Bitcoin is a monetary system where you can own a virtual digital currency called Bitcoin at will and transfer it online as you wish. But in this case there is no need to go to any bank or any other type of clearing house. There is no need for any central authority to look after the account balance. No one controls it. Bitcoin is created and retained electronically. Satoshi Nakamoto, a software developer, proposed Bitcoin as an electronic payment system based on a mathematical program. This is his pseudonym. At the heart of his idea was to create a currency that would be free of central authority, electronically accessible and more instantaneous, and would transact at a much lower cost.
Bitcoin is not a printed note or physical currency like dollar, euro or money. Bitcoin is created digitally. Therefore, there is no existence of any person or organization in charge of printing. A large number of people around the world use computers to produce these bitcoins. Anyone can join this bitcoin community. Bitcoins are mined using computing power on a distributed network. This network processes bitcoin transactions efficiently. In this case, they use software that is able to solve mathematical problems. It is a growing type of currency, known as cryptocurrency.
Bitcoin is a digital virtual currency that you can transfer via the Internet. No other currency can be transferred in this way. With the help of the net, one person can send bitcoin to another person. This means the cost of sending bitcoin is lower. You can send this currency to any country without hiring any kind of representative or intermediary. That is why Bitcoin is the world's first decentralized digital currency.
Many things can be bought electronically with Bitcoin. In this regard, it is the same as the conventional dollar, euro, yen and our money. These are also traded digitally. However, what distinguishes Bitcoin from all other conventional currencies we know is that it is decentralized. No single entity controls the Bitcoin network. It makes some people comfortable. Because no big bank can control the money of these people.
The basis of conventional currency is gold or silver. Theoretically, if we return to the central bank of a particular country the currency of that country - dollar, euro, yen, rumpani, taka, etc., then that central bank is obliged to return the equivalent gold or silver, even though it has no practical practice. Whatever he is, Kitcoin is not based on gold or silver. Rather it is mathematical. People around the world are using software programs to create bitcoins following mathematical formulas. This mathematical formula is available for free. Anyone can check it out. Its software is also open source.
Features of Bitcoin
First, it is decentralized: no central authority controls the bitcoin network. Every bitcoin mining and transaction processing machine is part of this network. All machines work simultaneously. This means that, in theory, a central authority cannot be reckless with monetary policy. Unlike the conventional central bank, bitcoin cannot be taken away from the people.
Second, it’s easy to set up: to open an account with a conventional bank you have to go through several loops. Opening a merchant account to pay off debts is another hassle. There are bureaucratic hurdles. But you can set up a bitcoin address in a few seconds. No one will ask any questions. There is no fee.
Third, it is anonymous: users can hold multiple addresses. It does not require any name-address or any contact information about the person.
Fourth, it is completely transparent: the details of every single transaction or transaction occurring on the Bitcoin network are stored in a comprehensive general ledger version. The name of this general ledger is Bosnakchain. Bosnakchain tells us everything. If you have a publicly used bitcoin address, anyone can tell you how much bitcoin is stored at this address. But they just don't know, this address is yours. With this system, anyone can hide their activities on the Bitcoin network. For example, he may not continue to use the same bitcoin address. You can't even transfer a lot of bitcoin from a single bitcoin address.
Fifth, the transaction fee is very low: for an international transfer from a bank, where the fee may be a thousand rupees, there will be no fee for Bitcoin.
Sixth, it's fast: you can send money anywhere with Bitcoin. Bitcoin will reach the recipient within minutes of processing.
Seventh, it is undeniable: once someone sends Bitcoin, there is no chance of getting it back, unless the recipient returns it himself. Assuming, the money sent has gone to the expense book.
Which can be bought with Bitcoin.
Although Bitcoin has not yet been introduced in our country, more and more merchants in other countries of the world have started accepting Bitcoin as the price of their products and services. However, the best place to get these merchants is the marketplace and aggregator sites. A large number of support organizations collected on these sites are available together. There are many types of patients - online and offline. You can spend your bitcoin by visiting these places. It is not right to think that the touch of technology will not reach us soon.
Bitcoin Gambling Site: One of the biggest destinations for People's Bitcoin is online gambling. Simply put, online gambling. Just as quick income can be made through this, so can losses. Betting can be started with relatively small numbers. Properly covered, it will withstand a great deal of adverse conditions. satoshiDice is a popular online gambling site along with. Users mail money to any one of the set addresses. In return they get a payout based on the chances of winning the bet. Other sites include Chabatib, which accepts cryptocurrencies in addition to Bitcoin. Other such sites include Just-Dice, Betcoin Dice and Satoshi Circle.
Buying physical products with Bitcoin: Bitcoin is very suitable for buying online services. That's not to say you can't buy physical goods with Bitcoin. There are various types of sites that sell physical goods, although they mainly collect their dues through the internet. Some directories are available online. These include a long list of merchants who accept bitcoin. However, after some more research, you can find out that these sites have tested bitcoin as a payment option, but it is no longer used. Similarly, they are selling a limited number of products in a geographical area.
Sometimes a place you can find, which will accept the bitcoin you want to spend. Usually someone wants to buy a product, where his expectation would be to accept bitcoin in exchange for the merchant's product. We are still far from that kind of utopia. For those who don't want to list hundreds of products they need, there are alternatives. There are many general e-commerce sites, selling many products of a particular type or category and offering cross-category sales.
Bitcoinshop.us offers the opportunity to purchase a wide range of products from air conditioners to watches. All products are priced in Bitcoin. It is only selling products within the Americas. BitcoinStore sells electronic products. They send the sold goods internationally. But before ordering, you need to check the shipping cost to send to your country. Memory Dealers carry a wide variety of networking equipment and computer memory. It was a bitcoin receiver from the beginning. There are also some local e-commerce sites in different countries that accept bitcoin. For example: Keystone Pet Place in the United States provides your pet needs. Coffee will be shipping to you from Bali Island, Indonesia. And Persian Shoes is selling you handmade shoes and bags from Iran. In addition, many merchants are just taking bitcoin from you, not taking or can not take any flat currency. The good news is that hundreds of small retailers are now accepting bitcoin.
Bitcoin Giftcard: If you do not find a real store to accept Bitcoin directly, the easiest way is to convert your digital currency into real-world goods and services through Giftcard. There are plenty of business organizations that accept gift cards. These gift cards can be used at several retail chain stores such as Walmart, Target and Nike. For US customers there are many companies like Gyft, eGifter, iTradeBTC I GiftCardZen. Amazon.com has some specialty card stores like GiftcardBTC for Giftcards. There are some exceptional bars and resorts where bitcoin is accepted. If you want to spend your digital currency on a plate of fish-rice, chips or cold-beer, then you can easily know where to go.
Bitcoin.Travel is a prestigious site. It presents you with a long list of places to stay, apartments, attractions, bars, restaurants and beauty salons around the world. Coinmap has a global travel establishment database. If you lived in London you would be familiar with the Pembury Tavern, and if you lived in Sydney you would be familiar with the Old Fitzroy bar. You will get the opportunity to eat bitcoin in Japan from The Pink Cow. There are many more ways to buy food and drink with Bitcoin, even if you do not accept Bitcoin directly at restaurants. The Foodler site offers the opportunity to browse and order food from 13,000 restaurants in 3150 cities around the world. In exchange for Bitcoin you can get Bitcoin Credits, which can be used at any of these restaurants. Interestingly, we are seeing a lot of new bitcoin-friendly companies.
Online Bitcoin Marketplaces and Auctions: Another way to spend bitcoin is through online marketplaces. These are effective clearing houses. These can sell products to anyone. Its start is through the underground market place. The Silk Road allows people to use Bitcoin to sell illegal goods and services. This site can only be accessed through Tor Anonymous or anonymous browsing system. The Silk Road was reopened a month after it was closed in October 2013. If selling illegal products and services is not your job then there are many more legitimate marketplaces where you can spend bitcoin. Most of these marketplaces are now at the commitment stage. A limited number of products are still being sold in these marketplaces. Bitcoin Market and Cryptothrift are category-driven sites, although they are not yet very popular. Flibbr will give you limited product search by name. reddit has a sub-thread called Bitmarket, which allows people to list their products as a reddit post. Many more specialized sites are coming. BitPremier will sell high quality luxury items with Bitcoin using an escrow service. Through it you can buy luxury cars, pleasure boats, heritage products, works of art and even an island.
Online Bitcoin Service: There may be no need for a technical no-how about Bitcoin. Because Bitcoin has already garnered a lot of support from the online services community. Hosting companies in particular have become interested in offering bitcoin exchange space on your website or server. The Bitcoin wiki has a list. wordPress is one of the most visible and popular sites. This will give you the opportunity to have a bustling presence online for cryptocurrency payments. You can go to BitcoinCodes to buy credit for Stan, Spotify, XboxLive, PestStation Network and AirVPN. Namecheap accepts Bitcoin directly to purchase domain services. If you want a little more privacy online, some VPN (Virtual Private Network) providers now only accept Bitcoin after getting boscoded from some credit card companies and PayPal.
Donate Bitcoin for charity: If you want, you can donate Bitcoin for any charity. For example, you can donate Bitcoin to The Sri Lanka Campaign for Peace and Justice, a London-based NGO dedicated to the cause of justice, human rights and assistance to vulnerable people. Or Bitcoin can be donated to Sean’s Outpost, a shelter for the homeless in Pensacola, Florida. Apart from that, anyone can give Bitcoin rewards for any good deed or opinion.
The way Bitcoin can be bought Surely you have come to realize that Bitcoin is the way of the future. So the next step is: How to get bitcoin? Below is an attempt to give him a guideline.
One. Where to Buy Bitcoin: From regulated exchanges or directly from people who sell bitcoin. You can pay for Bitcoin in different ways. This payment can be made through wire transfer starting from hard cash, but it will depend on who is buying bitcoin and where you live. Surprisingly, it is almost impossible to buy Bitcoin with a credit card or PayPal. This is because such transactions can be easily changed by making a phone call to the card company. Such as ‘chargebacks’ is a problem that Bitcoin cannot solve. Since it is very difficult to prove the exchange of goods in the case of bitcoin transfers, bitcoin exchanges avoid these payment methods. Most private sellers of Bitcoin do the same thing.
Two. First of all, take your wallet: a place where you can deposit your new bitcoin. In the world of bitcoin, its name is wallet. You can think of this wallet as much like a bank account. Here are two options: 01. A software wallet or 02 stored on your computer's hard drive. A web-based online service. Both options have some criticisms. If Bitcoin is stored locally on your computer, you are regularly backing up your hard drive in case of a crash. And online wallets are engaged in different levels of security. Security may be adequate or inadequate. It's up to you - you rely more on good security or poor security. CoinBase is a popular wallet service. It also trades dollars for bitcoin. It has web and mobile (Android) apps. blockchain.info is another popular online wallet option. It does not exchange any fiat or order. But it only has mobile solutions for Android and OS.
Three. Exchange / Online Wallet: In this case, with the arrival of new businesses in the new market, the scope of options seems to be increasing week by week. There are some full-fledged exchanges for trading between paper fiat currencies and various digital currencies. Other exchanges offer simpler wallet services with limited range of trading facilities. Many exchanges will deposit digital and fiat or ordered currency on your behalf, much like a bank account. If you want to be involved in regular trading and speculation, not to be completely anonymous, then wallets or exchanges are the best option for you. Which is the best option for you also depends on where you are. Among the major flower-trading exchanges accessible to all at this time are: Mt. Gox (Japan), Bitstamp (US), BTC-c (Bulgaria) Ges Kraken (US) BTC China is the largest bitcoin exchange in the world for Chinese Yuan or Renminbi only.
Once you have set up your account, you will probably need to link an existing bank account and make arrangements to manage the funds through wire transfer to this account and your new exchange account. Along with this there is essentially a fee. Some exchanges will give you the opportunity to personally deposit in their bank account (via Human Taylor, not ATM). People in most countries can transfer money to a foreign account.
Four. Warning about exchanges, wallets and banks: Despite the need for identity proof, keep in mind that exchanges and wallets are not regulated like banks. There is no insurance in your account if the exchange is closed or hacked by a hacker. Bitcoin is not a legal tender at all in most parts of the world. And the authorities don't really know how to stop the theft. Some large exchanges have replaced customer funds after the theft, although the exchange is not legally obliged to do so. If a theft from your personal wallet occurs due to your own fault and lack of security and password, there is no guarantee that the funds will be returned. Some banks see digital currency as a threat to their business model. These banks may object to the exchange of special funds. And may close the account without any explanation referring to Bitcoin. So first find out from the list whether your bank is one of these banks or not. For security reasons, open an account with a bank that is bitcoin friendly.
Five. Face-to-face or over-the-counter (OTC) trade: If you live in a big city, want to remain anonymous, or don't want to go to the bank, the easiest way to earn bitcoin is face-to-face with a local trader (face-to-face). -Face) to trade. localBitcoins is the main site where such transactions and decisions are made. This site offers escrow service as an additional layer of protection for both parties. There are security considerations for both buyers and sellers, especially if the trade is large. Always meet face-to-face in public, not in a private home. Please be careful when carrying large amounts of cash. Remember, if you have a face-to-face meeting somewhere, you need to have access to a bitcoin wallet. You need live internet access to ensure the transaction - be it via smartphone, tablet or laptop.
If one-on-one trade is not your topic, check meetup.com. If you see a Bitcoin meetup check group in your area, you can do all the work in a group setting and learn a lot from other members in the process. These meetups were developed in the last half of 2013. Some big cities even have open-air events called ‘Satoshi Squares’. There you can go straight, buy some bitcoins, come back home if bought. In face-to-face trade, you can pay 5-10 percent premium depending on the seller for the privacy of the exchange. Well known traders fix the price right before. But many will not wait long, when another dramatic change in the price of Bitcoin comes. Some sellers give you PayPal accounts. May offer payments, although most sellers prefer non-reversible cash. It is wise to look into the matter first to see if such a trade is legal in your area. Bitcoin exchanges in public places can be a hassle, if the police suspect you are doing something illegal.
Six. Mining: It sounds like you can create your own bitcoin on your own. You may have heard the word 'mining' from someone, or seen it in an advertisement. The ad may say, your bitcoin mining is common with PCs or powerful graphics cards. That was true long ago. But over time, the growing popularity of Bitcoin has led to more powerful mining-specific devices in the Bitcoin network, called AICS. This means that mining is no longer cost-effective as it was a year ago. What is available from Bitcoin often exceeds the cost of hardware and electricity. Most of today's mining is a large mining group domain called 'Guild'. And companies specifically formed to mine. You can take shares from these guilds or companies if you want. But as before, it is definitely not a hobby. If someone tells you this 2014 that you can mine Bitcoin with a simple PC or a powerful graphics card, then either he is not up-to-date or he wants to sell you out-dated equipment. So be careful.
Seven. An Investment Trust: If you don't like the idea of buying a large amount of Bitcoin and depositing it safely, you can go to an investment trust like Bitcoin Investment Trust or BIT. This trust invests in Bitcoin exclusively. This trust uses a state-of-the-art protocol on behalf of shareholders to securely deposit bitcoin.
Eight. Bitcoin ATM: A lot of new ideas have come up, but most have disappeared. Of course some ideas have become popular and they are also easy to use. More and more new ideas like face-to-face exchanges are coming from different vendors. But with the help of a machine you insert your cash and get a receipt on a coded paper to put your bitcoin in the wallet. Again you will need to use a wallet ATM deposited locally or online. An operational Robocoin Bitcoin ATM was spotted in Vancouver, Canada in November 2013. At an airport in Turkey you can convert foreign currency to bitcoin using a machine with a Travelers box.
So buying Bitcoin is not as easy as newcomers expect. The good news is that the number of options is increasing day by day. In some cases, you don't even need a wallet or internet access. Other options include bitcoin cards (coming soon), physical bitcoin ‘coins’ and stored value cards.
Desktop Bitcoin Wallet
If you have already installed the original Bitcoin client (Bitcoin-Ot), you have a wallet open. But you may not know it. In addition to relaying transactions across the network, this software allows you to create a bitcoin address to send and receive virtual currency. Private key stores give more opportunities for this. There are also other desktop wallets with different features. Multibit runs on Windows, Mac OSX and Linux. Airab is an OSX based wallet with some unique features including Appstore Wallet. This appstore connects directly to bitcoin services, although beta testing was going on with some categories of wallets at the time this line was created. Others emphasize anonymity. The Dark Wallet is still under development. It will emphasize anonymity using a lightweight browser POSNG-IN. Apart from that, it has the facility of coin mixing, through which the user
Coins can be exchanged on behalf of others, so that no one else can track.
Wallet on mobile phone
Desktop based wallet is very good. However, these are not very useful if you want to buy something from a physical store on the street and pay the price. Mobile wallet is helpful in this case. Wallet can store or store the private key of your bitcoin address like running an app on a smartphone. This allows you to pay for anything by calling directly. In some cases, a wallet can even take advantage of the NFC (Near Field Communication) feature of a smartphone, which includes tapping the phone against a reader and paying with Bitcoin without entering any information.
A common advantage of mobile wallets is that they are not full bitcoin clients. A full Bitcoin client has to download the entire Bitcoin BosnChain, which is growing all the time and is of multiple gigabytes in size. This can be a nuisance for your mobile service provider. Many phones will not be able to hold the BosnChain in memory. Instead, these phones have been designed with SPV (Simplified Payment Verification) in mind. Downloading these is a very subset of BosnChain and depends on other nodes in the Bitcoin network to get the right information. Bitcoin wallet, Mycelium and Blockchain are examples of mobile wallets.
Online Bitcoin Wallet
A web-based wallet stores private keys online on your computer, connected to the Internet and controlled by someone else. There are several such online services available and some of them have links to mobile and desktop wallets. One of the advantages of a web-based wallet is that you can access it from anywhere. It doesn't matter what type of device you're using. Nevertheless, it has a big problem. If not implemented properly, Bitcoin can take your private key management company out of your control.
Is Bitcoin Safe?
It all depends on your management. The private key stored in your wallet is the only way to access the transaction data stored in the Bitcoin address. If you lose it, you will lose your bitcoin. Therefore, these are safe as long as no one else has access to these data.
There are several ways to keep a Bitcoin wallet secure: it is possible to secure the wallet by encrypting it with strong passwords, backing it up and taking it offline. Some people are developing hardware wallets that hold private keys electronically to facilitate payment. The two main players in this case are 'Treasure' and 'Mycelium'.
Is Bitcoin legal?
So far, no government in any country has announced a clear intention to ban bitcoin altogether. However, at the beginning of 2014, the central banks and monetary regulatory authorities of some countries have issued various warnings in this regard. The central bank of a country has said: 'Be careful, bitcoin is never regulated nor is it officially a currency'. Again no one has expressed doubts about its impact. In the opinion of some, the widespread use of Bitcoin can lead to instability in the financial system, especially when its price is volatile. On December 13, 2013, your bank regulator EBA (European Banking Authority) issued a statement mentioning Bitcoin investment risk. Bitcoin is neither legal nor illegal in the world.
Almost most countries have kept this currency under observation. So the question of its legitimacy will take some more time to be fully resolved
