All You Need To Know About Bitcoin
Are you someone who fails to understand the concept of Bitcoin? If you said yes, then you are not alone. The concept has been in existence for several years but it is still not well understood. Do you also have similar questions such as are they legal? Where do they come from? Why are they split into Bitcoin cash and Bitcoin? Where can I get them from? We will help you get an answer to all the question that you may have regarding Bitcoin? So let’s start right away!
What is Bitcoin?
Bitcoin first appeared in 2009 and was the first Cryptocurrency that has ever been invented. It was developed by Satoshi Nakamoto who has since disappeared but left a wealth of Bitcoin fortune.
A Bitcoin or BTC, more commonly used shorthand for Bitcoin, is a digital token that can easily be sent from one user to another user, around the globe. You can even send someone 0.00000001 Bitcoin as it can easily be divided out into eight decimal places.
Does it get confusing? Well, it generally does because Bitcoin is also the payment network name where the Bitcoin digital tokens are moved or stored. This payment system is not run by a single person or a company; rather, it is run by decentralized networks of computers present around the world which keep a track of all the transactions.
Bitcoin is trending these days because a large number of companies are accepting them as a legitimate source of funds. You can compare them to the virtual cash stored in online wallets which are often used to buy or pay for services through the WWW world.
While the money stored in the online wallets are recognized and backed by a government body, Bitcoin is decentralized and thus people often have doubts about it. However, Bitcoin can be used to pay for or purchase services and can even be used as an investment tool and a lot more.
Advantages of Using Bitcoin
- Bitcoin gives you the freedom to send and receive money from anywhere in the world at any time.
- You are in complete control of your money with Bitcoin as it is a decentralized system.
- Merchants cannot charge any extra fee without informing the consumer.
- Your personal information and your money stay safe as you will be using anonymous Bitcoin addresses without revealing your identity.
- You can easily encrypt and back up the Bitcoin to safeguard your money.
- While the personal information is hidden, all the finalized transaction are available for everyone to see which promotes transparency.
- No person, government or organization can manipulate the Bitcoin protocol as it is cryptographically secure.
- There is no fee attached to Bitcoin payments. International payments also do not attract any fee.
Disadvantages of Bitcoin
As with the advantages comes the downside too. Some disadvantages of using Bitcoin are:
- As they do not carry any personal information, therefore, the transaction cannot be reversed.
- If your wallet is hacked, you don’t get any liability protection.
- They fluctuate a lot and you have to deal with their volatility.
- The concept of Bitcoin is not yet popular and people are still unaware of digital currency.
- It is still in its infancy stage and there are a lot of developments yet to be made.
Who accepts Bitcoin?
Being one of the largest and the most known digital currency, Bitcoin is being accepted by a large number of companies as a legitimate source of funds. Who are these companies which are accepting Bitcoin?
There are a large number of websites that accept Bitcoin, they are:
- WordPress – An online company that gives people a chance to create free blogs
- Microsoft – You can easily buy content on Windows store or Xbox with Bitcoin
- NameCheap – This domain name registrar also let people buy a domain with Bitcoin
- Overstock – Shop big-ticket items at a lower price with Bitcoin
- Gyft – You can easily buy gift cards using Bitcoin
- Bitcoin.Travel – Travel the world by paying for your accommodation using Bitcoin
- PayForCoins.com – Pay for your Dominos pizza using Bitcoin
- BitcoinCoffee.com – Order your favorite coffee online and pay using Bitcoin
- Shopify.com – Sell your products by designing your online store at Shopify
There are a large number of other stores that accept Bitcoin as the payment method.
What Can You Buy With Bitcoins?
If you are thinking, “Where can I use Bitcoin ?”, there are a number of things that can be purchased with Bitcoins. While we have listed a few companies above where Bitcoin is accepted, here are a few things that you can actually purchase with your digital currency.
- Buy Games, Apps, and Videos
Microsoft has added Bitcoin as one of the payment methods for a variety of content present across the platform. According to the global computer giant, customers can use Bitcoin to add money to their accounts and further purchase content like videos, apps, and games from the Xbox, and Windows platforms.
- Shop Computers
Dell, a multinational computer technology specialist is in a partnership with Coinbase and thus have started accepting Bitcoin. They have even given an introductory offer where the customer could get 10% discount on high-end computers when a purchase is made through Bitcoin.
- Gift cards
Believe it or not, but websites like eGifter and Gyft are accepting Bitcoin on a purchase of a gift card. These gift cards can be used to make a purchase from a large number of retailers who don’t accept Bitcoin formally. You can purchase Amazon gift cards from them and shop for anything you want from the e-commerce giant.
People were assured of the presence of Bitcoin where they were able to buy Pizza using the digital currency. PizzaForCoins.com makes it possible for everyone to order a Dominos pizza with their Bitcoins. Yes, it really works.
How to use Bitcoin
Bitcoin is the first digital currency in the world that has eliminated the middleman.
Start by finding a good Bitcoin wallet that can conveniently store your bitcoins until you are ready to make purchases with them. As a beginner, you can start with using a simple wallet that will make transfer easy. You can choose between Coinbase wallet, Electrum and Mycelium according to the platform you will be using them on.
The best way to purchase Bitcoin is to use an exchange. Make sure to pick the right exchange as some of them are untrustworthy. Some exchange such as Coinbase, CEX and Bitcoin exchange search can directly turn Bitcoin into cash.
Now that you are ready to shop with Bitcoins, go to the checkout and choose Pay With Bitcoin option. You will be provided with your order information along with their value in Bitcoins. Open your wallet and scan the QR code. Confirm the details and make the payment.
How to Accept Bitcoin?
Confused on how to accept Bitcoin as payment? It is easy to receive Bitcoin as payments. You just need to give out an address and specify how much Bitcoin is the user required to pay. There are plenty of payment processors available and they can easily convert the Bitcoin into regular currency.
Bitcoin does not take away a large percentage of your payments, unlike other payment methods. However, you may be required to pay a very small fee to get the payment processed by the network. You can easily accept payment through Coinbase, Bitpay or manually.
Bitcoin has great potential and it is only a matter of few months before people will start using it. While it is hard to know the future of Bitcoin, it only makes sense to start using this concept as soon as possible. This amazingly flexible digital currency is here to stay and who knows it may change our lives for good.
Do you still have a question on Bitcoin? Want to Know More About it? Check Out Our Other Articles on Cryptocurrency.
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