Bitcoin

Bitcoin

Bitcoin is a latest currency that was created by an anonymous person using the alias Satoshi Nakamoto in 2009. Transactions are made with no central men, it means not using banks. There are no transaction fees and no need to give your actual name. More merchants are beginning to allow them. You can buy webhosting services.

Why use Bitcoins?

Bitcoins can be used to buy goods anonymously. In addition, because of bitcoins are not tied to any country or subject to regulation international payments are easy and cheap. There are no credit card fees so small businesses may like them because. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

Buying Bitcoins

 Buy on an Exchange

Some marketplaces called “bitcoin exchanges” agree to people to buy or sell bitcoins using different currencies. Mt. Gox is the largest bitcoin exchange.

      Transfers

People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.

    Mining

People try to win to “mine” bitcoins using computers to solve difficult math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes.

How own Bitcoins

Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.

Secrecy
Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.

Future in question

No one knows what will become of bitcoin. It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency.