Bitcoin is a form of currency that exists only in the digital world. The technology was created by an individual hiding under an identity named Satoshi Nakamoto. To date, the creator (s) of the system have never materialized, retaining anonymous status.
Bitcoins are not printed as traditional currencies because there are no physical representations of cryptocurrencies; it is produced by users and numerous companies through a process called mining. Here, dedicated software solves math problems in exchange for virtual currency.
The user takes control of it with the help of electronic devices, which also serve as a medium for performing transactions with the help of numerous platforms. It is also stored and secured using virtual wallets.
Characteristics of Bitcoin
Bitcoin has the characteristics of traditional currencies such as purchasing power and investment applications that use online trading instruments. It works just like conventional money, only in the sense that it can only exist in the digital world.
One of its unique attributes that cannot be compared to the fiat currency is that it is decentralized. Currency does not work under an administrative body or institution, which means that it cannot be controlled by these entities, giving users full ownership of their bitcoins.
Moreover, transactions take place using Bitcoin addresses, which are not associated with any names, addresses or any personal data required by traditional payment systems.
Each individual Bitcoin transaction is stored in a book that anyone can access, this is called a blockchain. If the user has a publicly used address, his information is shared so that everyone can see it, of course without information about the user.
Accounts are easy to create, unlike conventional banks that ask for a myriad of information, which can put their customers at risk due to fraud and schemes surrounding the system.
Furthermore, fees for Bitcoin transactions will always be small. Apart from the almost immediate completion of the processing, it is not known that the fees are significant enough to damage someone’s account.
Use of Bitcoin
In addition to the possibility of purchasing goods and services, one of the well-known applications is also characterized by the use of investment funds. These include Forex, bitcoin trading and binary options platforms. Furthermore, brands offer services that revolve around Bitcoin as a currency.
It is clear that Bitcoin is as flexible as a traditional legal tender. Its introduction provides each individual with new useful opportunities with its ease of use and opportunities to make a profit.