What is Bitcoin

Bitcoin is a digital currency and also a peer to peer payment system that was introduced in 2009. The mastermind behind this great new invention is a software developer that goes by the pseudonym Satoshi Nakamoto. When you are using bitcoin, you do not need middlemen or banks. In addition to that, you will not need to pay transaction fees and you do not even need to give your real name. Bitcoin is the name used to refer to the whole technology while bitcoins refers to the currency itself. After understanding what is bitcoin you can take full advantage and enjoy the benefits that come with this economy… Bitcoin is currently being seen as a real currency around the world as retailers accept it to take payments and has set up ATM machines with plans to set up more ATM machines globally for you to take fresh bitcoins from the machines.

Instructions

  • 1

    How does Bitcoin work;You use bitcoin when you want to buy things anonymously. There are many reasons that make people want to buy things without necessarily revealing their identities. Some of the main reasons why people feel a need to buy anonymously are if you do not want the family or friends to know about the purchase or when you are planning to surprise someone. The numbers of merchants that accept Bitcoin as a valid means of transaction are increasing every single day. This means that with time, it might be possible to purchase everything by making use of this currency.

  • 2

    How does one get Bitcoin;After reading about the great invention that bitcoins have turned out to be, the natural next step will be to try and figure out how to get some. There are several exchanges where you can buy bitcoin using different currencies online. Mt. Gox is one of the largest exchanges where you can buy or sell Bitcoin. It is possible to buy or sell bitcoins digitally by making use of mobile applications and computers. It is similar to digital money transfer platforms.

  • 3

    What is mining for Bitcoins; The alternative way to get bitcoins is by what is called mining. This is the process by which people compete for bitcoins by trying to solve difficult math puzzles online. Normally, a winner is awarded 25 bitcoins after every ten minutes. If you know how to compete and complete the math puzzles, you can get the currency without having to pay for it.

  • 4

    How do you store Bitcoin; Bitcoins are stored in what is called a digital wallet. This wallet is like a virtual bank account that allows users to either send or receive the currency online. In addition to sending and receiving money, the wallet allows you to buy goods and save the currency. However, this wallet and the currency are not insured by the FDIC. This means that you may not get any compensation if you were to lose the money.

  • 5

    About Bitcoin and anonymity; The best thing about using bitcoin to transact is that you do not have to reveal your identity. While this may be a great way of keeping your financials private, it also creates a leeway for people to use the platform to use the currency to buy things like drugs online or conduct other illicit activities.


    Those are a few of the things that you need to know about bitcoin and how to use it. Basically, it is a great way of buying and selling stuff online and is also great when you are trying to save money.

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