Bitcoin is a e-currency of which you can use in order to purchase or pay something online. As to who invented it has been a subject of speculation. No one can even trace as to the real creator of this famous e-currency. What’s the thing with bitcoin is that your privacy, your details about your name and your address are kept secret. No one needs to know.
It simply uses an encryption in order to do a transfer. How is this generated? It needs miners. They are the people who in the virtual world generate the bitcoins. They are mining just like similar to gold. The difference is this – they mine in order to keep everything secured and not easily be traced or hacked.
Also, unlike the traditional bills you ain’t going to seem them printed. They are out there in the virtual world. It has been generated by people themselves, who run PCs around the world, to come up with 1 unit. Do you know that it’s price goes up and down similar to foreign currencies as well. There was a time that 1 bitcoin cost hundreds of dollars or even thousands of dollars.
Another thing with bitcoin is that Central Bank can not even take the funds that you do have in there. Wherever you are in the world you can make use of this e-currency to do all your transactions.
What are your thoughts on chargebacks? It is such a pain, right? Once that the bitcoin has been sent you can not even get it back without having to ask the permission of the receiver. So, if you are the type who does not trust using credit cards. Then, this is the one for you.
What about your full details? Are you not afraid that your name and address are being sold to other merchants? Good thing with bitcoins this is not going to be an issue at all. You are going to sit back and relax, make that purchase and that is it!
No information will be given away as it uses an encryption. This is perfect to those people who value their privacy and does not want their information will be given away without consent. It is referred as private currency. So, do take note no one even know where it’s address is or who owns it even.
Many people have heard about digital currency, but not everyone uses it or knows how to get it. With more and more businesses adopting it as a form of payment, here’s a quick look at the process of acquiring some of your own.
If you don’t mind waiting a couple of days, the easiest and cheapest way to get your hands on some bitcoins is to sign up with Coinbase and link your bank account. Coinbase charges a low 1% fee and you receive your bitcoins as soon as the transfer from your bank account clears. Coinbase doubles as a web wallet with a mobile Android app. This allows you to easily purchase and sell bitcoins from your office, on the go, or from the comfort of your own home.
Another great way to get bitcoins today is LocalBitcoins.com. It operates like a craigslist for bitcoins allowing buyers and sellers in the same geographical areas to find each other and trade bitcoins for cash. While this can be very simple and quick, we recommend taking the same precautions you should take whenever meeting a stranger from the internet. LocalBitcoins.com has a rating system that should help you find a trustworthy buyer or seller, but maybe don’t meet them in a dark alley or under a bridge.
Online Bitcoin Exchanges
Bitcoin exchanges enable you to store both dollars and bitcoins in your account and then buy and sell bitcoins instantly at the market rate. This enables you to trade bitcoins the way you might trade a stock. The main downside of exchanges is that it can be difficult to fund your account with dollars in the first place or transfer your dollars out after selling coins.
Mt.Gox was the largest Bitcoin exchange and now all their old users are in a class action lawsuit against them. Coinbase is a much better option.
As Bitcoin is a currency without borders, there are many other exchanges that can be used internationally. We have had some success with Russia-based BTC-e despite their clunky interface. European Union-based Bitstamp is well regarded.
Now that you have some bitcoins, in next article we will learn how to use them.