Wednesday, 25 April 2018

Simple Guide to Bitcoin

What is Bitcoin? Here's a Quick guide to learn about it.

Bitcoin is a type new digitised currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto who is believed to be living in Japan.
Transactions are made with no middlemen so that's' hassle-free meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture and buy Xbox games but only in selected countries. But much of the hype is about getting rich by trading it. People have even become Millionaires with it. The price of bitcoin skyrocketed into the thousands in 2017.










Why Buy Bitcoins?


Bitcoins can be used to buy merchandise anonymously online. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation because it does not have a centralised authority. Small businesses may like them because there are no credit card fees so that makes it easy to use. Some people just buy bitcoins as an investment, hoping that they’ll go up in value but that depends on luck.

How to Acquire Bitcoins

Buy on an Exchange
Many marketplaces which are known as “bitcoin exchanges” to allow people to buy or sell bitcoins online by using different currencies across the world if it is approved in that particular country.


 Coinbase is a leading exchange market player, along with Bitstamp and Bitfinex. But security can be a concern: bitcoins worth tens of millions of dollars were stolen from Bitfinex when it was hacked in 2016. Even Apple Co-Founder Steve Wozniak once said that he lost 4 Bitcoins in an online fraud.

Mining
People compete to “mine” bitcoins using computers to solve complex math puzzles today. This is how bitcoins are created. Currently, a winner is rewarded with 12.5 bitcoins roughly every 10 minutes. So that is a pretty nice technique to get rich. Isn't it.

Anonymity in Bitcoins

Though each bitcoin transaction is recorded in a public log which is maintained regularly, names of buyers and sellers are never revealed in public.  While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything available online without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities are using it as it is not maintained at a large level and chances of getting caught are less.

Future in question

No one knows what will become of bitcoin in future. It is mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations but then countries like Canada and India has banned it.  
Governments are concerned about taxation and their lack of control over the currency which can hamper the economy.

4 comments:

  1. Hi, very good article. Thanks for sharing, good work. keep it up.
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  2. Good Article sir how i can buy bit cone?

    ReplyDelete
    Replies
    1. There are many online websites which are surely reliable to buy bitcoins.

      Delete