You may be wondering what Bitcoin is after seeing or hearing about it from a lot of places online or offline. Don’t worry about that, you will learn everything you need to know about Bitcoin from this post.
What is Bitcoin?
Bitcoin is a cryptocurrency, a cryptocurrency is a digital money, digital money is money that is held electronically, you cannot touch or feel but it has value. Bitcoin is digital money that you cannot feel or touch but it has value.
The value of Bitcoin is constantly changing. As of now, it’s the highest currency in the world. You can check the exchange rate of bitcoin to the dollar here.
According to Wikipedia, Bitcoin was founded by an unidentified programmer or group of programmers under the name Satoshi Nakamoto. Bitcoin was introduced to the world on the 3rd of January, 2009 and since its inception, some merchants and online stores accept it.
Bitcoin can be used to shop online from sites like Amazon. It could also be used to buy airtime on your mobile phones.
Advantages of Bitcoin Over Fiat Currency
Bitcoin has some advantages over Normal currencies like the Dollar or Naira. Below are some of the advantages;
1. It is easy to set up
To save money in a bank you need Identity cards and other forms of identity verification but to get started with Bitcoin, you don’t need any of these. All you need to do is to get a blockchain account and fund it with bitcoins, that’s all. No documents are required and it’s free to open.
2. It is accepted globally
You can send Bitcoin to anybody leaving in any country in the world. Parents can use it to transfer funds to their kids’ schooling in other countries. Merchants can accept Bitcoin payments from customers in other countries.
3. It is fast
Bitcoin is a digital currency so transfers are completed in seconds. You can send money and the recipient gets it immediately the Bitcoin Network processes the payment.
4. Minute Transaction Charges
Sending money via Bitcoin requires you to pay small transaction charges. This is very small compared to what commercial banks charge for international transactions.
5. It’s anonymous
Some people may want to send money without leaving traces, Bitcoin lets you do that. You could also own as many Bitcoin wallets (account) as possible without
6. The system is transparent
All transactions in the Bitcoin network are saved in a public ledger that everyone can see. Though, no one gets to know who owns them.
How do I get involved with Bitcoin?
To start with, you need a wallet account to store your Bitcoins. The wallet account stores your Bitcoins and transfers them to other users or merchants when you initiate the process. Wallet accounts are more like a Bitcoin bank.
There are 5 types of bitcoin wallets; desktop, mobile, online, hardware, and paper wallets but the most used type is the online bitcoin wallet. Just like any other website, online bitcoin wallets can be hacked if the owner does not secure his/her wallet. We recommend users take all forms of security measures to protect their Bitcoin wallets.
After you’ve created your wallet, you need to fund it with bitcoin. You can check our post on how to fund a bitcoin wallet.
Bitcoin is gaining more popularity around the world, don’t be left out.
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