The VPNUK Blog
"Give a person a fish and you feed them for a day; teach that person to use the Internet and they won't bother you for weeks." Anon.
In November 2008 a software developer under the pseudonym Satoshi Nakamoto proposed Bitcoin a form of digital currency, created and held electronically. It is a currency independent of any central authority therefore it is decentralized, no single institution controls Bitcoin. Bitcoin is transferable electronically, more or less instantly, with very low transaction fees. No one controls it they aren’t printed like normal currency such as Euros and GBP – people produce Bitcoins, and Internet based businesses using software that solves mathematical codes. It’s the first of its kind, a type of money known as crypto-currency.
Conventional currency is based on gold or silver. But Bitcoin is based on mathematics. Worldwide people are using software programs that follow a mathematical formula to produce Bitcoins. The mathematical formula is freely available, so that anyone can check it. However, Bitcoin is limited to 21million Bitcoins mined/in circulation.
What Makes Bitcoin so easy to use?
Bitcoin has several important features that set it apart from the normal currencies. It's easy to set up. Conventional banks make you jump through hoops simply to open a bank account. However, you can set up a Bitcoin address speedily and with relative ease, no questions asked, and with no set fees.
Anonymity? - Sort of! - One can hold many Bitcoin addresses, which aren’t linked to names and addresses, or other personally identifying information. However it is transparent…Bitcoin stores every single transaction that ever happened in the Bitcoin network in a sort of virtual accounts ledger called the blockchain. If you have a publicly used Bitcoin address, anyone can tell how many Bitcoins are stored at that address. They just don’t know that the account belongs to you.
Bitcoin doesn’t incur transaction fees and you can send money almost instantly. Bitcoins are non-refundable, when your Bitcoins are sent, they are sent, as simple as that, unless the recipient returns them to you.
So, Bitcoin does have a lot going for it and the latest new suggests that the crypto-currency is getting stronger and more valuable in recent months.
|Older Post||BACK TO OVERVIEW||Newer Post|