Unless you have been living under a rock, chances are you have heard of the bitcoin craze going on around you. The price constantly rising, the fear of an imminent crash. If you’re like the majority of people though, you have very little idea of what bitcoin actually is. Let’s go through the very basics of bitcoin.
What is Bitcoin?
Bitcoin is a form of cryptocurrency, think of it as digital or virtual currency. It is not physical cash, but it can be stored and moved around just like cash in banks. Bitcoin transactions are tracked by a ledger that can be updated by bitcoin users themselves. Transactions are free from middlemen and most importantly, free from banks. Bitcoin is completely decentralized, there are no large central banks controlling the currency. It is in essence, controlled by its network of users.
Why do people use Bitcoin?
Many vendors have begun to accept bitcoin as payment. It is beneficial to merchants because there are no credit card fees or deductible percentages with bitcoin. Bitcoin also attracts many users because of its anonymity. Bitcoin payments can be sent instantaneously, freely, and anonymously to anywhere in the world. They are not tied to any banks and thus are not tied to any sort of regulations.
How do you get Bitcoins?
If you’re looking to enter the bitcoin market you can purchase bitcoin on any one of the bitcoin exchange marketplaces. These sites allow users to buy and sell bitcoin basically like trading stock.
People can transfer bitcoins to each other using apps or computers. It is very similar to apps that allow you to send money digitally.
Bitcoin mining is a process that involves users using special computer software to solve complex puzzles. Users who solve the puzzles are rewarded with bitcoins.
While you may still be confused as to what exactly bitcoin is, you are not alone. Contact Andrew Kyriacou with any questions regarding bitcoin!