What is Bitcoin? Everything you need to know

What is Bitcoin?

Bitcoin is a currency, like a euro or the US dollar, used to exchange goods and services. However, unlike other currencies, Bitcoin is an electronic currency that presents novel features and stands out for its efficiency, security, and ease of exchange.

The first thing to know is that Bitcoin is both a currency and a digital system. As a currency, it can be used for everything that any currency can use, but instead of having a government entity -like a central bank- that issues and supports it, it is based entirely on the digital system that was devised by its creator, Satoshi Nakamoto.

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Did you know that the Bitcoin protocol is totally open and transparent?

Benefits and advantages of Bitcoin

Currently, it is the most widely used digital currency in the world and there are good reasons why it is becoming increasingly popular. Both private users and sellers and business owners find in Bitcoin important advantages that have led them to adopt this system.

Users can manage their funds with digital wallets that have both a public key (equivalent to a bank account number) and a private key (equivalent to the bank account password).

With both, it is possible to carry out financial transactions from anywhere in the world and at all times, so that, in addition, a currency that has no territorial ties is a result.

In the same way as any other currency, it is possible to exchange it for local money, for which there are exchange houses or platforms like LocalBitcoins, which work all over the world.

Some features of introduction to Bitcoin:

• It does not belong to any State or country and can be used all over the world equally.
• You can buy bitcoins with euros or other currencies and vice versa, like any currency.
• No intermediaries: Transactions are made directly from person to person.
• It is decentralized: it is not controlled by any State, bank, financial institution or company.
• Its falsification or duplication is impossible thanks to a sophisticated cryptographic system.
• Transactions are irreversible.
• It is not necessary to reveal your identity when doing business and preserve your privacy.
• The money belongs to you 100%; It can not be intervened by anyone or the accounts can be frozen.

Bitcoin is fair

In many traditional systems we find that sending money is much easier than receiving it.

This makes it difficult to create new businesses and online stores. However, with Bitcoin, both options are just as simple and anyone can send and receive money without any type of restriction.

Also, if you own a business, both digitally and physically, it does not cost anything to start accepting bitcoins.

Your bitcoins are only yours.

The decentralized system behind the bitcoins makes it impossible for any other person who does not have your credentials to access your money.

Your bitcoins are yours and can not be frozen or hijacked. You can not close any account and only you have access.

This aspect is for many people perhaps the most important. To really feel that they own their money and be sure of it.

Bitcoin offers security to the buyer and the seller.

When we make purchases with Bitcoin we do not have to reveal sensitive information such as credit card numbers or bank accounts and therefore there is no risk of this information being stolen from the online seller.

Bitcoin transaction fees are very low and there is no risk that fraudulent buyers and scammers that reverse the payment, staying with both the product and the money.

Finally, the characteristics of this virtual currency allow the pages to establish a trust service (escrow), ensuring that the seller only receives the money if the product has successfully reached its destination.

They are a market that never stops.

The price of Bitcoins is something that never stops, proof of this is that their market is negotiated 24 hours a day, 365 days a year.

Having this feature, there are many communities behind, such as this cryptocurrency forum where there is the largest Spanish community of Traders, both Bitcoin, and other cryptocurrencies.

It is important to clarify that, against the urban myth, Bitcoin is not really anonymous.

Although no personal data is required, and therefore at first glance. It can not be known to whom the purse belongs.

In the case of the Internet Archive, it can be seen, as they decided, but in other cases no name appears – it is possible to trace the addresses to their owners if they have not taken any precautions to hide.

For this reason, several proposals have been made to increase their privacy or, beyond that, other cryptocurrencies focused on this characteristic have been created, such as Monero and Zcash.

Additional Information.

  1. How to Save Money Quickly – 30 Effective Tips
  2. How a Bitcoin is Created – Tips
  3. How to Buy Bitcoins in The United States – Tips
  4. What is the Internet? Ideas, Concept, Definition and Explained
  5. Albert Einstein, 7 Things You Didn’t Know
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