What is Bitcoin?
Bitcoin is an electronic currency or cryptocurrency that cannot be tracked and is only available digitally. It was founded in 2009 by Satoshi Nakamoto or possibly by a group of anonymous people.
How Bitcoin Works?
Bitcoin is digital money that is exchanged online via users computers through a term called cryptography. Cryptography is a secure secret hidden transaction via the internet.
Furthermore, all transactions are anonymous and Bitcoin was designed not to dish out more than $21 million Bitcoins in a lifetime. Bitcoins are mined and obtained using your computers mathematical ability in a network of Bitcoin miners.
Moreover, there are dozens of cryptocurrencies but Bitcoin is the most accepted globally and the most popular cryptocurrency. It first started out as a free open source software.
Bitcoins is dough, racks, or pesos. It’s just digital dough. The only difference is instead of a government regulated bank keeping your money, a computer keeps your money. It’s held in a digital account called a wallet.
What is a Wallet?
A wallet is a software that allows people to store, receive and send crypto currency like bitcoins. You must have a wallet to do any transactions with cryptocurrency. Bitcoins can never be counterfeited unlike some government-issued currency, and no bank, government agency controls it. Bitcoin payments can’t be blocked.
On the movie ‘Dope’ featuring Zoe Kravitz, the main storyline was about a group of friends hustling and selling dope through Bitcoin. They used Bitcoin because they could not be tracked easily. Bitcoin transactions are supposedly completely untraceable.
How To Get Bitcoins?
Moreover, you can also sell an item and get Bitcoin instead of cash. Another thing is Bitcoins can also be converted into cash by such companies as Coinbase who will pay you cash for your Bitcoins.
How to spend Bitcoins?
International payments are instant with Bitcoin with very small international transfer fees.
How are transactions logged?
Transactions are logged by your key number you receive when you obtain a wallet. You do not use your name.
Downfall of Bitcoins:
1. First, say your computer crashes or you get a virus that corrupts your data and even the Bitcoin wallet. You lose all your Bitcoins.
2. Secondly, if more businesses don’t accept Bitcoins it won’t be a good currency substitute.
3. Thirdly, if you buy something online and you never get it, unfortunately, bitcoin transactions are irreversible. To be on the safe side know who you are doing business with.
4. Lastly, there is no guarantee of Bitcoins value because no central bank is overseeing bitcoin transactions.
Watch the Movie ‘Dope’