What is bitcoin? Bitcoin is a currency, like a euro or the US dollar, used to exchange goods and services. However, unlike other currencies, Bitcoin is an electronic currency that presents novel features and stands out for its efficiency, security and ease of exchange.
Its biggest difference compared to other currencies is that, it is a decentralized currency, so nobody controls it. Bitcoin does not have a central issuer like dollars or euros, the cryptocurrency is produced by people and companies from around the world devoting a lot of resources to mining.
If you already know what bitcoin is and what you are looking for is directly buying bitcoins, here is an entry on the web that explains it. Let’s go with the guide.
What is bitcoin? In this guide, you will learn.
To choose between the different types of Bitcoin wallets that exist, to be able to explain how Bitcoin works, its different types of addresses, in addition to having at your disposal a page of frequently asked questions and a Bitcoin blog where, on a regular basis, you are commenting the latest events of the most famous virtual currency.
Benefits and advantages of Bitcoin
Currently, it is the most widely used digital currency in the world and there are good reasons why it is becoming increasingly popular. Both private users and sellers and business owners find in Bitcoin important advantages that have led them to adopt this system.
Let’s see some introduction features to Bitcoin:
- It does not belong to any State or country and can be used all over the world equally.
- You can buy bitcoins with euros or other currencies and vice versa, like any currency.
- No intermediaries: Transactions are made directly from person to person.
- It is decentralized: it is not controlled by any State, bank, financial institution or company.
- Its falsification or duplication is impossible thanks to a sophisticated cryptographic system.
- The transactions are irreversible.
- It is not necessary to reveal your identity when doing business and preserve your privacy.
- The money belongs to you 100%; it cannot be intervened by anyone or the accounts can be frozen.
I’ll show you how, in a way, Bitcoin resembles the cash we all know. In addition to presenting many of the characteristics of this well-known physical medium, by using it we always maintain control of our funds. Additionally, we also have many of the advantages that the digital medium offers us: it is immediate, it can be sent anywhere in the world, etc.
Virtual currencies lower costs by eliminating intermediaries completely.
To this day it is still very common that sending money anywhere in the world entails significant fees or commissions due to a large number of intermediaries in the process. This includes Commissions by bank transfer, commissions for accepting or using credit or debit cards, commissions for using “sending money” services or commissions for using “online payment” services.
In Bitcoin, there are no intermediaries and the money goes directly from person to person: from buyer to seller or from private to private. This reduces the price of sending money substantially and also allows you to sell products and services at a fairer price.
Bitcoin offers security to the buyer and the seller.
Historically all means of payment or valuables have had security problems. Computer problems have caused the theft of thousands of credit card numbers, leaving unprotected buyers who have suffered significant losses. When we make purchases with Bitcoin we do not have to reveal sensitive information such as credit card numbers or bank accounts and therefore there is no risk of this information being stolen from the online seller.
Bitcoin is also preferable to other online collection systems, especially for the seller. Bitcoin transaction fees are very low and there is no risk that fraudulent buyers and scammers that reverse the payment, staying with both the product and the money.
Finally, the characteristics of this virtual currency allow the pages to establish a trust service (escrow), ensuring that the seller only receives the money if the product has successfully reached its destination. This is frequently used in auction pages and sale of second-hand products.
Virtual currencies are a market that never stops.
The price of Bitcoins is something that never stops, proof of this is that their market is negotiated 24 hours a day, 365 days a year.
Bitcoin is fair.
In many traditional systems we find that sending money is much easier than receiving it. This makes it difficult to create new businesses and online stores. However, with Bitcoin, both options are just as simple and anyone can send and receive money without any type of restriction. Also, if you own a business, both digitally and physically, it does not cost anything to start accepting bitcoins.
Your bitcoins are only yours.
The decentralized system behind the bitcoins makes it impossible for any other person who does not have credentials to access your money. Your bitcoins are yours and can not be frozen or hijacked, you cannot close any account and only you have access. This aspect is for many people perhaps the most important: to really feel that they own their money and be sure of it.
Bitcoin is democratic: the economy of the people.
When we say that Bitcoin is decentralized and that there is no institution, company, State, body or association behind it that controls it, it is literally like that. It is not a metaphor, but really the computer system of today allows the creation of this safe and reliable digital currency that favors free economic exchange between people around the world.