Uses of Bitcoin
A form of digital currency that is made and used electronically is referred to as bitcoin. Unlike dollars or other forms of currency, bitcoin cannot be printed and neither can it be controlled by anybody. Bitcoins are mainly used by people to purchase items electronically. As compared to conventional money, bitcoin is usually decentralized which is what sets it apart from other currency. Big institutions such as banks cannot claim any control over bitcoin network. Bitcoin is based on mathematics unlike conventional currency which is based on silver or gold. There is usually a software that contains a math formula which is used during the creation of bitcoins. This software is an open source and the formula is made available to anyone who wants to use it.
Unlike other forms of currency, bitcoin is very easy to set up. Conventional banks take most people in circles whenever they are trying to open bank accounts. However when it comes to bitcoin, one simply sets up their bitcoin address within a short period of time without having any questions asked or fees charged. Any user of this currency can open up multiple addresses while maintaining their anonymity. These addresses aren’t linked to any addresses or names or other identifying information. Bitcoin however keeps a record of every transaction that takes place within the bitcoin network. Anyone can tell the number of bitcoins stored in a specific address if one publicly uses them.
Bitcoin is a very cheap way of transacting as one can perform any transaction without being charged a dime. Using bitcoin is very reliable as one can send money to any part of the world and it arrives within a few minutes. The bitcoin network is responsible for processing the payment for it to get to the recipient. One more characteristic of bitcoin is that it is usually non-refundable. One cannot get the bitcoins back after sending them unless the recipient chooses to send them back.
When performing various activities, businesses are using bitcoin. By using bitcoin, distance or time doesn’t affect the transfer rate as the user can transfer the bitcoins within a very short time. Each and every transaction conducted through bitcoin is very safe as it is encrypted. There is proper documentation of all transactions involving bitcoin as they all take place online.
Creation of bitcoin acts as a form of reward during a competition whereby users offer computing power to record and verify bitcoin transactions into the block chain. This process is referred to as mining and those who are successful at it are rewarded with new bitcoins and transaction fees. One can use bitcoins to exchange them for other forms of currencies, services or products as well.
Recommended reference: see this website