In the following article, you will find Bitcoin capitalized, which means that it refers to the technology and network and lowercase bitcoin refers to the currency.
What is Bitcoin?
At a first glance, it might seem hard to understand what bitcoin is. But in the following article, we made things easier for you! Bitcoins are Internet cash that you can send to anyone without involving a third party. Bitcoins can be traded worldwide and transactions with this type of «cash» are irreversible. Unlike the well-known currencies, bitcoin is not controlled by any country, it isn’t a palpable object and you can’t buy many things with it right now. You can’t put bitcoins on your credit card and take them out from a cash machine as they were designed to be digital and be accessed in online wallets.
Who? When? Why?
The peer-to-peer payment system and digital currency, Bitcoin, was introduced in 2009 by pseudonymous Satoshi Nakamoto. Bitcoin uses cryptography to control the creation and the transfer of money, that’s why it is often called «cryptocurrency». There is a multitude of advantages for using Bitcoin:
When paying with a credit card, you have to fill out a credit card number, expiration date, etc. but with Bitcoins you don’t have to do this;
There are no credit card fees for the merchants who accept Bitcoins;
Bitcoin is a currency accepted worldwide, by more and more online shops, entertainment and service providers (eg. Online casinos, including but not limited to btc casinoer https://norskcasino-online.org/bitcoin-casino);
Bitcoins can’t be counterfeited;
Bitcoin can’t be devalued;
These are not the only advantages, keep reading and you’ll find out more!
How does Bitcoin work?
The process of creating bitcoins is called mining. They can be sent and received via wallet software on a PC, mobile device or web application. The Bitcoin wallet software generates and stores private series of letters and numbers and communicates with peers on the Bitcoin network. The Bitcoin system becomes progressively more difficult to «mine» over time, and by the year 2140, a total number of 21 million bitcoins will be available. The Bitcoin network is used to monitor and verify the creation of new bitcoins and the transfer of bitcoins from one person to another. There is a log with all the transactions made across the Bitcoin network. Mining Bitcoins – can be done by users who have their updates to the Bitcoin log approved. Every user is awarded every 10 minutes a fixed number of new Bitcoins.
What is bitcoin worth?
The virtual currency, bitcoin, is very volatile because of the lack of liquidity and a central monetary authority. Also, bitcoin is a startup currency and people are still experimenting with it. At Mt. Gox, the biggest and most established Bitcoin exchange, the bitcoin value reached $588. 97, as this number is changing over time reflecting the interest and transactions registered from the users.
Where can you find bitcoins?
You can get bitcoins by buying them from different pages on the Internet or from someone. You can also buy them directly from an exchange with your bank account. The fastest way is to buy the bitcoins in person, for cash. One of the safest places to buy Bitcoins is bitstamp. net.
Things you have to know
Bitcoin is your wallet, so you have to take good care of it! Learn how to use Bitcoin correctly, in order to benefit from its great features. Volatility Because of its young economy, Bitcoins value can increase or decrease in a very short period of time. That’s why it isn’t recommended to keep your savings with Bitcoin. Don’t store money that you don’t want to lose with Bitcoin. Irreversibility Transactions made with Bitcoin are irreversible which means that they can be refunded only by the person receiving the funds. So, an advice is to make business only with people you know and trust because they have to keep control of the payment requests. Bitcoin doesn’t offer much privacy Bitcoin transactions are stored publicly and permanently on the network and anyone can see the balance and transactions of any Bitcoin address. However, there is no way to know who is behind a specific address unless there is a purchase made. Taxes Bitcoin isn’t an official currency so many countries ask you to pay income, payroll and capital gains taxes on bitcoins, because they are something valuable. Bitcoins became a popular currency among online casinos too! They are used like any other currencies: you can deposit bitcoins in your online casino account and you can also win bitcoins by playing the online casino real money games.