It’s been a few years since Bitcoin made its entry to the tech world. However, it is during the past few months that mainstream media started to report on it pretty regularly. However, mainstream media doesn’t talk in detail about bitcoin and just reports on price increase and drops. So, we thought of writing a brief guide to Bitcoins and how to use them.
So, what is Bitcoin?
Bitcoin is a digital currency, more accurately referred as a cryptocurrency. It is one of the first cryptocurrencies to be ever made. Bitcoin is not centralized, which means that the currency isn’t governed by a central bank or an administrator or a country. This is in stark contrast to how currencies of today function; such as the US Dollar.
Bitcoin, like any other currency could be used for payments as well. You can transfer Bitcoins digitally without the help of any middle men. Whereas traditional currencies require you to depend on the help of a Bank or a Payment Gateway. However, it’s practicality as a currency isn’t very good at the moment, as it is very volatile. The value of Bitcoin — in reference to other currencies — varies a lot depending on the market’s demand and supply.
In the past, lot of people have invested in Bitcoins, subject to both loss and profit. That being said, let’s see how Bitcoins can become part of your everyday life, without getting too technical. Bitcoins are created by a process called as mining, which theoretically can be done by anyone with a decent computer.
Using Bitcoins :
Firstly, you should get yourself some Bitcoins. There are two major ways to get a Bitcoin:
- Through Mining
- Purchasing from an exchange
Purchasing from an exchange is the easiest option. There are so many Bitcoin exchanges in the market now and you can choose the one that best suits your needs. You can pay using your country’s currency to get Bitcoin.
Since Bitcoin isn’t a physical currency, you have to store it digitally. You will need a Cryptocurrency Wallet for this purpose, and there are lot of them available for free as well. You will be able to securely store your Bitcoins in your Bitcoin wallet and use it to send it to others as well. Wallet have their unique address, which is used for the purpose of transactions and authenticity.
Blockchain is a public ledger, based on which Bitcoin is created and each and every transaction done through bitcoin is recorded in it, making it tamper proof and safe. This ensures that any fraudulent activity is not carried out using the network.
Now that you’ve got your bitcoins, where to spend them?
With the rise in the popularity of Bitcoins, more and more service providers are accepting Bitcoin as a payment method. Though most of these service providers are digital, a few offline establishments have also started accepting Bitcoins for payment, and provide added discounts for those who do! There are so many other possible use cases for Bitcoins as now, more than just holding it as an investment. You can even use it for Bitcoin Gambling as well. The possibilities are growing every day
Once you understand and familiarise yourself with the process of using a Bitcoin, it is perhaps the easiest, safest and most trustable way of doing transactions. As mentioned above, try your hands on investing in Bitcoin and other cryptocurrencies as well.
I hope this article was useful for you to learn more about Bitcoin and how it can change the way we do transactions online and offline. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.
Do you have any other reservations against using Bitcoin? What are the tools and strategies that you use to maximize your investments in Bitcoin? Let us know through the comments.