What is Bitcoin and How it Works

What is Bitcoin

Bitcoin is the first de-centralized currency. It is a digital currency that requires no bank or central repository and is the future of money. Bitcoins are digita coins that can be sent through the internet peer to peer. Bitcoins have a number of advantages over regular currency.

  • Bitcoins are transfered direct from person to person without going through a bank or clearing house
  • Fees are much lower
  • Bitcoins can be used in ANY country
  • Your account can not be frozen (this does not mean your wallet cant, more on that later)
  • There are no pre-requirements or arbitrary limits

Lets Look At How Bitcoin Works

Several exchanges exist where you can buy bitcoins for dollars, euros and other currencies. Your bitcoins are kept in your digital wallet either on a web based wallet or on your computer or mobile device. Sending bitcoin is just like sending an email and you can purchase anything with bitcoin. The bitcoin network is secured by individuals called Miners. Miners are rewarded newly generated bitcoins for verifying transactions. After a transaction is verified it is recorded in a public ledger. The software for bitcoin is comoketeky open source and anyone can review the code.

Bitcoin is changing finance the same way the internet changed publishing. Bitcoins are an ideal way for businesses and individuals to minimize transaction fees. It doesnt cost anything to set up and there are no chargebacks.

A Brief History Of Bitcoin and How It Was Created

In 2009 Bitcoin was created by a person or organization named Satoshi Nakamoto. It was created as a new method of making transactions without the cost of fees and charges from payment gateway intermediaries such as Paypal, Western Union and other payment methods with high charges.

It took some time before it become an accepted currency as it is now. So at the start of the year 2010 the value of 1 bitcoin was just 0.10. s the value is now well over $1000, if you had invested just $100 into bitcoin back in 2010 and held onto them you would now be a Millionaire! And even just buying bitcoin 2 years ago would have doubled your money today. This price is likely to continue to increase over time as the currency becomes more widely accepted and used. With Japan recently making bitcoin legal currency and India and Russia also following suit, this has pushed the rice up faster in recent tines. It is widely estimated that by 2025 the bitcoin could be worth more than Half a Million dollars. Many global corporate companies have invested in bitcoin such as Paypal, Captal One, Google, and others as well as many well known entrepreneurs including  Richard Branson  and Bill Gates and also movie stars and sporting legends.

How To Use Bitcoin

In order to be able to use bitcoin you need to have a bitcoin wallet. Once you have your wallet set up you can purchase bitcoin from exchanges or some wallet provider themselves like Coinbase for example, and you can also accept bitcoin as payment for anything you like just by giving out your bitcoin address that you want to receive payment into along with the amount you want to receive for whatever it is you are providing that you want paying for.

Sending bitcoin is easy, you just enter the amount of bitcoin and the digital wallet address to send it to from inside your own digital wallet dashboard.

 

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