Uses of Bitcoin
Bitcoin, in other terms, refers to currency that is created and used electronically. While other forms of currency such as dollars can be printed and controlled, bitcoins can’t. The main use of this type of currency is to buy goods electronically. What sets this kind of currency apart from other types of currencies is that it is decentralized. Big institutions such as banks cannot claim any control over bitcoin network. While bitcoin is based on mathematics, other conventional currencies are based on either silver or gold. One needs to have a software that follows a certain mathematical formula for producing bitcoins. This software is an open source and the formula is made available to anyone who wants to use it.
Unlike other forms of currency, bitcoin is very easy to set up. Whenever one is trying to open a bank account, they are taken in circles by conventional banks. Bitcoin on the other hand helps one to set up a bitcoin address within no time without being charged any fees or being asked questions. Any user of this currency can open up multiple addresses while maintaining their anonymity. Your identifying information such as address or name isn’t linked to these addresses. Bitcoin however keeps a record of every transaction that takes place within the bitcoin network. Anyone can tell the number of bitcoins stored in a specific address if one publicly uses them.
One more advantage of using bitcoin is that it is very cheap and affordable as one isn’t charged a dime when performing any transaction. Another benefit is that one can send money to any location and it arrives within a short period of time making this currency very reliable. As soon as the payment is processed, the money is able to get to the recipient. Another feature of bitcoin is that it is non-refundable. After sending the bitcoin, the only way one can be refunded is when the recipient chooses to send it back.
Bitcoin is becoming more and more popular as most businesses are using it for various activities and transactions. Distance or time is irrelevant when it comes to using bitcoin as it doesn’t affect the transfer rate. Since users can encrypt this kind of currency, all transactions that are conducted through bitcoins are safe. Since every transaction involving bitcoin happen online, they are well documented.
Users of bitcoin enter into some kind of competition whereby they offer computing power to verify as well as record bitcoin transactions into the block chain. This process is called mining and users who prevail are awarded with new bitcoins and transaction fees. Bitcoins can be exchanged for products, services and other forms of currencies as well.