Skip to main content

Introduction To Bitcoin And Its Advantages

Bitcoin is a form of currency existing only in the digital world. The technology was created by an individual hiding under an identity named Satoshi Nakamoto. To this day, the creator/creators of the system never materialized, maintaining an anonymous status.

Bitcoins are not printed like traditional currencies as there are no physical representations for the 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 the virtual currency.

A user takes control of it using electronic devices, which also serves as medium to complete transactions with the help of numerous platforms. It is also kept and secured with the employment of virtual wallets.

Characteristics of Bitcoin

Bitcoin has the characteristics of traditional currencies such as purchasing power, and investment applications using online trading instruments. It works just like conventional money, only in the sense that it can only exist in the digital world.

One of its unique attributes that cannot be matched by fiat currency 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.

Moreover, transactions occur with the use of Bitcoin addresses, which are not linked to any names, addresses, or any personal information asked for by traditional payment systems.

Every single Bitcoin transaction is stored in a ledger anyone can access, this is called the blockchain. If a user has a publicly used address, its information is shared for everyone to see, without its user's information of course.

Accounts are easy to create, unlike conventional banks that requests for countless information, which may put its users in jeopardy due to the frauds and schemes surrounding the system.

Furthermore, Bitcoin transactions fees will always be small in number. Apart from near-instant completion of processing, no fees are known to be significant enough to put a dent on one's account.

Uses of Bitcoin

Apart from its abilities to purchase goods and services, one of its known applications features its use for a number of investment vehicles. This includes Forex, trading Bitcoins, and binary options platforms. Furthermore, brands offer services that revolve around Bitcoin as currency.

Clearly, Bitcoin is as flexible as traditional legal tenders. Its introduction provides every individual with new beneficial opportunities with its ease of use and profit making capabilities.




Source by Bart Rozum

Popular posts from this blog

Commoditizing the world

Let's discuss commodities; With the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. This comes from the Latin word "commoditas" meaning roughly advantage, convenience. So then what is a commodity? Well we consider Gold, Silver, wheat, corn, pork bellies, coffee, etc all commodities. If you look in the back of the WSJ or Investors Business Daily you will see a listing of all the commodities traded on the commodities exchange. Enron made some errors no doubt, but let's not judge all commodity markets in haste. Commodity trading works best when there is a stable instrument of trade. Sometimes the instrument of trade is actually the commodity. If you looked most countries of the world today you would find that there are three basic instruments of trade; money, as in currency, precious metals and gems, drugs; like cocaine, opium, and

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen. The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins

Could This Be a Great & Extreme Reversal?

The EURGBP has been on of the best currency pairs to trade since the referendum. And it looks ready to kick off again... False Break Reversal The FBR is one of the great reversal patterns. They show up time and again but can catch us out because we've been conditioned to stay with the dominant trend. It started last Friday with the Harami, inside day. Monday broke lower following through, so it seemed, with the down trend running since July. By the end of the day, it had reversed, leaving behind a long wick that turned the day's trading into a Hammer, one of the best price action reversal candles. Tuesdays price action confirmed the FBR. The rule is that when price comes back above the high of the downside breakout candle, the FBR is set. Earlier sell trades closed and then reversed. That's exactly what we have done. Hikkake An added technical reversal is the Hikkake. It's formed by at least three candles, starting with the Harami. Following the break lower, recovery on