Even since its launch in 2009, along with Blockchain, Bitcoin has proven its potential for many great purposes. Though counterintuitive, an evidence of Bitcoin’s great potential is the way it has divided many people in the financial world. Therefore, if you’re new in the field, you must at least know the basics of Bitcoin.
In this article, we’re going to talk about the most basic things you should know about GetBitcoin. So start reading now below and learn more about the “future of money.”
You can imagine Bitcoins as digital token. Their primary characteristics are decentralization and security.
In other words, Bitcoins are decentralized, purely digital virtual coins that are exchanged directly between two parties online without having to require the service of a middle man. As a striking difference with fiat money, Bitcoin is not handled or backed by any kind of bank or central government authority.
Buy Bitcoin are a bunch of computer codes—or mathematical algorithms, to be exact. Each piece of computer code represents monetary units. There are at present approximately 11 million Bitcoins in existence.
According to data, only around 21 million Bitcoins will ever be created through the year2140. Not like credit card transactions, Bitcoin transactions cannot ever be reversed. Such transactions happen every day. What can happen is a refund, and they can only be refunded by the person who is receiving the funds.
Misconception of Full Anonymity
This is quite a misconception about Bitcoins. Are Bitcoins anonymous and untraceable?
The answer is no. Even though you don’t have disclose any kind of personal information like bank accounts or physical address, your records can still be traced through the Blockchain, which is a public record of all the transactions made with Bitcoins.
The Blockchain, which is the technology that underpins Bitcoins, is a kind of a public log that prevents you and other people from spending the same Bitcoin more than once.
How You can Buy Bitcoins
You can get your own digital tokens in different ways. You can try Bitcoin exchanges, Bitcoin mining, or private sellers.
For the case of Bitcoin exchanges, you’re faced with three more options: exchange, peer to peer, or broker. Exchanges allow you to buy and sell Bitcoins from and to them through their platform, in which case you are essentially interacting with the exchange itself.
You can also try peer to peer, which lets you buy and sell Bitcoins from and to other owners with the help of the exchange. The exchange then practically serves as the middle man in the transcation.
Lastly, you can try brokers, which lets you trade Bitcoins based on their set market price.
You don’t really need to be a geek in order to know how to use Bitcoins effectively. You don’t have to memorize all the technicalities of Bitcoins.
The first thing you’ll need to do is to install a Bitcoin wallet on your computer or smartphone. You can even use a web wallet in the cloud.