Bitcoin may be the most talked-about digital currency and the hottest topic of discussion in the business market, but surprisingly not many people are aware of Bitcoin and to be honest have no idea what Bitcoin is?
Bitcoin is a new age, advanced technology digital currency. The thing that makes it different from the government-backed government currency is that you cannot touch it.
Many people are very unsure about Bitcoin and think that it is a dangerous way of gambling. So, let’s help you guys who have little or no idea about Bitcoin! Let’s start.
What is Bitcoin?
Bitcoin is digital money that is used for paying for services you take just like dollars or pounds. That’s it. That is where the similarity ends.
There is also a huge difference!
- Bitcoin is decentralized
This is the first and very huge difference between Bitcoin and traditional currency. Bitcoin is not backed by the government or banks. It is decentralized and independent.
While trading online, everyone wants to keep their personal information a secret and that anonymity that you wish for is provided by the Bitcoin wallet. The Bitcoin information is tied to the wallet ID, rather than your personal information and it serves the purpose good.
- Completely Digital
Bitcoin is digital; the currency lives online and can be tracked with the Blockchain technology that has the entire history of Bitcoin transactions.
Is Bitcoin anonymous?
Bitcoin is not anonymous and skilled hackers and government agencies can track almost anything, no matter how much high-end security it has. If the hacker can connect multiple nodes to the network, it can easily get all the information regarding the translation of Bitcoin
How to get Bitcoins?
You can purchase Bitcoins with cash, credit or debit cards. But before you purchase Bitcoin you need to have a Bitcoin wallet from where your wallet ID will be generated. A bitcoin wallet is just a place where you can store and do a transaction of your Bitcoins, just like your regular wallet that stores all your money.
You can “mine for Bitcoins”
So, if you do not want to purchase Bitcoins and instead Mine for it, solve some tough Maths and if you are successful in solving it, you get Bitcoins as a prize.
Though Maths problem is not at all easy and you need to have special software for solving the problem. Having that said today even “mining pools” have arisen, where groups split their computing power and when the puzzle is solved, the winnings are divided based on the amount of computing power each contributed to the calculation.
How can we use Bitcoin?
Though most people think that Bitcoin is just illegally and is used for paying for illegal activities like gambling and drugs, you will be happy to hear that you can find many legal ways for using Bitcoins.
Big companies like Microsoft, Dell and few of the airlines accept Bitcoins as a legitimate way of payment.
Is it wise to invest in Bitcoins?
So, now comes the issue and the question of why most people will be reading this article. Is it a wise decision to invest in Bitcoins?
- Mining Bitcoin is costly
If you are thinking of mining Bitcoin, it is not that easy. Uncoding the 64 digits code is very tough and you need specialized software for it. The software itself is very expensive ranging in thousands and after all the efforts when you solve a puzzle, you earn Bitcoin. So the process is really expensive.
- High demand
The production of Bitcoin is very limited and it is rumoured that after 2040, no more Bitcoins will be created. It is also said that someday the government will take charge of Bitcoin and keep it in reserve like gold. It means that the demand for Bitcoin is going to be very high.
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