What You Need to Know About Bitcoins What is it? Bitcoin is a popular type of digital currency. It was launched in 2009 by an unknown individual going by the alias Satoshi Nakamoto. No middle men or banks are needed for transactions, and you do not need to give your real name when conducting Bitcoin transactions. What is it used for? Bitcoins are used to buy and sell anonymously. They are preferred over other payment methods because they are offer anonymity and privacy in addition to being completely free of charge. Moreover, some people actually buy them as an investment hoping that their value will increase over time. How can I get it? There are several marketplaces, referred to as “bitcoin exchanges” where people sell or buy bitcoins, and different currencies are accepted and traded. In addition, there is now a growing number of bitcoin ATMs where users can trade cash for bitcoins at a fee. Bitcoins are stored in digital wallets. During a purchase, the buyer sends a payment to the bitcoin address of the seller; an e-receipt is issued to both parties. Every time a transaction is made, it is recorded on a public ledger known as the Block Chain – this is shared among all Bitcoin users. Who regulates it? Both the Bitcoin payment network and the currency are decentralized, which means that there is no central body that creates, regulates or controls the currency. Because they are not associated with any country or subjected to any form or regulation, international payments using bitcoins are both easy and cheap. There are no transaction fees, and more merchants are beginning to accept them, from webhosting services to pizza orders. However, because it is mostly unregulated, no one knows what will become of the online currency. Governments are particularly concerned about taxation as well as the lack of control over this new currency.
Posted on: Wed, 23 Jul 2014 17:00:01 +0000
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