The Basics of Bitcoin – What Is Bitcoin?
Bitcoin first emerged in the year of 2009. Bitcoin has gained quite a lot of popularity since then due to a number of key reasons. Primarily, people who wish to remain anonymous are attracted towards the new technology since transfers through Bitcoins are not easily monitored by the government.
This article will act as an introductory guide for you. Reading this article will give you all the necessary information regarding what Bitcoins are, where they come from, who makes use of them, and why they are valuable.
The Basics of Bitcoin – Understanding Bitcoins
Bitcoins are ‘Cryptocurrencies’ – which means that they are not physical coins but instead are digitally stored assets.
This means that unlike actual money (like USD, EUR or GBP), they do not exist in the real world but only have a virtual existence online.
Bitcoins are not controlled by banks or legal systems either.
Bitcoins are not the only form of cryptocurrency to exist today, but they are certainly the largest and most valuable cryptocurrency.
There are mathematical codes assigned to Bitcoins, without which they are invaluable.
They can be transferred quite easily from one person to another with just the help of an internet connection.
Bitcoins are stored within what is known as a ‘digital wallet.’ You can obtain Bitcoins by purchasing them with your own physical money, selling something to someone who pays you in the form of Bitcoins or creating them using mathematical algorithms and coded encryptions.
The Basics of Bitcoin – Who Can Use Bitcoins?
Bitcoins are used by anyone and everyone who is interested in transferring money or buying and selling goods without revealing who they are. Using Bitcoins eliminates the check of the government and carrying out this entire process without paying so much interest.
A Bitcoin transaction is an extremely protected exchange and so it is used by many businesses, from jewellers to hospitals.
Bitcoins are also used to sell and buy goods which is a direct exchange without the presence of what is known as a 3rd party or ‘middle man.’
The Basics of Bitcoin – Reasons Why Bitcoins Are Valuable
There are quite a few reasons why Bitcoins are increasingly becoming more and more valuable. Some of these include:
- A Great Investment
The future of Bitcoins seems to be extremely promising as it is gaining quite a lot of popularity, adoption and application in real world uses. It is a great investment choice because Bitcoins have a worth which has grown exponentially over the last decade.
This guide on buying and selling Crytpo with eToro is a good starting place if you’re interested in trading Bitcoin.
- Convenient and Secure
Another amazing quality about exchanging through Bitcoins is that transactions can take place in a matter of seconds which is very convenient. Additionally, it is also quite secure because there is no third party involved.
- They are Scarce
Just like real world items of value and commodities such as gold, Bitcoins are scarce. This means that they do not have an infinite supply which can lead to increases in the value of Bitcoin.
The Basics of Bitcoin – Conclusion
This is the necessary information needed to have a basic understanding of Bitcoins.
Now you know why people are so compelled towards purchasing Bitcoins, why they are considered such a good investment and why they are used by many around the world for easy and secure transactions.
We hope this article provided you with adequate information necessary to understand Bitcoins, their value and we hope it helps you make a well-informed and fruitful decision regarding your investment choices.