Bitcoin is known as the first decentralized digital currency, basically it is coins that can be sent over the internet. 2009 was the year that Bitcoin was born. The name of the creator is unknown, however this person was given the alias Satoshi Nakamoto.
Bitcoin advantages.
Bitcoin transactions are made 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 that, the transaction fees are much lower, it can be used in all countries of the world. Bitcoin accounts cannot be frozen, there are no prerequisites to open them, not even for limits. Every day more merchants begin to accept them. You can buy whatever you want with them.
How Bitcoin works.
It is possible to change dollars, euros or other currencies to bitcoin. You can buy and sell just like any other country’s currency. To keep your bitcoins, you need to store them in something called wallets. These wallets are found on your PC, mobile device or on third party websites. Sending bitcoin is very simple. It’s as simple as sending an email. You can buy practically anything with bitcoins.
Why Bitcoin?
Bitcoin can be used anonymously to buy any type of merchandise. International payments are extremely easy and very cheap. The reason for this is that bitcoins are not really tied to any country. They are not subject to any type of regulation. Small businesses love them because there are no credit card fees involved. There are people who buy bitcoins for investment purposes only, hoping that they will increase in value.
Ways to Acquire Bitcoins.
1) Buy on an exchange: People can buy or sell bitcoins on sites called bitcoin exchanges. They do this using their country’s currencies or any other currency they have or like.
2) Transfers: People can simply send bitcoins to each other using their mobile phones, computers, or online platforms. It is the same as sending cash digitally.
3) Mining: the network is secured by 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 transparent public ledger. These individuals compete to mine these bitcoins, using computer hardware to solve difficult math problems. Miners invest a lot of money in hardware. Today, there is something called cloud mining. By using cloud mining, miners only invest money on third-party websites, these sites provide all the required infrastructure, thus reducing hardware and energy consumption expenses.
Store and save bitcoins.
These bitcoins are stored in what are called digital wallets. These wallets exist in the cloud or on people’s computers. A wallet is somewhat similar to a virtual bank account. These wallets allow people to send or receive bitcoins, pay for things, or just keep the bitcoins. Unlike bank accounts, these bitcoin wallets are never FDIC insured.
Types of portfolios.
1) Cloud Wallet – The advantage of having a cloud wallet is that people do not need 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 safe.
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 the computer or due to viruses.
Bitcoin anonymity.
When making a bitcoin transaction, it is not necessary to provide the real name of the person. Each of the bitcoin transactions that are recorded is what is known as a public record. This record contains only wallet IDs and no names of people. so basically every transaction is private. People can buy and sell things without being tracked.
bitcoin innovation.
Bitcoin established a whole new form of innovation. Bitcoin software is open source, which means anyone can review it. A current 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 global bitcoin market, new ideas appear. Transaction fee reductions are a given of bitcoin. Accepting bitcoins costs nothing, plus they are very easy to set up. Chargebacks do not exist. The bitcoin community will generate additional business of all kinds.