Bitcoin is a form of currency existing only in the digital world. The technology was created by an individual hiding under an identity named Satoshi Nakamoto. To this day, the creator/creators of the system never materialized, maintaining an anonymous status.
Bitcoins are not printed like traditional currencies as there are no physical representations for the cryptocurrency; it is produced by users and numerous businesses through a process called mining. This is where dedicated software solves mathematical problems in exchange for the virtual currency.
A user takes control of it using electronic devices, which also serves as medium to complete transactions with the help of numerous platforms. It is also kept and secured with the employment of virtual wallets.
Characteristics of Bitcoin
Bitcoin has the characteristics of traditional currencies such as purchasing power, and investment applications using online trading instruments. It works just like conventional money, only in the sense that it can only exist in the digital world.
One of its unique attributes that cannot be matched by fiat currency is that it is decentralized. The currency does not run under a governing body or an institution, which means it cannot be controlled by these entities, giving users full ownership of their bitcoins.
Moreover, transactions occur with the use of Bitcoin addresses, which are not linked to any names, addresses, or any personal information asked for by traditional payment systems.
Every single Bitcoin transaction is stored in a ledger anyone can access, this is called the blockchain. If a user has a publicly used address, its information is shared for everyone to see, without its user’s information of course.
Accounts are easy to create, unlike conventional banks that requests for countless information, which may put its users in jeopardy due to the frauds and schemes surrounding the system.
Furthermore, Bitcoin transactions fees will always be small in number. Apart from near-instant completion of processing, no fees are known to be significant enough to put a dent on one’s account.
Uses of Bitcoin
Apart from its abilities to purchase goods and services, one of its known applications features its use for a number of investment vehicles. This includes Forex, trading Bitcoins, and binary options platforms. Furthermore, brands offer services that revolve around Bitcoin as currency.
Clearly, Bitcoin is as flexible as traditional legal tenders. Its introduction provides every individual with new beneficial opportunities with its ease of use and profit making capabilities.