Minimal BTC Fees

Bitcoin; All You Need to Know written by: Briema Bitcoin is commonly referred to as digital currency. It is currency for the Internet in simple terms; and it employs a peer-to-peer payment system or network. The feature that makes it stand out is the fact that there are no banks or middlemen needed to execute payments in the network. Bitcoin has been referred to as the most outstanding triple entry bookkeeping system anywhere.

Creation of the bitcoin

Bitcoin has its origin from the concept called cryptocurrency. Although it was first described in 1998, it was officially published in 2009 by Satoshi Nakamoto as proof of the concept. Since then, developers have actively stayed with the idea to make it more popular today. This concept has been born from cryptography which controls all the transactions. In this regard, the initial creator made this software open source and every developer can adopt it and make their own adjustments for use. It is a concept that has been received in the market with great enthusiasm as more and more people seek to learn more about how it works.

Who controls it and how does it work?

The bitcoin idea is not owned by any individual and the people who use it around the world have the control. For it to work effectively, there must be consensus on the users so that the rules are put in place to comply with every aspect or element therein. Therefore, with a good structure and rules set in place by users, this software protocol will work efficiently. So how does it work exactly? It is really simple and just like having a mobile app or a computer program, the bitcoin system will allow you to have a personal wallet where you can send and receive bitcoins.

While transactions are being made, a lot is happening behind the scenes. A ledger which is called the ‘block chain’ will be shared publicly. This ledger is able to verify all the transactions and validate the authenticity through the aid of digital signatures. The signatures are created around the sending addresses and this will allow full control by users. This is the little detail behind cryptocurrency technology. So, who uses these bitcoins and are they really used by people?

Who uses bitcoin?

Many people use bitcoin even if it is a relatively new entrant. In fact more and more individuals and businesses are finding the merits of using bitcoin. Among others, apartments, law firms and restaurants are using it. When it comes to online services, WordPress, Reddit and NameCheap are the most popular who use this online currency. Bitcoins worth millions of dollars are being exchanged every day and this is growing.

How do you get bicoins?

You can receive the currency from payment of goods and services. You can also buy them from bitcoin exchange. Another way to get them is to exchange bitcoins with someone near you. Finally, you can get them through a process called mining. Mining is a reward system where bitcoin users earn points for more currency.

How a bitcoin payment is made

It is actually easier to make bitcoin payments compared to credit or debit card payments. This is because it takes a wallet application using your smartphone or computer. Just enter the recipients address as well as the amount then press send. To receive payment, you do not need to have a merchnat account.

The merits of using bitcoin

1. Freedom of payment

You have the freedom to send and receive the currency instantly no matter where you are in the world. The amount also does not matter. There are no borders or limits meaning that even during bank holidays, you will have all the freedom to conduct your business; there is full control.

2. Minimal fees

You can choose not to pay any fees at all while using bitcoin. However, you can pay a small fee and have your transaction processed much faster. Because of their ease and difference, bitcoin fees are much lower than Paypal or credit card companies. For merchants who help convert the bitcoin to flat currency and make deposits to actual bank accounts, the fee to this service is still the lowest.

3. Limited risks for merchants

The transactions are very secure and irreversible. They do not contain private customer information allowing many people to trade securely. As a matter of fact, there is no need for PCI compliance. Fraud is definitely nipped in the bud to the delight of many merchants.

4. Control and security

Using bitcoin is one of the best ways to avoid identity theft. This is a very strong element in transactions giving users more confidence to go about their businesses.

5. Full transparency and neutrality

In the block chain, all information regarding different transactions can be verified accordingly in real time. The bitcoin protocol cannot be manipulated and in this regard, the system is transparent, neutral and predictable.

The demerits of bitcoin

1. The penetration and use of this currency is still very low. In this regard, there is no large network which can bring forth additional merits.

2. Since this currency is new in the market, the value is subjected to volatility. In essence, people can only watch and observe how this start-up currency will fair and it will take time.

3. Because the development of the bitcoin system is still ongoing, there is no full guarantee. It is not a system that has fully matured because it is still in beta. In this regard, some people may want to see the end product before they are able to use it.
Other than this, bitcoin has come a long way and definietly has a promising future. It will be interesting to observe how it plays out in the market going forward.

Is bitcoin it legal?

It is worth noting that most jurisdictions have not passed any law to ban this currency. Some countries may observe this currency with caution which a few like Russia are very restrictive to any foreign currencies. All in all, most people in the world can use bitcoin; however, it is good to keep up with any variables that may come to play in the future in any jurisdiction. There are many other elements to talk about; but the above is an insight into the basics of bitcoin.

Bitcoin currency: what makes it different from traditional currnecy, is it a good investment ?

Bitcoin refers to a completely new kind of digital currency that is characteristic of cryptographic keys and is decentralized to a network of computers that are used by several users and miners from across the globe. One thing which makes this digital currency stand out from the rest is the fact that it is neither controlled by any single organization or government. Frankly speaking, it is by far the first digital crypto currency that has managed to gain the public’s attention and has been accepted by the quickly growing number of merchants. One of the best things about bitcoins is the facts that: just like other common digital currencies, you can use it to shop for goods as well as services online. What’s more, you can now even use it in some physical stores which have organized their cash flow systems to accommodate this relatively new form of digital currency as a valid for of payment. In addition to all of the above, it is equally important to note that currency traders also have the ability to engage in the trade of this currency in bitcoin exchanges.
In spite of the above, it is equally important to not that there are countless other major differences between bitcoin and the well known traditional currencies such as the U.S dollar. Below is an overview of some of the major differences mentioned above to help you familiarize with all of the ins and outs of these two types of currencies. They include the fact that:a. Bitcoin does not have any form or centralized authority e.g. central bank, visa network, government or master card. As strange as it may sound, the currency’s peer to peer network for payments is somehow independent. More specifically, it is managed by users and the currency miners from across the globe. Interesting thing about the currency is the fact that: it is transferred directly between different users via the internet without necessarily having to pass through any clearing house (centralized authority). All of this simply translate into one simple thing, this is the fact that transaction fees are significantly low compared to other currency transfer options.
b. Bitcoin is created as a result of a process referred to as bitcoin mining. What happens in the transaction platforms is that the currency miners from across the globe employ the use of mining software and computers to break down and solve fairly complex bitcoin algorithms which in turn result into the approval of bitcoin transactions. Users are then awarded with transaction fees and consequently bitcoins which are generated following the successful solve of bitcoin algorithms.

c. There is a fairly limited amount of bitcoins presently in circulation. In fact, according to blockchain, it is estimated that there were around 12.1 million coins in circulation as at 20th of December 2013. Interesting thing about this digital currency is the fact that the difficulty of mining the coins (solving algorithms) gradually gets more complicated / complex as more and more requests for more bitcoins are generated. What’s more, the maximum amount set to be in circulation has already beeen capped not to surpass 21 million. As strange as it may sound, this limit is set not to be reached right until the year 2140. This in turn makes bitcoins even more valuable since more and more people will have an opportunity to make use of them.
d. There is a public ledger dubbed the “blockchain”. It serves to record all kinds of bitcoin transactions while at the same time showing each Bitcoin owner their respective holdings. This in turn has helped make sure that anyone can easily access the public ledger to verify any transactions. This has in turn made the digital currency not only transparent but also equally predictable. Above all else, the best thing about the currency is the fact that it has helped rule out the possibility of fraudulent transactions and double spending of similar bitcoins owing to the digital currency’s transparency.
e. The currency can either be acquired through bitcoin exchanges or simply through bitcoin mining
f. The currency is at the moment accepted in some brick and mortar retail outlets as well as in a limited number of online based merchants.
g. Bitcoin wallets are specifically used to store bitcoins, public addresses and private keys as well as in the anonymous transfer of bitcoins between different users.
h. Bitcoins are not in any way protected or insured by any government agency. This being the case, there is absolutely no way that the currency can be retrieved in the event the secret keys are for instance stolen by a hacker or lost as a result of a failed hard drive or even worse as a result of the closure of a bitcoin exchange. Simply put, any lost bitcoin associated keys are impossible to recover hence they run out of circulation.

Bitcoin will continue gaining more and more acceptance from the general public especially from the new generation of online shopper mainly because it allows users to remain anonymous while shopping for goods and services online. What’s more, the transaction fees are considerably lower compared to those of credit card payment networks. In addition to this, there is the public ledge which besides being accessible by anyone, also rules out the possibility of fraudulent transactions. Remember, the currency supply is capped at approximately 21 million and that the network of payments is independent and under the management and operation of users and miners and not the central authority as perceived by many. Frankly speaking, bitcoin is not a very great investment option taking into consideration the fact that it is extremely volatile and equally unstable. This is mainly attributed to the fact that a while ago, the price of bitcoin grew from as low as $14 to a record $1,200 before dropping again to around $632. The digital currency surged again this year following speculation from investors that it would quickly gain wider acceptance from the general public which would result into the increase of its price. The currency however, is on record for plunging 50% in December following china’s biggest Bitcoin operator’s announcement that it will not be accepting any more new deposits following a government directive. What’s more, according to Bloomberg, the Chinese central bank is on record for barring well established financial institutions as well as payment companies from handling any kind of bitcoin transactions.
Taking into consideration all of the above, it is clearly evident that biotin s will continue to gain more public acceptance overtime. However, its price will remain extremely volatile to sensitive news such as restrictions and regulations by the government most of which have negative impacts on its use.