How Bitcoin Works

Bitcoin is a decentralized form of cryptocurrency. Meaning, they are not regulated by a financial institution or government. For example, unlike a traditional bank account, you don’t need a long list like an ID to establish what is known as a bitcoin wallet. The Bitcoin Wallet is the one you use to access your Bitcoin and send Bitcoin to other people.

How to set up an account

You can get a bitcoin wallet from a bitcoin broker like Coinbase. When you open a wallet through a certified broker, you are given a bitcoin address that is a series of numbers and letters, as well as an account number for a bank account and a private key that is a series of numbers and letters, which acts as your password.

How Bitcoin works as an anonymous payment processor

You can do 3 things with Bitcoin, you can make a purchase, send money anonymously to someone or use it as an investment. More and more merchants are using Bitcoin as a means of payment. By using Bitcoin instead of cash, you are basically making those purchases anonymously. The same thing applies with remittances, based on the fact that you do not have to submit a payment to establish a Bitcoin anonymously, basically you can send money to someone else anonymously.

How Bitcoin works as an investment

The price of a bitcoin fluctuates from time to time. To put things in perspective, at the beginning of 2013, the average price of a bitcoin was about $ 400 per bitcoin, but by the end of 2013, the price of bitcoin had risen above $ 1000. This means that if you had 2 bitcoins worth $ 800 at the beginning of 2013 and you saved them as an investment by the end of 2013, those two bitcoins would be worth more than $ 2000 instead of $ 800. Many people save Bitcoin because its price fluctuates.

Bitcoin casino and poker site

Due to the anonymity of Bitcoin, the gambling industry has adopted Bitcoin as a method of payment. Bitcoin casinos and bitcoin poker sites are both coming alive and offering their players to deposit, play with bitcoin at the table and withdraw directly to their bitcoin wallet. This means that there is no tax or possibility for government control. Much like the regular Nevada Casino where you don’t have to register anywhere and all your transactions are anonymous.

How do you send bitcoin

You need 3 things to pay for products and services or send Bitcoin to one person. Your bitcoin address, your personal key and the person’s bitcoin address. From that point on, through your Bitcoin wallet, you keep 3 pieces of information, namely: input, balance and output. Input refers to your address, balance refers to the amount of bitcoin you are going to send, and output refers to the recipient’s address.