Exactly what is a Bitcoin? It is not an actual coin. Bitcoin is a decentralized form of crypto coin. This means that governments, as well as financial institutions, do not regulate them. For this reason, unlike the traditional bank account, you do not need a long list of paperwork and proof of identity for you to establish a Bitcoin wallet. A Bitcoin wallet is what you will need so that you can access your Bitcoins and to send the Bitcoins to other individuals.
History of Bitcoins
Bitcoin was introduced after many years of research into cryptography by a software developer (Satoshi Nakamoto) who designed the mining algorithm and introduced it in the year 2009. Bitcoins are not backed by any tangible commodity such as silver or gold, in fact, they are traded online as actual commodities. A Bitcoin is an open source product that can be accessed by anyone who is a user. You just need to have access to the internet, email address, and money to get you started.
How to set up an account
You can get a Bitcoin wallet from certified brokers online. When you open the wallet through a certified broker, you will get a Bitcoin address, which is usually a series of letters and numbers similar to a bank account. You will also get a series of letters and numbers that act as your password.
Does a Bitcoin Work As An Anonymous Payment Processor?
Numerous benefits come with having a Bitcoin wallet. First, you can use the Bitcoins to make a payment. You can also use them to send money anonymously to someone. Additionally, you can utilize them as an investment. Today many merchants are accepting Bitcoin as a form of payment. The same thing goes for sending money. If you owe someone money, you can send them the Bitcoin equivalent to the amount of cash you owe them.
Bitcoins as an investment
Most people store Bitcoin because their value fluctuates from time to time. For instance, at the beginning of 2013, one Bitcoin was valued at $400; however, this price skyrocketed to more than $1000 by the end of 2013. This means if you had three Bitcoins at the beginning of the year, your investment of $1200 gave you more than $3000 by the end of the year 2013.
Bitcoin works, but there have been some critics who have stated that the digital currency may not be ready for use because of its volatility. There have also been setbacks such as the hacking of the Bitcoin exchange resulting to loss of millions of dollars. However, the supporters of digital currency say that there is still hope for virtual currency and have predicted a massive growth in future.