The word Bitcoin describes a system of the electronic transactions without depending on anyone, men, bank or Government. Digital tokens are the medium of exchange of this system.
To put it in simple words, Bitcoin is a public form of transaction that can be seen or usable by everyone.
Why use Bitcoin?
Bitcoin transactions are irreversible. Once a transaction has been verified, it cannot be reversed. With internet connection anyone can use it easily, it is ideal for those users who want fast settlement in their payments. Users can send digital coins over a secure network directly to anyone else. The complete transaction history of Bitcoin is available every time for anyone.
Basic for a new Bitcoin user:
As a new user, everyone can get started with Bitcoin without any technical knowledge or previous knowledge. To generate your first Bitcoin address you have to install a digital wallet in your computer or Smartphone. You can create more than one address when you need. You can disclose your wallet address to your friends so that they can pay you. In fact, it is similar to using email, except in this case bitcoin addresses are used only one time.
How does Bitcoin work?
Actually, each Bitcoin is a computer file which can be stored in users Smartphone or computer digital wallet app. Users can send or receive digital tokens through this digital wallet. Every single transaction is recorded or verified in a public list called block chain. This makes it possible to track the transaction history to stop digital wallet or Bitcoin hackers.
How can I buy Bitcoin?
You can buy your first Bitcoin from any of these four places:
- Cryptocurrency exchange: from here you can exchange regular coins for Bitcoins.
- Bitcoin ATM: where you can exchange Bitcoins or other currencies with other cryptocurrency.
- Classified service: here you can find a person that will help you trade Bitcoins for cash.
- Sell a product: By selling a productor service you can easily buy Bitcoin.
Advantages of Bitcoins:
Due to Bitcoin acceptance increasing day by day that’s why many merchants accept bitcoin payments. There is no difference between national and international transactions payments or there is no international transaction fee. Other currencies do not protect your privacy than physically handling cash or a credit card. But in the case of bitcoin privacy protection allows users to completely separate their bitcoin address from the public. Bitcoin is out of the borders of political influence. Means Bitcoin is not created or controlled by any state, such as the central bank. Due to its decentralized nature or popularity bitcoin is not beholden to its creators.
Disadvantages of Bitcoin:
As the world’s most popular cryptocurrency, or have a critical mass of users bitcoin has to face many fraud or attacks risks. Bitcoins always remain attractive to criminals. Although bitcoin is the most easily exchanged cryptocurrency, its price goes up and down over a short period of time. Bitcoin for its users offers short term benefit. Due to this reason bitcoin purchasing power varies from week to week.
One of biggest drawbacks of bitcoin is that there is no standardized policy for chargeback and refunds. Once a bitcoin transaction has been confirmed or recorded it cannot be reversed. Bitcoin mining consumes a lot of electricity. Some of the biggest mining companies are in China, where most of the electricity power comes from dirty coal plants which makes the environment unhealthy and unsafe.
That list of merchants that accept bitcoin increasingly day by day. By using bitcoin you can buy plane tickets, furniture, goods, and web publishing services.
Some experts believe that in the upcoming days the national Government will work on those currencies that have cryptocurrency like features. Meanwhile, some experts believe that fiat currency and cryptocurrency will continue to work parallel with each other. Move cautiously, never invest money that you can not afford to lose.