Many web surfers have heard of Bitcoin, the digital currency. To be more precise, bitcoin is a type of cryptocurrency – the implication of security and cryptography is important.
In this post, we attempt to identify 10 facts about Bitcoin that can give you a clearer understanding of what it is, what it does, and how you can use it to buy products or services online.
1. What are bitcoins?
Bitcoin (in uppercase) refers to the software or network (for example: the Bitcoin network), while bitcoin (in lowercase) refers to the digital currency itself (for example: two bitcoins).
The price fluctuates, depending on what people are willing to pay. It traded for a few cents (during the first few months of birth) up to $ 19,000 during its peak in December 2017.
How to buy bitcoins;3 Ways
There are three main ways to get bitcoins: mining them, buying them, or working with them.
Bitcoin mining has been really profitable. However, it is currently no longer affordable for the average individual. It is in fact necessary to purchase specialized equipment, obtain dedicated spaces and pay the related associated costs (rental costs, electricity and cooling).
You can buy bitcoins from many online exchanges. There are now more options than ever: there are global bitcoin exchanges and even country-specific bitcoin exchanges. You can also buy them from other people.
Work with Bitcoin:
Some people are paid in bitcoins rather than currencies. Websites like XBTFreelancer and Coinality list jobs with bitcoins payments.
9. How can I send / receive / spend bitcoins?
Bitcoin wallets come with addresses, which represent a destination, similar to an email address. Bitcoin Cash addresses are alphanumeric, ranging from 27 to 34 characters in length.
Many bitcoin service providers have a user-friendly user interface that allows users to generate bitcoin addresses, send and receive bitcoins.
To send them, users simply need to ensure a positive balance in their wallets, enter the recipient’s bitcoin address and hit enter.
Bitcoin transactions usually take less than an hour to arrive, but can take longer or shorter depending on the amount of the commission and the service provider.
You can spend bitcoins wherever they are accepted as payment. You can also use a Visa / Mastercard bitcoin debit card issued by companies such as Wirex or Coinbase.
10. What are the disadvantages of Bitcoin?
Depending on who you consult, you will get different answers. Coders and programmers could argue that bitcoin is already an outdated network, compared to some of the newer cryptocurrency networks available.
However, many countries around the world have warned the public of its risky nature, and some political parties have extreme views on this. Indeed, Russian and French lawmakers are thinking of banning it altogether.
Bitcoin is interesting, but the technology behind it – the blockchain – is even more so. In fact, having a method to record data in a way that cannot be tampered with or erased is an incredible thing. It is also a convenient method of storing information. Many companies, including major banks, have expressed interest in blockchain technology.