Bitcoin is a digital currency which was designed in 2009. It is the most commonly used and most popular cryptocurrency. It is a digital coin that can be bought or sold with other currencies and also used as an investment or as a means to buy goods and services from people who accept them.
Bitcoins can be purchased from people who deal in it. It can also be obtained through physical currency. It can be earned online by performing and completing tasks for bitcoins, gambling, casino games etc. Generally, bitcoin address is created to aid transactions. The bitcoin miners are responsible for processing bitcoins transactions, keeping the network functional and maintaining it.
The value of this digital currency is largely dependent on its popularity and acceptance. It is therefore accepted and used by many. It is easier, faster and cheaper to make transfer or make transactions with. It also affords its users privacy. Transactions made with and through bitcoins are easier compared to physical currency.
In totality, there are 21million bitcoins that can be accessed, once it is exhausted, more bitcoins can’t be generated, except of course another program is designed to accommodate more supply.
Bitcoins has no claim of ownership attached to it. It is not linked to any individual, government, organization, or country. It can be seen or expressed as “floating wealth”, and has been regarded as a means of storing wealth and long term investment. People around the world now use bitcoins to send money to their friends and family and also to purchase goods online.
Security of the bitcoin system is of immense importance and concern, although it is secured using passwords, biometric readers, encryptions etc. The risk of bitcoin theft is far less than those experienced with paper currencies. Forgery is also eliminated in the bitcoin system due to the fact that bitcoin can only be spent once.
Following the existence of the bitcoin network, it is of high interest to law enforcement and tax authorities because it can’t be linked to an entity. There are major concerns as to if the bitcoin network is a legal way of making money, Therefore its legality depends on the user and what it is used for.
Just as a large number of the population has accepted bitcoin as a good form of investment and a way of accumulating wealth, a few still have reservations about it. Since it is not owned or linked to a particular party, a few still fear it’s a risk to invest or perform any form of transaction since no one would be held accountable in case of losses are encountered. The bitcoin digital network isn’t insured unlike the paper currencies. Whereby there is loss of hard drive, digital wallet, it automatically means loss of your bitcoins.