Are you perplexed about this new yet popular term ‘Bitcoins’ that are being flashed all around? When googled are you being stuffed with unknown technical theories and explanations? Do not worry as we here have tried and simplified the concept for you. Now you can quench your curiosity. We will explain you about how the system works, how you can use it for your advantage, and resources that will help you store and use your first pieces of digital currency prudently.
Bitcoin in a nutshell
A pseudonymous software developer who has been pseudo-named Satoshi Nakamoto introduced bitcoin in the year of 2008, as an electronic payment system basing it on some mathematical proofs. Till date no-one really knows who Satoshi Nakamoto is. This small wonder, Bitcoin emerged in 2008 just after big banks were accused by the Occupy Wall Street, of misappropriating the borrowers’ money, duping and faking clients, rigging the system, and charging largely boggling fees. The pioneers wanted to put the sellers directly in contact thus eliminating the middleman, cancelling the interest fees, and make transactions transparent, to hack corruption and cut down fee. The crux of the concept was to basically introduce a means of exchange, independent of any central authority, that could be transferred electronically in a secure, verifiable and immutable way. Paying with blockchain technology such as Bitcoin also lets you pay anonymously. Furthermore, they created a decentralized arrangement, where you could regulate your funds and know everything about what was happening to it.
Bitcoins, in the modern times have developed a lot in a relatively short span of time though. All across the globe, multinational enterprises and companies, accept its currency, varying from a large jewelry chain in the US, REEDS Jewelers to a private hospital in Warsaw, Poland. Multi-billion earning businesses such as Dell, Expedia, PayPal, and Microsoft accept them too. Websites are highly promoting it, there are exclusive publications such as Bitcoin Magazine publishing its news and updates, forums are frequently discussing cryptocurrency and trading its coins. It has an application programming interface acronymed to API, price index, and an exchange. But the problems it faces include thieves hacking accounts, high volatility, and transaction delays. On the other hand, people in third world countries may find Bitcoin their most reliable channel yet for giving or receiving money.
The simplest description about it could be that Bitcoin is a virtual currency or reference to the technology. It enables you to make transactions by cheque, wiring, or cash. Additionally, you can also use Bitcoin (or BTC), where you refer the purchaser to your signature, which is a long line of super strong security code encrypted with 16 distinct symbols for the same. The purchaser’s smartphone decodes the code to obtain the cryptocurrency. Putting it another way for better understanding, cryptocurrency is an exchange of digital information that enables you to buy as well as sell goods or services. The transaction gains its security, authenticity and trust by running on a peer-to-peer computer network system with encryption which is similar to Skype, or Bit Torrent, a file-sharing systems.