Bitcoin is known as the first decentralized digital currency, it is basically coins that can send over the Internet. 2009 It was the year where Bitcoin was born. The name of the Creator is unknown, however, it was given to the alias Satoshi Nakamoto to this person.
Advantages of Bitcoin.
Bitcoin transactions are made directly from person to person over the Internet. There is no need for a bank or a compensation center to act as the average man. Thanks to that, the transaction fees are too low, they can be used in all countries around the world. Bitcoin accounts can not be frozen, the prerequisites to open them do not exist, the same for limits. Every day more merchants are starting to accept them. You can buy anything you want with them.
How Bitcoin works.
It is possible to exchange dollars, euros or other currencies to Bitcoin. You can buy and sell, as it was any other country currency. To keep your Bitcoins, you must keep them in something called wallets. These wallets are on your PC, mobile device or on third-party websites. Send Bitcoins is very simple. It is as simple as sending an email. You can buy virtually anything with Bitcoins.
Bitcoin can be used anonymously to buy any type of merchandise. International payments are extremely easy and very cheap. The reason for this is that Bitcoins are not really tied to any country. They are not subject to any kind regulations. Small businesses love you, because there are no credit card fees involved. There are people who buy Bitcoins only for the purpose of investment, hoping to increase their value.
Ways to acquire Bitcoins.
1) Buy in an exchange: People can buy or sell bitcoins from sites called Bitcoin exchanges. They do it using their coins from the countries or any other currency they have or like it.
2) Transfers: People can send Bitcoins from each other for their mobile phones, computers or online platforms. It is the same as sending cash digitally.
3) Mining: The network is ensured by some people called the miners. They are regularly rewarded for all newly verified transactions. Thesis transactions are fully verified and then registered in what is known as a public transparent book. These people compete to mine of these Bitcoins, using computer hardware to solve difficult math problems. The miners invest a lot of money in hardware. Nowadays, there is something called Mining Cloud. By using cloud mining, miners only invest money on third-party websites, these sites provide all the required infrastructure, reducing hardware expenses and energy consumption.
Storage and saving of Bitcoins.
These Bitcoins are stored in what is called digital portfolios. These portfolios exist in the cloud or on people’s computers. A wallet is something similar to a virtual bank account. These portfolios allow people to send or receive Bitcoins, pay for things or simply save the Bitcoins. In opposition to bank accounts, these bitcoin bits are never insured by the FDIC.
Types of wallets.
1) Wallet in the cloud: The advantage of having a wallet in the cloud is that people do not need to install any software on their computers and expect long synchronization processes. The disadvantage is that the cloud can be hacked and people can lose their bitcoins. However, these sites are very safe.
2) Wallet on the computer: The advantage of having a wallet on the computer is that people maintain their bitcoins insured from the rest of the Internet. The disadvantage is that people can eliminate them when formatting the computer or due to viruses.