Understanding How Bitcoin Works


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. Bitcoin transactions are completely untraceable.

How To Get Bitcoins?

Bitcoins can be brought from exchanges. You can also buy them for cash from someone or from online businesses like Paxful, Coinbase or Bitbrothers.

Moreover, you can also sell an item and get bitcoins 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?

Buyers and sellers can easily exchange transactions through their computers. Also, many companies like overstock.com, WordPress.com, Reddit, Square all take bitcoins for payments.

International Payments:

International payments are instant with bitcoins. There is huge wire transfer fee and transactions are logged by your key number and not 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.

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

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