Bitcoin- Digital Currency

                                                                             

Bitcoin is a form of digital currency, created and held electronically. No one controls it. In other words it can be described as  an electronic payment system based on mathematical proof.

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.However,the difference between conventional money and bitcoins is that ,bitcoins is decentralized. There is no government, company, or bank in charge of Bitcoin thus making  it resistant to wild inflation and corrupt banks. With Bitcoin, you can be your own bank.

Mining is the process of adding transaction records to Bitcoin's public ledger  called the block chain, which everyone can examine. The sole purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Individuals or companies engage in mining in exchange for transaction fees and newly created bitcoins.

Let us have a look at a few advantages of using bitcoins

1.Fast: When you pay a cheque from another bank into your bank, the bank will often hold that cheque for several days, until the money gets deposited. Bitcoin transactions, however, are generally far faster. Transactions can be instantaneous , meaning here a person takes on the risk of accepting a transaction that hasn’t yet been confirmed by the block chain. Or, he can take around 10 minutes if a merchant requires the transaction to be confirmed.

2. Cheap: Unlike credit and debit cards where one has to pay for its privileges, bitcoin transactions have minimal or no fee at all.

3. Decentralized:You own the Bitcoins.There are no banks involved here.

4. Discreet: Users can hold many bitcoin addresses without giving away their personal information.

5.Transparent:The block chain stores bitcoins transactions. The best part about this public ledger is that though it keeps the user anonymous,it still tells you how many bitcoins is stored at that address.Thus transactions are transparent.Also,once a transaction is made,you lose that many bitcoins.the user will not receive it back unless the recipient returns it.

How to buy Bitcoins?

You can buy bitcoins from regulated exchanges or directly from people selling them. Depending on which source you ar buying bitcoins, you can either pay in hard cash or wire transfers.

Storing Bitcoins

Bitcoins are stored in places known as ‘wallets’.These wallets are similar to a bank account.There are two types of wallets;

(1) a software wallet stored on the hard drive of your computer (2) an online, web-based service.

Whichever type you choose,ensure that you have it secured and have a back up too.

Bitcoin’s popularity is growing by the day.People from all over the world are beginning to use the digital currency,aiming to be rich or simply to take advantage of its unique  features.