Bitcoin is a form of currency that exists only in the digital world. The technology was developed by a man hiding under an identity called Satoshi Nakamoto. To date, the creator/creators of the system have never materialized, maintaining an anonymous status.
Bitcoin is not printed like traditional currency because there is no physical representation for 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 virtual currency.
A user takes control of it using an electronic device, which acts as a means of completing transactions with numerous platforms. It is also kept and protected with the employment of virtual wallets.
Features of Bitcoin
Bitcoin has the characteristics of traditional currencies such as purchasing power, and investment applications using online trading instruments. It works like conventional money, only in the sense that it can only exist in the digital world.
One of its unique features that fiat currencies cannot match 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.
Furthermore, transactions are made using Bitcoin addresses, which are not associated with names, addresses or any personal information sought by traditional payment systems.
Every Bitcoin transaction is stored in a ledger that can be accessed by anyone, called the blockchain. If a user has a publicly used address, their information must be shared for all to see without the user’s information.
Accounts are easy to create, unlike traditional banks that request myriad information, which can put its users at risk due to the fraud and schemes that surround the system.
Additionally, Bitcoin transaction fees will always be small in number. Apart from the near-instant completion of processing, none of the fees are known to be significant enough to put a dent in one’s account.
Uses of Bitcoin
Apart from the ability to purchase products and services, one of its known applications features its use for several investment vehicles. These include forex, trading bitcoin and binary options platforms. Furthermore, brands offer services revolving around Bitcoin as a currency.
Obviously, Bitcoin is as malleable as conventional legal tender. Its introduction provides new beneficial opportunities to every individual with its ease of use and ability to profit.