Bitcoin is a virtual currency that is traded peer-to-peer securely and instantly. There is no central government, bank or entity that controls bitcoins. Bitcoin is an open-source project where anyone is able to access the platform, this allows for open software development as well as an accurate accounting for all transactions. Though Bitcoin is gaining wider acceptance, there is still a great deal of uncertainty about its future. I want to
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How Do You Get Them?
You can get bitcoins by buying them from a bitcoin exchange or by mining them. Mining them involves solving complex math problems using advanced hardware and special computer software. As you solve these math problems you earn bitcoins. Bitcoins are then stored on an owner’s computer or cell phone through a digital wallet. This digital wallet acts like a bank where you can transfer bitcoins to other people, purchase goods and services or just save them.
Who Takes Bitcoins?
Some online and brick-and-mortar stores take bitcoin payments. Since the transactions are peer-to-peer there is often no fees, making bitcoins a very popular form of payment over credit cards. Since bitcoins operate on an open-source project, all transactions are public, though buyer and seller’s names are not revealed. When a transaction is made the virtual currency and personal information are encrypted for privacy and only a bitcoin user’s wallet ID is displayed.
What Are the Cons?
There are some challenges to bitcoin as a common currency and there is
always risk when it comes to monetary exchanges. Since the system is very anonymous it does pose a problem with people buying contraband or conducting illicit activities. A user can accidently delete their wallet or encounter a virus that destroys their bitcoins. Many see bitcoins as a highly speculative market and this causes volatile price swings. Some governments have banned bitcoins all together and others want to regulate them.
Bitcoin’s Current State
Since this is a new currency, there is a lot of speculation and uncertainty about Bitcoin. Many people don’t know what a bitcoin is or how it is used, but acceptance of bitcoin as a currency continues to grow. Recently several large companies started using bitcoins as a form of payment, such as Expedia, Dell.com and airBaltic. There have been many big online platforms that have failed in the past and Bitcoin could be next. As globalization becomes the standard, the need for an efficient currency will follow, but it may be too soon to tell if Bitcoin is it.
