What is Bitcoin and why you should consider using it?

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What is Bitcoin and why you should consider using it?

 November 5th, 2019

What Is Bitcoin?

Bitcoin is a digital currency created in 2009.  It can be used to buy or sell items by either individuals or companies that accept Bitcoin as payment.  However, Bitcoin is very different from traditional currencies as it exists only online.

How Does It Work?

A Bitcoin essentially is secure data treated as money.  Using this money requires computing power.  Users, dubbed “miners,” allow these computers to be used by the system to verify individual transactions safely.  A record of each sale uses anonymous strings of numbers to identify each sale within a vast public ledger known as a blockchain, to ensure the integrity of each transaction.  This secure system works 24/7 and will send money to anyone worldwide who also utilizes Bitcoins.

Why Should You Use It?

  • When you use Bitcoin, you can exchange value without a “middle man.”  There is greater control over funds and the ability of lower fees.
  • Bitcoin is faster, cheaper, and more secure.
  • Real money is controlled by banks, while Bitcoin has owners.
  • Bitcoin helps the use of online shopping.
  • You cannot track cash.  However, each transaction made using Bitcoin is tracked using a “blockchain” string of numbers.  There are thousands of computers in a vast network using this cryptographic technique to create a permanent and public record of every single Bitcoin transaction to date.
  • Bitcoin operates 24/7
  • Bitcoin is globally used and easy to use to conduct transactions worldwide.
  • Using Bitcoins as an investment tool can be used worldwide without ever going through any conversion process.  Bitcoin, considered on par with gold, is the best of cash and gold, providing an open market with zero bank or governmental restrictions.
  • Extremely secure; provides users access to their balance through private keys.
  • It is simply impossible to duplicate bitcoin (i.e., forms of counterfeiting).  You cannot say the same for real currency.
  • Once you transfer Bitcoins, the ownership Bitcoiuis also transferred.  When it comes to maintaining your tax records, it helps make it easier and simpler.
  • With Bitcoin, there are no boundaries, no exchange values, and zero third-party interventions.  Seamless transactions conducted across all borders.

How Do I Get Started

Here are some steps to help you get started:

  1. Use a Bitcoin wallet (BW) (application or program) that will allow you to send and receive Bitcoins. This wallet will help you track and maintain your Bitcoin Cash Transactions (BTC).  There are various wallets across various platforms.  You should do your due diligence and research on how to choose a Bitcoin wallet.
  2. Once you have chosen your BW add some Bitcoin to your balance.  You can do this through a credit card, or you can set up and save a Bitcoin exchange that will either pull from a credit card or bank account.  NEVER SHARE YOUR BW KEY WITH ANYONE.  Make a backup of your key and keep it safe.  Losing this key means you will lose your BC holdings.
  3. You are now ready to send or receive Bitcoins.  The process is straightforward:
    • Copy receiver Bitcoin address (or scan QR code)
    • Open BW, go to send feature, paste receiver address into the correct field
    • specify amount
    • confirm address and amount are correct
    • send

Due Diligence

Make sure you do your extensive research on avoiding Bitcoin fraud.  There are numerous pages out there, so read up on it.  There are multiple guides on Bitcoin to help you.  Here are a few to start:

Guide and Info

Latest Bitcoin News

Helpful Bitcoin tools

The Bitcoin White Paper

Conclusion

Bitcoin is a sensible choice to use.  Whether for your business, investment, or individual use, using Bitcoin will help you with your online transactions.  If you have not taken a look at Bitcoin, you should look into it today.  If you have any questions or comments, feel free to contact us.