Is that confusing? A lot of people are confused at first.
The general concept of currency and money is that a central bank controls them, that their value rises and falls based on the global market, and that they can be physically held.
Bitcoin defies them all.
It is, in fact, controlled by everyone who uses Bitcoin as the software used for this currency logs and validates who logs and validates activities related to Bitcoins across the globe.
You would think that since Bitcoins don’t need to be physically printed or minted, there could be an infinite number of Bitcoins.
This would devalue the currency and make it worthless.
In fact, there are exactly 21,000,000 coins.
If you look at a dollar bill, you know that it’s just a piece of paper with a number and some fancy pictures that say it’s “worth” $1.
In fact, it only has value because we say it does.
Bitcoins work the same way.
Those little pieces of digital code are only worth money because people say they are and want to exchange them for real goods/services.
The more popular Bitcoin becomes, the more value will be placed on each Bitcoin.
Bitcoin has the unique feature of being completely transparent.
No, not with personal data, but with transactions and amounts instead.
On the blockchain, you can see everything, and this complete transparency is what instills a lot of trust and security amongst the Bitcoin community.
For Bitcoin mining, you use a computer program to solve mathematical problems to verify various transactions around the world.
The miners then receive a certain amount of Bitcoins for solving those problems.
The most important feature of Bitcoin is that you cannot be forced to pay, nor can you cancel a transaction.
If you send a company some Bitcoins for a product, you cannot revoke the transaction nor can they force you to pay them repeatedly.
You would have to pay bank transfer fees, currency conversion fees, and more if you wanted to send money to a friend in Thailand from the United Kingdom.
Additionally, your friend may need to wait a few days before the money becomes available.
The money is available almost instantly with Bitcoins and there are not many transaction fees.
Your Bitcoin wallet is established when you sign up just like your online bank account where you can see your balance.
Unlike a physical wallet, this wallet is much more secure.
Money is lost forever if you lose it; however, it is impossible for people to take money from your wallet unless you give it to them.
In addition, if you know the Bitcoin address of someone, you can see how many bitcoins they have.
The Bitcoins in the wallet may still exist since they were recorded on the blockchain, but they cannot be spent since the wallet is lost.
As these Bitcoins have unique keys, if they are lost with a wallet, then they are essentially removed from circulation forever.
Bitcoins may sound a bit farcical at first, but they’re actually a real currency used to purchase real things.
Several merchants accept Bitcoins as payment for items, both online and in-store.
Stores such as Newegg, Overstock, Microsoft, Dell, and more accept Bitcoins
In-person retailers include Reeds Jewelers, One Shot Hotels, Holiday Inn (located in New York), as well as local pizza places, restaurants, and more.
Even gambling addictions, gold bullion purchases, or charitable donations can be funded using Bitcoin!
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.