Transferring money online has become very easy in the last decade. Whether you need to buy something or simply make a transaction, there are millions of ways to do it. But what has been popular in the last couple of years is cryptocurrencies as a digital form of money.
Bitcoin is one of those cryptocurrencies. It is a digital, online form of money that you cannot hold in your hand like a traditional bill or coin. Instead, you have a digital wallet that keeps your digital money in it. Bitcoin, or BTC, is basically a virtual currency controlled by any bank or government.
BTC, like any other currency, has its own value that is relative to different currency values. Although the price of bitcoin is changing, today, one BTC is about $11 000. But nothing to worry, this cryptocurrency can be divided into small units where the smallest one is 0.00000001 BTC.
Everyone can invest in bitcoin without spending too much money. How come it's an investment, you may ask? The value of bitcoin can change daily, like any other currency value.
Therefore, when its value is low, you can buy it and profit by selling it when it goes up. Follow the link to learn more about bitcoin units: https://www.bustle.com/p/what-is-bitcoin-cash-why-is-everyone-freaking-out-about-it-right-now-7647024.
How does Bitcoin work?
Complex computer and math engineering principles are protecting the source code of BTC. This makes the code impossible to hack and manipulate. Advanced algorithms are implemented, so there is no duplication of the BTC units and creating false ones.
This means that as many users start buying BTC, the more complex algorithms should be made to protect this cryptocurrency's code and uniqueness.
Miners are a group of people who produce new BTC units and record every transaction. These miners create the so-called blockchain.
Every group of the recorded transaction forms a block. Periodic repeating and creating a new block forms a blockchain. New transactions make this chain grow exponentially. So, this means that the miners who are improving the bitcoin software's job can never lose their job.
What are BTC Exchanges?
When you buy bitcoin units, you possess a type of virtual money. You can use it to buy things online,
pay, transfer money all around the globe but also change it for something else. Some exchanges allow you to change your units for traditional money.
If you have invested in it for a long time, and you want to exchange your bitcoin units for fiat currency, you can do it with these types of sites. For example, bitcoin units can be exchanged for U.S. dollars or euro. You can learn more from the CoinIRA review for buying BTC units.
Before deciding on which exchange site you will do the conversion, do a little research. There are different fees depending on the site policy. Usually, the fees are a lot smaller than those the bank offers to make a money transaction.
Nevertheless, you need to analyze the market to make sure that you are investing in the right time. So why is investing in bitcoin worth it?
Accepted as a payment method
Before bitcoin could be accepted as a payment method, it existed just as virtual money that couldn't be spent anywhere. Luckily, nowadays, because of its useful features and low transaction fees, many businesses are used as a payment method.
There are numerous sites where you can purchase goods in exchange for BTC units. If you want to reduce the exposure to traditional currencies, the BTC payment method is the right thing to do.
Ease money transfer internationally
If you live in China and want to make a money transaction to the USA, you may encounter several problems. First, choose the bank that will make the transaction possible. Second, and the most important one, if you want to transfer a higher amount of money, you will spend a lot on transaction fees.
And at the end, you may end up not sending the whole amount because there are limits to how much you can transfer. With BTC, there is no limit on how many units you can transfer. Also, you can transfer it wherever you want.
Banks may not work on a holiday or at weekends, or even after 4 pm, but a transaction with this type of cryptocurrency can be made throughout the entire day, any day of the week. You will pay lower international fees compared to the ones you would pay when doing a bank transaction. Learn more here.
Published: Sep 16, 2020
When you have a certain amount of money in a bank account, you can never be to private about it. That amount of money is associated with you, and public authorities keep track of how much you earn and spend.
Furthermore, any hacking of the bank system can lead you to the complete loss of your funds. Bitcoin allows you to have your privacy. Because it is not run by the government and other authorities, your earning and spending are only under your supervision.
Your wallet address is public, so the transactions can be made. But your private information is hidden from the rest of the world. This means that you can see the transaction that everyone has made, but you cannot see who made them.
Additionally, the lack of political influence can never freeze nor block the units of BTC. So, extending the number of units will not impact any holders of BTC whatsoever.