Bitcoin first came into the business market in the year 2009. However, unlike the traditional currencies, such as Dollar, Euro and Sterling, central authority does not control bitcoin. On the contrary, it has been handled by peer-to-peer network of the user’s computer. It would not be wrong to suggest that bitcoin operates similar to how Skype operates. In case, you are unaware, Skype is a video chat service.
What you should know about bitcoin
It has a basic unit of value called ‘bitcoin.’ Nonetheless, every bitcoin could be further subdivided into ‘satoshies.’ It would be further necessary to mention that one satoshi would be equivalent to one hundred millionth of a bitcoin. In other words, it would be bitcoin, which is further divided into eight decimal points. It would be pertinent to mention here that bitcoins and satoshies could be furthered transferred from one computer to another. You would be able to pay for goods and services literally free. This would enable you to make international transfers without messing around with bank charges and exchange rates. Bitcoins could be sold and bought for traditional currency at special exchange rates.
In case, you wonder how to buy bitcoin, you would have several options at your behest. For using bitcoin, you would require an e-wallet. It is a specific piece of software where you would store, receive and send bitcoins. There have been three kinds of wallets, inclusive of web wallets, mobile wallets and software wallets.
Web wallets have been found on the internet. They have been a form of cloud storage. Mobile wallets have been installed in your tablet or Smartphone. It would enable you to make use of bitcoin for routine transaction in supermarkets and shops by scanning the QR (quick response) code. Last, but not the least, software wallet would be installed on your laptop or computer. They would cater you with adequate control on your wallet.
Using bitcoins for payments
It would be pertinent to mention here that payments using bitcoins have been made relatively easy and convenient. Transactions could be made from your wallets on your Smartphone or computer simply by entering the address of the receiver, the amount to be transferred and pressing the send button. Smart phones would also help you obtain the address of the receiver by scanning the QR code. It could also be done by bringing two phones together that encompass NFC (near field communication) technology. It is a type of radio communication that operates by bringing the phones close to each other. It would be pertinent to mention here that receiving payments has been made easy and convenient, as you would be required to provide the payer with your bitcoin address.
Among the several modes of buying bitcoins, your best bet would be through bitcoin exchange, by exchanging your local currency to buy bitcoins, transferring of bitcoins to your wallet and obtaining a bitcoin debit card for convenience of spending. It would be pertinent to mention here that bitcoin usage is similar to using any other technology.
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