Bitcoins are known as the first decentralized digital currency, they are basically coins that can be sent via the Internet. 2009 is the year Bitcoin was born. The name of the creator is unknown, but Satoshi Nakamoto alias was given to this person.
The benefits of Bitcoin.
Bitcoin transactions are made directly from person to person through the internet. No bank or clearinghouse is required to act as a middle person. Thanks to this, transaction fees are much lower, they can be used in all countries of the world. Bitcoin accounts cannot be frozen, prerequisites for opening them do not exist, same for limits. Every day more traders are starting to accept them. You can buy whatever you like with them.
How Bitcoin Works
Bitcoin can be exchanged for dollars, euros or other currencies. You can buy and sell it as it was the currency of any other country. To keep your bitcoins, you need to store them in something called a wallet. These wallets are located on your PC, mobile device or third party website. Sending Bitcoin is very easy. It’s as simple as sending an email. You can buy virtually anything with Bitcoin.
Bitcoin can be used anonymously to buy any type of product. International payments are extremely easy and very cheap. This is because Bitcoin is not really tied to any country. They are not subject to any kind of regulation. Small businesses prefer them because there is no credit card fee involved There are some people who buy Bitcoin only for investment purposes, hoping to increase their value.
Ways to earn bitcoin.
1) Buy on Exchange: People are allowed to buy or sell Bitcoin from sites called Bitcoin Exchange. They do this by using the currency of their country or any other currency of their choice.
2) Transfer: Individuals can only send Bitcoin to each other via their mobile phone, computer or online platform. It’s like sending cash digitally.
3) Mining: The network is protected by some people who are called miners. They are regularly rewarded for all newly verified transactions. Thesis transactions are thoroughly verified and then referred to as a public transparent ledger. These individuals compete to mine these bitcoins using computer hardware to solve difficult math problems. Miners invest a lot of money in hardware. Nowadays, there is something called cloud mining. Using cloud mining, miners invest money in third-party websites, which provide all the necessary infrastructure, reducing hardware and energy costs.
Saving and storing bitcoin.
These bitcoins are stored as digital wallets. These wallets exist in the cloud or on human computers. A wallet is something similar to a virtual bank account. These wallets allow people to send or receive bitcoins, pay for things, or simply store bitcoins. Unlike bank accounts, these Bitcoin wallets are never insured by FDIC.
Types of wallets.
1) Cloud Wallet: The advantage of having a cloud wallet is that people do not have to install any software on their computer and do not have to wait for long syncing process. The downside is that the cloud can be hacked and people can lose their bitcoin. Nevertheless, these sites are very secure.
2) Computer Wallet: The advantage of having a computer wallet is that people keep their bitcoins safe from the rest of the internet. The problem is that people can format computers or delete them due to viruses.
When making a bitcoin transaction, there is no need to provide the real name of the person. Every bitcoin transaction is recorded which is known as a public log. This log contains only the wallet ID and no human name So basically every transaction is personal. People can buy and sell things without being tracked.
Bitcoin has established a completely new way of innovation. Bitcoin software is all open source, which means anyone can review it. One of the realities today is that Bitcoin is changing the world economy in the same way that everything about web publishing has changed. The idea is brilliant. When everyone has access to the entire Bitcoin world market, new ideas emerge. Reducing transaction fees is a fact of Bitcoin. There is no cost to accepting Bitcoins, they are also very easy to set up. Charge back does not exist. The Bitcoin community will create all kinds of extra business.