Bitcoin: All You Need to Know

Today, like every other industry, the financial industry is seeing the development. The development in the form of digital currencies that came into existence three years back and revolutionized the financial world. There are plenty of crypto currencies that exist electronically, including Bitcoin. It is a most popular digital currency in which every businessman or an individual want to invest. However, there are numerous things or facts that individuals don’t know about this cryptocurrency. So to make people informed, here is a blog post that clears the smokescreen of the Bitcoin. Take a look.

What is Bitcoin?

Created by developers, Bitcoin is a cryptocurrency used to transfer the funds. It is a first peer-to-peer decentralized payment network which is expanding instantly and making the goods and services payment easy.

Who developed Bitcoin?

Invented by Satoshi Nakamoto in 2008, Bitcoin is a first decentralized digital currency. He shared the idea behind this currency on PDF (white paper) and explained how it will work. Without disclosing his identity, Satoshi explained that Bitcoin will be mined on computer software, recorded in a public ledger, and transferred directly into the users account. Then, later in 2010, he left the Bitcoin commodity and leave it in the hands of developers.

Why Bitcoin is so special?

The main reason behind Bitcoin being so special is that it allows the users to receive and send bitcoins without the involvement of third party. However, in other payment methods, such as debit and credit card payments, an individual has to depend on third parties like banks.

Every bitcoin transaction is recorded in a distributed public ledger, known as bitcoin blockchain technology. The information on the blockchain is permanent and it can’t be deleted or edited. This simply means that every transaction has a proof of transaction. So double spending has almost zero chances.

What do you mean by decentralized currency?

Decentralized currency means a currency that does not have any government, group, or individual who can have a hold over it. Hence, it makes Bitcoin a universal currency that can be spent and received in the form of payment anywhere in the world.

It is a unique concept that is free from the geographical boundaries and that’s why known as the internet money.

Many countries are not able to understand Bitcoin and other cryptocurrencies, due to the lack of regulations. However, countries like Japan is recognizing Bitcoin as a currency.

Is Bitcoin Anonymous?

No. It is a myth. To make anonymous transactions is pretty much difficult with Bitcoin. As the system is getting updated, most of the bitcoin service providers are implementing KYC/AML regulations.

KYC/AML stands for Know Your Customers/Anti-Money Laundering. To trace Bitcoins is easy. Bitcoins are received in the form of payment, donated, and also received from bitcoin exchanges. As each Bitcoin transaction is recorded in a public ledger, then it is easy to trace the Bitcoin status.

How to Use Bitcoins?

Some invest Bitcoins and use them for investment purposes and others to do the international money transfer. As Bitcoin is the currency of the internet, so it exists electronically in Bitcoin wallets. There are different types of Bitcoin wallets, including mobile, desktop, web-based/online, paper, and hardware wallet.

You can make the payments by sending Bitcoins from the wallets. At one time, you can have a lot of Bitcoin wallets and addresses (receive money from others).

How Can I Get Bitcoins?

You can get Bitcoins through three ways – mine, buy, or work for Bitcoins.

Mining

In the past, Bitcoin Mining was very profitable. However, at present, it is no more cost effective for an individual. For mining, one need to buy specialized equipment, rent dedicated spaces, and pay associated costs, such as cooling, rental, and electricity.

Buy Bitcoins

Users can easily purchase bitcoins from numerous online exchanges. There are global and country-specific bitcoin exchanges from which an individual can buy the bitcoins.

Work for Bitcoins

In some of the companies across the world, the employees get paid in bitcoins in place of cash currency.

How to Spend/Receive/Send Bitcoins?

Myriad bitcoin service providers possess a user-friendly interface that allows individuals to send/receive bitcoins and generate bitcoin addresses. The bitcoin addresses consists of alphanumeric in the range of 27-34 characters.

To send the bitcoins, users just have to write the bitcoin address of receiver and click on send. That’s it the payment is done. Usually, the bitcoin transactions take around 45-60 minutes to arrive, it might take a long time, depending on the amount.

You can spend Bitcoins as payment anywhere. In addition, you can use a Visa/Mastercard Bitcoin Debit card for making the payment, issued by Wirex or Coinbase Companies.

In a nutshell, Bitcoin is the most trending digital currency that will keep on creating a storm in the financial industry. Most of the companies, including banks are heading towards this blockchain technology gradually. So, wait no more, start Bitcoin mining today and earn profits.

Author: Perry

Having good technical knowledge and banking experience.

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