Bitcoin: What Is It and Is It Real?
In current era, there are various types of wealth that is available in market. People has different kind of ‘money’ out there. One of it is Bitcoin. Ever heard of it? Some people said that it is a form of investment and some people even said if you have a bitcoin, that means you are rich. But what is bitcoin? Is it even a real thing?
Before buying or do anything about bitcoin, you have to understand what is it and how does it work. To know it further, check this out!
What Is Bitcoin?
Bitcoin is a form of digital currency that aspires to eliminate the need for central authorities such as banks or governments. Instead of involving with cash money, Bitcoin uses blockchain technology for the transaction. Through the proof-of-work consensus algorithm used by Bitcoin, it pays bitcoin miners for validating transactions, then transactions are verified.
Bitcoin is launched in 2009 by a mysterious developer known as Satoshi Nakamoto. It was the first and most valuable digital assets known as cryptocurrencies.
How to Use Bitcoin?
You might wonder how does bitcoin work. So, each Bitcoin is a digital asset that can be kept in a digital wallet or at a cryptocurrency exchange. You can possess fractional shares of each coin, but each coin represents the value of Bitcoin’s current price.
A Satoshi, which is also the name of the person who invented Bitcoin, is the smallest unit of currency in each Bitcoin. Due to the fact that each Satoshi is equal to one hundred millionth of a Bitcoin, fractional ownership of Bitcoin is quite common.
Then you might wonder how to use bitcoin, right? In United States, people generally use Bitcoin as an alternative investment, helping to invest apart from stocks and bonds. In some vendors, you can even use Bitcoin to make purchases. Big companies that accept Bitcoin are Microsoft, PayPal and Whole Foods. Some small local retailers or certain websites do take Bitcoin, but you’ll have to do some research first.
Additionally, there are services available that let you link a debit card to your cryptocurrency account, enabling you to use Bitcoin similarly to how you would use a credit card. So it involves a financial provider instantly converting your Bitcoin into dollars.
Bitcoin provides an ability to store value without relying on government currency. It offers people the chance to protect themselves in case the worst happens, such as an extreme indebted countries situations like Venezuela. But when you use bitcoin as a currency, you have to be aware of certain tax implications in certain country.
Is Bitcoin Valid?
Whether or not you can use Bitcoin depends on which country you’re in. As what you can see, there are several people has done their transactions with bitcoin. That means it proves its credibility. But actually, it depends on each country’s laws. But bitcoin can be used anonymously for transactions between any account holders worldwide. You just need to make sure the transactions approve bitcoin as the medium.
Should You Buy Bitcoin?
Now you have understand about bitcoin. Even though there are some people that earns profits with bitcoin, but you should research everything before buying it. It has its own risk and it does not guarantee you to be rich in instant. It requires a research and a lot of consideration. Make sure you are aware on how it works and the calculation of its value first. Deciding whether to buy it or not, it’s on your hands. You have to consider your personal finance condition and the market research. Hope this article helps you to understand about bitcoin!
