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Bitcoin is the first decentralized cryptocurrency (or digital currency), which allows us to trade directly without the need to use the traditional banking system. It is a series of registrations (additions and subtractions of transactions) stored in an extensive database in a very secure way so that no one can falsify the transactions. Every time someone sends you an amount of Bitcoin, then the registrations in the database change, and you have more Bitcoin if we add the transactions with a positive sign to your address.
What is bitcoin?
All you need to have to use Bitcoin is a unique application, called a “Bitcoin wallet” or bitcoin wallet (on your computer, mobile or Online), to send small or large amounts to another user. If you want to win money and you are into sports, you can always sport bet too. Make your hobby a winning opportunity, learn more about your favorite teams, and win big. If you consider there are so many applications and technology that came in our life, and we were suspicious at first. The Internet, when it came out, allowed us to access information (e.g., news) for free, without having to buy a newspaper. The email allowed us to send complimentary messages and replaced the letters. Skype & Viber allowed us to make free calls and almost replaced the phone (at least the landline).
Bitcoin allows us to send money anywhere in the world, with minimal charge, directly and quickly, without anyone controlling our transaction. It has been around for almost eight years and has been spreading very fast lately event though 80% of the population doesn’t even know it.
Important Features of Bitcoin
We have gathered some of its key features:
- Decentralization: Its most important feature is that there is no central authority to control these transactions; all Bitcoin users are automatically the decentralized points that maintain the currency structure.
- Rarity: Note here that the bitcoin stocks that will ever be available are 21,000,000 BTC. This makes this unit an extra feature
- Ownership: Whoever holds the Personal Key and Password from a Bitcoin Wallet is the owner of the bitcoins it contains. So simple. If your personal key and Private key are stolen, you can not claim ownership of your Bitcoin.
Is Bitcoin legal?
The “virtual currency” bitcoin can not be described as a good, because it is essentially intended as a means of payment. On the contrary, the Court of Justice of the European Union has accepted that the purchase and sale of bitcoin against government currencies in exchange for the payment of a sum of money constitutes a service. From an economic point of view, the European Central Bank does not consider virtual currencies, such as bitcoin, to be complete forms of money. From a legal point of view, cryptocurrencies are also not regarded as conventional money as they are not issued by central banks. Thus, fictitious currencies do not fall under the concept of money or a recognized currency. From a legal point of view, bitcoin is essentially a means of payment, in which the acceptance of an exchange rate between traders is contractually agreed upon. Therefore, if the companies participating in the transaction accept it as a means of payment, it is considered acceptable.
Is Bitcoin safe?
Bitcoin has been tested in adverse conditions. The code that works is available and open to anyone who wants to study it and try to “break” it by stealing Bitcoin. But despite the attempts that have been made, no security gap has ever been identified that was not immediately filled. Illegal transactions or attempts to do so have been rejected by the system. In fact, all Bitcoin transactions since its inception are recorded anonymously and with encryption in the so-called Blockchain, i.e. in the trading index. So anyone can see them online. However, no personal details of the owners of the addresses are recorded.
In fact, as we said because the system is decentralized, every Bitcoin user with the software (wallet) they use (this is not the case with all available Wallet software), is at the same time one of the holders of transactions. When a user makes a move from their Wallet and publishes it, the system sends its request to other computers that maintain the list of transactions and asks for approval; if several points verify that it is possible to make the transaction, then it is written in the Blockchain and is secured forever.
Why get involved with Bitcoin, and what can it help me with?
The answer to why anyone should deal with Bitcoin is simple. For freedom and privacy in his transactions, for investment, or to generate profit. There are three roles you can choose to have in the Bitcoin community and take part in the change that takes place.
- Simple User: If you want to be a simple user, you can do this to reduce the risks of the current banking system.
- Trader / Investor: A large portion of people are either investing a number of their deposits in bitcoin, waiting for the price to rise, or trading among the available cryptocurrencies. Come back to a new article on bitcoin trading because I’m still looking for it.
- Miner: Although Bitcoin Mining is for a few now, as it requires a massive investment in machinery and energy costs, there are many who still do it either by buying their own equipment or renting equipment online from Mining Farms (companies that rent machines for bitcoin mining).
