Bitcoin is crypto or virtual currency, a currency that has no physical existence. Bitcoin was initiated by a soft engineer named Satoshi Nakamoto in 2009. He wanted to introduce such a currency to work without a central authority. Bitcoin is free from any type of state binding. It is not like paper currency. There is no transfer from bank to bank. It transfers from person to person. It is a computer file installed on your computer. You can make payments from your computer or mobile phone to another computer or mobile phone, without any interference from your government. How to start to go with Bitcoins.
- Open an account on Bitcoin Exchange.
- Verify your identity.
- Deposit money in your account.
- Open your first position in the exchange.
There are different ways to get Bitcoins. It can be brought by using real money. You can achieve it by selling out merchandise. It also be get by a process called mining.
Bitcoin holder has to establish a digital wallet. Bitcoin wallet unlike a physical wallet is a piece of digital information consisting of a private key used to access Bitcoin addresses and to make transactions. Kinds of Bitcoin wallets are mobile, web, hardware, and desktop.
The role of the cryptocurrency blockchain is the same as a ledger in the accounting system. It called Distributed Ledger Technology. It records all the transactions made by users. Blocks are the pieces of information, comprising three parts. Blocks record information about transactions, date, time, and amount of transaction. Information is stored about who is making transactions. Blocks store information, making it distinguished from other blocks. Newly stored data is added to Blockchain. The Blockchain is an array of different blocks concatenated together. In brief, blockchain is a system to record.
Bitcoin as a Mode of Payment
- It has reported in the past, many banks have been targets of hackers, but Bitcoin exchange has powerful software and hardware technologies, like blockchain and bitcoin wallet, so there are minimum chances of hacking.
- Transactions through a mobile phone is also a plus point of Bitcoins. The user has to install Wallet application on his phone. By using his mobile user can make transactions any time and every ware.
- The transaction fee is very nominal, as compared to bank transactions.
- The number of Bitcoin holders are increasing day by day. Due to Bitcoin technology (Blockchain) buying and selling are becoming easier. As compared to the past, bitcoins are accepting every ware in the world.
- Among all the advantages of Bitcoins, it is the most important advantage that there is no third party involved while making a transaction. It keeps the secrecy of business. Bitcoin is not controlled by a central authority, there is no involvement of bank, a government, or any other financial agency. This is the most salient feature of Bitcoin
- There is no need to declare your Bitcoins before state institutions, also investor is not under any obligation, imposed by the state, regarding the investment. It is free from state bindings.