Have you ever wondered how the process of transferring money via the Internet works? Because earlier you’d have to run to the post office to make a money order to another person and wait for days for them to receive it. Now, it’s just a matter of a few clicks and taps, and there it is- your money is successfully transferred to another person, time and distance no bar.
What is a Bitcoin?
Let’ talk about “Bitcoins”. Sounds familiar? In a purely simple term, it’s like sending a gold coin via e-mail. Now let’s go a bit into the depth. Bitcoins are a new method of payment on the internet, i.e, they are digitalized currencies that allow the users to transfer money, but without any middlemen or any centralized authority. It’s purely a point-to-point digital payment method.
Origin of Bitcoins
An unknown individual, with the pseudonym Satoshi Nakamoto, introduced the codes and processes of the Bitcoin system. He left the program somewhere in late 2010. But that didn’t hinder the system, as since then, it has been growing exponentially. The unique thing about the Bitcoin system is that anyone can access the codes, from anywhere in the world, and modify it in any way.
The Working Principle of the Bitcoin System
The Bitcoins are stored in “Bitcoin Wallets”, just like we store cash in our wallets. When one user sends money to another via these Bitcoin Wallets, it’s called a Transaction. Just like we have unique pins for our ATM cards, each Bitcoin transaction has a specific unique code, which ensures that the money sent via the transaction has been sent by the owner itself, and not someone else.
To know more about Bitcoin transactions, check out this video by Nolan Emmett.
The Growth of Bitcoins
Crypto Coins News gives an elaborate explanation about the growth of Bitcoins and how its value is gradually increasing by the years. Currently, 1 Bitcoin equals ₹261589.65
DutchChain here explains the actual value of Bitcoins and Cryptocurrencies.
Applications for Bitcoin Wallets
- You can save them.
- You can spend them just like cash.
- You can trade them.
- You can invest them in BTC based companies.
Why Should You Use Bitcoins?
It’s a Next-generation Technology
With the Internet growing each day, and a variety of technologies flooding in, Bitcoins are one of the most useful technologies. They nullify the concept of carrying cash physically. So, with Bitcoins, all you gotta do is just transfer your cash to another person via a simple online wallet.
It’s Fast, Secure and Global
Gone are the days of transferring money via money orders and banks and waiting for days for the other person to receive. With Bitcoins, you can send your money to anyone, anywhere in the world in a matter of minutes, and the best part is, you don’t have to worry about theft.
Privacy is the First Concern
Bitcoin transactions can be viewed by anyone. But that depends on whether the user wants to keep it private or transparent. Also, unlike bank accounts, you can create as many Bitcoin Wallets as you wish to.
It is Unaffected by Inflation
How many times have you faced cash crunches just because there’s inflation when the dollar value decreases? Well, the scenario with Bitcoins is different. Since it is digitalized currency, and very scarce, it is not even the least bit unaffected by inflation. Cool, isn’t it?
It Provides Financial Freedom
Banks might more or less control your financial activities. That is not the case with Bitcoins. They are not just digitalized currencies, they let you be your own ‘bank’. While you still may not have a bank account, with Bitcoins, you can still transact freely from anywhere.
So these are the basics of Bitcoins-what they are, how they work, and how they can help you. Still need to get clarified about Bitcoins? Check out this super simple video explaining Bitcoins by CuriousInventor.