want to sit on your digital currency and see how it performs against more familiar options. Or you could look to invest, if you do plan to go down this route then take a look at the mineweb.net Bitcoin IRA investment guide.
In 2010, when Bitcoin was in it’s infancy, a developer spent 10,000 (at the time worth very little) on 2 pizzas. The same 10,000 Bitcoin would now be worth around £29 million pounds. We can’t tell you how to handle your investment – but just be aware, Bitcoin and other cryptocurrencies can fluctuate massively – so seek professional advice before you invest in pizzas…
Bitcoin offers several good reasons why it should be used for transactions. Its features make digital trading and transactions a lot easier and simpler than other forms of transactions. You can perform multiple and different types of transactions through Bitcoin. It has some similarities to other cryptocurrencies, but they don’t all have exactly the same features. Here are a few benefits of using Bitcoin for transaction.
It is secure – Cryptocurrencies work with cryptography. Each user has a specific private key that only that person can use. The cryptography and the numbers system on which the Bitcoin system is based, is basically impenetrable.
It cannot be reversed – Once a transaction has been confirmed and the money has been sent, it’s all over. There is no way to reverse the transaction or get your money back, There is no safety net when it comes to cryptocurrencies. No-one has the authority or access to the system to reverse a transaction and that includes your bank, your miner, and the president. So, be sure that you’re sending money to a legitimate place.
It is fast – Whether you’re sending money to a person sitting next to you or someone all the way on the other side of the world, your transaction will be confirmed within a matter of minutes. Bitcoin transactions happen fast and they go all over the world. The whole thing is done through computers, so physical location has no impact on the speed of the confirmation.
It is free to use – Bitcoin is basically software through which you send and receive Bitcoins. The software is open source and available to anyone who wants to use it. You simply download the software and start sending and receiving Bitcoins. You don’t need permission from anyone and no-one can stop you or check up on you.
Most people use online banking and use their mobile devices to bank from anywhere. Bitcoin offers the same basic service bit with less complexity. So, if you are looking for faster and more effective, Bitcoin may just be what you’re looking for.
Bitcoin is a rising star in the digital landscape today, despite only being created in 2008 many people all over the world now use it. Bitcoin grew in popularity so quickly that many people simply missed the opportunity to learn about it.
Getting access to Bitcoin is actually very easy but it wouldn’t do you much good if you don’t know or how it works. Thankfully we can help you there with our introductory guide to Bitcoin!
So What Is Bitcoin?
Bitcoin is a virtual currency, described on its website as an “open source P2P money” by downloading a Bitcoin wallet onto your computer you have access to trading and holding Bitcoin.
Unusually the creator behind Bitcoin is not exactly known, although people have come forward claiming to be the creator.
What is known is that a person or persons using the name Satoshi Nakamoto was behind the creation of Bitcoin. Whether this is a single person or a group of programmers is still a mystery and one which for now is unlikely to be solved.
Despite information being published about Bitcoin in 2008 it actually didn’t become available till early 2009 on January the 3rd. Bitcoin is open source software and is the first decentralized digital currency available.
How Does Bitcoin Work?
While the mystery behind Bitcoin and its creation is interesting, you’re probably more concerned about how you can use it, aren’t you? Thankfully Bitcoin is actually very simple and easy to use and you don’t need to be overly tech savvy either.
Once you’ve downloaded your Bitcoin wallet, you will be able to buy Bitcoins using real money, these can be purchased through a separate company or other Bitcoin users could sell their Bitcoins to you.
Buyers can also place orders for Bitcoins from other users and trade them with each other, this is very similar to how trading stocks works.
Buying or trading Bitcoins is known as a Blockchain, these blocks are an essential part of how Bitcoin works. Before each payment or trade is verified the block will verify the details to the peer to peer network for validation.
This way users can ensure they aren’t scammed and it helps Bitcoin users trust the Bitcoin platform. So that’s basically how Bitcoin works, you can make payments and trades almost instantly and transactions and accounts are not tied to your real identity giving you a level of anonymity not available elsewhere.
Buying With Bitcoin
The one thing everyone wants to know about Bitcoin is what they can buy with it and how exactly they go about it. Now Bitcoin isn’t excepted everywhere and it’s highly likely you won’t be able to go down to your local supermarket and use them to buy your weekly shopping.
At least not just yet, but Bitcoin is being added as a payment method to more and more outlets so who knows in the future it might be possible. Bitcoin, however, does have a big online presence and a number of websites utilize it as a payment method.
The online travel agents Expedia, for example, accept Bitcoin and Shopify online stores can also accept it as a payment method. Statistics vary but easily over 100,000 outlets of various kinds do accept Bitcoin as a payment method.
When it comes to using them to purchase something the system is a little more unusual. To purchase something with Bitcoins you send your private key to the outlet, they would then scan the key and decode it.
During all this, the transaction would be broadcast to other network participants and then once the mining process is completed (usually within 10 minutes) the transaction is completed.
Breaking Down The Jargon
Ok, there’s probably a few terms you didn’t quite understand there, don’t worry we’ll go through them now. Bitcoin is surprisingly simple but that doesn’t mean there is a learning curve to it, understanding how everything works isn’t 100% necessary but while you’re learning the basics it’s best to stick to smaller transactions.
Let’s take a look at some of the terms you need to know about.
Mining: Mining is the process which completes a transaction, it basically adds transaction details to a block. Effectively it is a record-keeping ledger, however, it is completed by other people and they will receive payment once the mining is completed.
Transaction Fees: Transaction fees aren’t compulsory in Bitcoin however if you offer a transaction fee you will attract more miners which means your transaction will be processed faster.
Private Key: A private key is needed in order to spend Bitcoins, it is connected to your Bitcoin address and to your virtual wallet. Therefore, you can have multiple private keys and some Bitcoin users would even suggest that you do. Your private key is a series of 256 numbers which are auto-generated.
Addresses: A Bitcoin address is what you need to give someone if they are paying you in Bitcoins. This isn’t the same as your email or home addresses it is limited just to Bitcoin and each transaction, every time you are paid in Bitcoin you’ll use a different address.
That’s some of the main key terms you need to know about. When it comes to Bitcoin the best way to learn is to just jump in and use the platform yourself. However, remember to start off with small transactions at first till you’re confident.
Are There Dangers?
Nothing is without risk and Bitcoin does have some dangers that new users need to be aware of. Hacking and scams are two of the most common dangers Bitcoin users face and they are not always easy to identify or prevent.
Cyber theft is a crime that has been on the rise for some time and as the popularity of Bitcoin rises more dangers are likely to reveal themselves. However, that doesn’t mean you should be put off from using Bitcoin there’s an element of risk with all things and the benefits of Bitcoin are too good to ignore.
Technology these days have surely gone far already. People do not settle for the things that are done usually and they tend to go for more convenience. One of the best examples of surpassing technology is the mode of payment. These days, going cashless is very common just like the usage of Bitcoin. Which has also become of one of the most popular ways to make money online fast through mining and trading.
Bitcoin is a digital form of payment where people who are transacting avoid a middle person. The exchange of payment is direct already. Bitcoin is used in different industries these days such as mining and many others. It is also used as a form of payment for goods and services since there are a lot of merchants who accept Bitcoin already.
Since Bitcoin has become famous, here are some facts that you might want to know in case someday you might want to use it.
Advantages of Using Bitcoin
The first advantage of using Bitcoin is the fact that there are no third party interruptions. This means that banks or the like cannot interrupt as transactions are ongoing because the transactions are between two individuals.
Moreover, the usage of Bitcoins can be done in different countries. So, the possibility to transact is there but since there are no governments that are regulating the trade, the fees are standard and low as well. This means that there are uniform fees at a low cost and this could be a great advantage to people who want to travel in different places.
In connection with the statement mentioned above, transactions for Bitcoins are not taxed especially when you purchase.
Lastly, with Bitcoin, you can always go mobile as long as you have an internet connection. So, you can purchase goods and services with your Bitcoins with the use of any mobile phone or device that is connected to the internet. In comparison with other modes of payment wherein you have to personally transact. Also, you can be anonymous with Bitcoin since you do not have to provide your personal information.
Steps On How to Use Bitcoin
If you are now interested with Bitcoin, here are some easy ways to use them.
Since you want to start with Bitcoin, it is very important that you buy some first so that you can start right away. There are so many ways on how to purchase Bitcoin. Good example of such includes buying some online or even personally buying it from somebody you know who has Bitcoin. Moreover, there are other ways on how to have your initial set of Bitcoins, all you have to do is to do some research and go for the most convenient way of buying.
The next thing that you have to do is to have your own wallet. In reality, your purchased bitcoins can be stored when you have created the account that you have made in purchasing. But since everything is digital even Bitcoins can be stolen by hacking, so the safest way to store them is through a wallet. There are so many kinds of wallets to choose from such as paper wallets, mobile ones, and web wallets. Just choose the one that makes you feel convenient.
Lastly, you have to create your own Bitcoin address. This address is just like your e-mail address where you want to receive and send Bitcoins. The great thing about this its anonymity.
The usage of Bitcoin is safe and convenient for everyone who has it. It is good to explore different areas so that you will not just settle for the usual. Using Bitcoin has so many advantages that people all over the world should never miss.