Bitcoin is a type of currency that exists electronically. It is a digital currency that can be transferred directly among users with its transactions recorded in a ledger that cannot be tampered.
Bitcoin was founded in 2009 by a Japanese programmer. Although not much is known about this person, the name that is commonly associated with who created and introduced bitcoin to the world is Satoshi Nakamoto. It is also speculated that Satoshi Nakamoto is not an individual, but a group of programmers who are responsible for introducing the bitcoin concept.
The idea of creating this digital currency was to give the seller full control of the transaction. What the pioneers wanted to achieve with this concept was to eliminate interest fee and middleman, make the transactions transparent and to cut off corruption. With this centralized system, the users gain control of where how and where their funds are used.
Over the years, bitcoin has gained massive attention from companies and investors from across the world. Private hospitals in Poland to jewellery companies in the USA accept bitcoin as a method of payment.
How Can BitCoins be Used?
It is possible to use bitcoins to make purchases. It works just like regular money to make payments for goods and services. There are some people who strictly reserve bitcoins for investment purpose. Since the value has been increasingly significantly since its inception in 2009, it can make a good investment choice for traders.
Bitcoins are digital currencies and therefore they can be kept in bitcoin wallets. The different types of wallets include online, mobile, desktop, paper and hardware wallet. It is possible for a user to have any number of bitcoin wallets for storage.
How to Get BitCoins?
Generally, there are three ways to acquire bitcoins. The first is known as bitcoin mining which is a process that allows individuals to mine this cryptocurrency using specialized equipment. There are huge costs associated with this process and therefore, it may no longer be a viable option for individuals.
The second method is to buy bitcoins. There are numerous options such as online exchanges available from where individuals can buy bitcoins.
Thirdly, it is possible for people to work for bitcoins. Some sites pay in bitcoins and if individuals complete projects successfully on these sites, they can expect their payment in bitcoins.
Is it Important to Keep BitCoins Safe?
With the increasing popularity, demand and high value of bitcoins, there is a growing need to keep bitcoins safe. In the past, a couple of incidents have threatened the future of bitcoins.
No authority, bank or government organization acts as an intermediary when transactions involve bitcoins and transactions are also irreversible which encourages bitcoin thefts. Even if bitcoins are stolen, they are still useable and have a high value and till date, none of the tracking methods that have been proposed can actually help locate stolen bitcoins.
Put simply, the transactions cannot be undone and bitcoins are susceptible to being stolen if they are not protected. To protect the bitcoins, users must keep a small amount of them on their computer and keep the rest in a safe environment. They must encrypt their wallet and do backups on a regular basis. Most importantly, they must keep their software updated at all times.
Bitcoin is not only a popular cryptocurrency, but it has numerous interesting facts associated with it. to find more surprising and unbelievable facts on bitcoins, refer to the infographic.