This digital currency has taken over the world with its popularity. What is Bitcoin? How does it work? How come retailers even allow Bitcoin users to purchase things when it is not a physical currency issued by one’s respective governments? In this article, we will talk about some of these and let you know all the basic information you need to know about Bitcoin. Here are some facts:
- Bitcoin was invented in 2008 by someone who used the name, Satoshi Nakamoto. The real person who created Bitcoin is still a mystery. Several people have come out and claimed that they are the creator. However, no one has managed to prove it yet. The most recent one was by Craig Wright who claimed to be the creator. Bitcoin was made in 2008 but went online from 2009.
- Bitcoin is a digital currency that is supposed to be applicable all over the world. No tax or fees are applicable during a transaction using Bitcoin because it is owned by no one. No banks or government have control over it. Here, the community takes the responsibility of controlling the regulation of Bitcoin. Although it is supposed to be free of taxes, regulations about Bitcoin differ from country to country hence they have advised checking with your own country’s regulations.
- As long as retailers accept Bitcoin, you can purchase goods and commodities using Bitcoin. The value of Bitcoin has increased greatly. Today the value of one Bitcoin is over $1000.
- There is a ledger which is public called ‘Blockchain’ that Bitcoin depends on. The blockchain contains records of transactions of Bitcoin users.
- There is something called the Bitcoin wallet where you can store all your Bitcoin currencies. These wallets, in general, are of two types. One where you are in charge of it, and the other one is where someone from the community is in charge of your keys for access to your wallet. Both have its pros and cons. If you are in charge of your keys and you lose your password or keys, then your money is gone forever. On the other hand giving the responsibility of your keys to someone else can be questionable. However, people do use both forms.
- Transactions and payments using Bitcoin cannot be taken back or reversed. This means that once the transaction is done, it is done. In the case of discontentment about products you buy or you change your mind, the only way you can get your money back would be if the person you sent money to agrees to return it.
- Users have used it for anonymous and private transactions. Identities are unknown, but transactions are not. We already mentioned about blockchain which is accessible to the public. Anyone can see your transaction if they access blockchain. This means that your bitcoin address can be seen by everyone which is why the community advises users to use addresses only once to maintain security.
- Over 5 million people in the world use Bitcoin.