As you probably know, Bitcoin is money. It is pretty much like any currency you know. However, despite its growing popularity, there is still a large number of people who don’t have clarity on what Bitcoin is. At first glance, the idea of digital currencies like Bitcoin may sound confusing. So, I am using this article to share four facts about Bitcoin you should know. This will help you understand how it works.
Bitcoin Is Like Any Currency
Bitcoin is a currency and can be bought, sold, invested and used as a means of transaction. Also, Bitcoin is not the only cryptocurrency although it is the most popular and highly valued one. Just like any currency, Bitcoins have its own denominations, but they are much smaller. Bitcoin has denominations like 1 Satoshi byte and it is worth 0.00000001 Bitcoin.
While most information about Bitcoin revolves around trading, the currency can be used to pay for products and services. Some big corporations now accept Bitcoin as a legitimate form of payment. Moreover, there are now Bitcoin ATMs in most countries where people can go to withdraw their Bitcoins as cash.
You Store Your Bitcoin In Wallets
Much like how you open a bank account to keep your cash, you open a wallet to store your Bitcoin. You create your wallet when you sign up on a crypto wallet provider. To fund your wallet, you can buy Bitcoin from crypto-exchanges. The conversion rate at which you buy the Bitcoin is dependent on the currency. With your Bitcoin wallet, you can keep track of your Bitcoin balance, make transaction, trade or invest. In addition, Bitcoin wallets are very secure. So, if you lose the access keys to your wallet means, you may lose the Bitcoins within it forever. Also, it is important that you are very careful when it comes to storing your password and key, which allows you to access your digital Bitcoin wallet.
Transactions Using Bitcoin Cost Almost Nothing
Banks often require you to pay service charges for transactions and other types of services. Transaction using Bitcoin can be free of charge because there are no middlemen like banks. However, there are some crypto-exchanges that charge a small fee to pay those who ‘mine’ Bitcoin and release it into the system.
You Can’t Reverse The Transaction
Payment systems, such as bank transfer, can be tracked and, if needed, reversed. Once the money has been sent, it can’t be reversed unless the recipient returns it. Therefore, you need to double-check the address you send funds to each time before you complete the transaction.
Bitcoin is considered as one of the 21st century’s biggest technological breakthroughs. It provides universal, virtual and border-less cash transaction and this is shaping the future of transactions.
The four facts about Bitcoin you should know that I listed above are just the beginning. It will not only help clear up doubts about the cryptocurrency but also give you an idea of what information to look for.
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