Definition of Bitcoin:

Bitcoin is known as the first decentralized digital currency, it is basically coins that can be sent via the Internet. 2009 was the year Bitcoin was born. The name of the creator is unknown, but the pseudonym Satoshi Nakamoto was given to this person.

The advantages of Bitcoin.

Bitcoin transactions are done directly from person to person via the Internet. You do not need a bank or clearing house to act as an intermediary. Due to this, the transaction fees are very low, they can be used in all countries of the world. Bitcoin accounts can not be frozen, there are no prerequisites for opening them, the same with restrictions. More and more merchants are accepting them every day. With them you can buy what you want.

How does Bitcoin work?

It is possible to exchange dollars, euros or other currencies with bitcoin. You can buy and sell as you would in any other currency. To store your bitcoins, you need to store them in something called a wallet. This wallet is on your PC, mobile device, or third-party Web site. Sending bitcoins is very simple. It’s as simple as sending an email. Almost anything can be purchased with bitcoins.

Why bitcoins?

Bitcoin can be used anonymously to buy any type of product. International payments are very easy և very cheap. The reason is that bitcoins are not really connected to any country. They are not subject to any kind of regulation. Small businesses love them because there is no credit card fee. There are people who buy bitcoins only for the purpose of investing, expecting that they will increase their value.

Ways to get Bitcoins.

1) Buy at the stock exchange. People are allowed to buy or sell bitcoins from sites called bitcoin exchanges. They do this by using the currencies of their country or any other currency they have or love.

2) Transfers. People can simply send bitcoins to each other via cell phones, computers or online platforms. It’s the same as sending cash digitally.

3) Mining. The network is provided by some people called miners. They are regularly rewarded for all newly checked deals. Thesis transactions are thoroughly audited and then recorded in what is known as a transparent public register. These individuals compete to extract these bitcoins using computer technology to solve complex mathematical problems. Miners invest a lot of money in equipment. There is something called cloud mining these days. Using cloud mining, miners simply invest in third-party sites that provide all the necessary infrastructure, reducing equipment and energy costs.

Storage of bitcoins անում storage.

These bitcoins are stored in digital wallets. These wallets exist in the cloud or on people’s computers. A wallet is like a virtual bank account. These wallets allow people to send or receive bitcoins, pay for items, or simply save bitcoins. Unlike bank accounts, these bitcoin wallets are never insured by the FDIC.

Types of wallets.

1) Wallet in the cloud. The advantage of having a wallet in the cloud is that people do not have to install any software on their computer, wait for long synchronization processes. The disadvantage is that the cloud can be broken, people can lose their bitcoins. However, these sites are very secure.

2) Wallet on the computer. The advantage of having a wallet on a computer is that people keep their bitcoins protected from the internet. The downside is that people can delete them due to computer formatting or viruses.

Bitcoin anonymity.

When making a Bitcoin transaction there is no need to mention the real name of the person. Each of the registered Bitcoin transactions is known as a public registry. This log contains only wallet IDs և no names. so basically every transaction is private. People can buy and sell things without taking them with them.

Bitcoin innovation.

Bitcoin created a whole new way of innovating. Bitcoin software is completely open source, which means that anyone can review it. Nowadays, the fact is that bitcoin is transforming the world’s finances, just as the internet has changed everything about publishing. The concept is brilliant. When everyone has access to the entire Bitcoin market, new ideas emerge. Reducing transaction fees is a bitcoin fact. Accepting bitcoins is worth it, as it’s very easy to handle. There are no charging buttons. The Bitcoin community will create all kinds of additional businesses.