Bitcoin was launched in 2009 as a private initiative. Unlike traditional currencies such as the euro, the pound and the dollar, it is not controlled by the central monetary authority. Instead, it is supported by a peer-to-peer network of its user computers. This is similar to the operation of the video chat service Skype. The
Bitcoin was launched in 2009 as a private initiative. Unlike traditional currencies such as the euro, the pound and the dollar, it is not controlled by the central monetary authority. Instead, it is supported by a peer-to-peer network of its user computers. This is similar to the operation of the video chat service Skype.
The basic unit of value is bitcoin. However, each bitcoin can be subdivided into satoses. Satoshi is equal to one percent of Bitcoin (ie, bitcoin is divided into eight decimal places).
Bitcoin and satoshi can be transferred from one Internet user to another, paying for goods or services almost free of charge. This allows you to make international transfers without worrying about exchange rates and expensive bank fees. Bitcoin can be bought and sold in traditional currencies through special bags.
To use Bitcoin, you need a wallet, a special piece of software where you can store, send and receive bitcoins. There are three types of portfolios: software portfolios, mobile portfolios and online portfolios.
The software combination is installed on your computer, giving you complete control over your wallet. Mobile Wallet is installed on your smartphone or tablet, and you can use Bitcoin to scan daily transactions in stores and supermarkets by scanning the Quick Response Code (QR). Web product portfolios are on the World Wide Web, which means they are a form of storage in the cloud.
Paying with bitcoin is very easy. Simply enter the recipient’s address, quantity, and press “Send” to create them from your wallet on your computer or smartphone. The smartphone can also obtain the address of the recipient by scanning the QR code or carrying two phones with Near Field Communication (NFC) technology, which is a form of radio communication that is close to each other. Alternatively you can use Bitcoin Cash ABC.
Receiving payments is equally easy… just give your Bitcoin address to the payer.
Protect your wallet
A bitcoin wallet is like a wallet full of money. To reduce the risk of loss, you should keep a small amount of bitcoin on your computer or smartphone and keep most of the bitcoin in a safer environment, such as an offline wallet. As long as your wallet is encrypted, if your computer or smartphone is stolen, you can use offline backup to recover it. Encrypted wallets allow you to set a password that you must enter in order to withdraw funds. However, if lost, the Bitcoin password cannot be recovered. That’s why you must be absolutely sure that you can remember your password. If the value of Bitcoin is important, you can store it in a bank vault or store important files anywhere. To be as secure as possible, you need to store offline backups in various ways, such as USB drives and CD drives. Since Bitcoin runs on software that you download to your computer (desktop or laptop) or smartphone, you need to periodically update this software to protect your wallet and transactions.
The advantages of Bitcoin.
Bitcoin has several significant advantages:
- You can send and receive unlimited amounts of money from anywhere in the world, anytime, anywhere.
- point treatment is free of charge and no fee.
- bitcoin transactions are irreversible, protecting sellers from fraudulent refunds, and these credit cards are becoming more common
- The payments are made without exchanging personal information, which is an effective protection against identity theft.
- The receipt and payment process is completely neutral, transparent and predictable.
Shortcomings of Bitcoin
However, the use of Bitcoin has several drawbacks:
- They are not yet universally accepted and therefore cannot be used anywhere.
- Its value is fluctuating because the amount of bitcoin in circulation is very small, so relatively small transactions can significantly affect its price.
Do you have to use bitcoin?
The short answer is no, or at least not important. Bitcoin is an alternative asset with durability, portability, separability and rarity, that is, they have all the characteristics of traditional currencies (euro, dollar, pound, etc.). They have value and can be exchanged for other currencies in the bag. Alternatively you can use Bitcoin Cash ABC. Sometimes the value of Bitcoin can vary greatly, from 50% of the day. Therefore, as a value store, they do not mean the weak. In other words, you shouldn’t have to lose more money in the form of bitcoin. However, a portfolio of small bitcoins can be used for small daily transactions, which will help you become familiar with the internet currency. As the number of circulating Bitcoins increases, their value, other currencies should stabilize, and you can start using them for larger transactions.