What Is Bitcoin And More Questions?

Some financial experts say that Bitcoin will be the future's currency. I agree because it is what money is not. So what exactly is bitcoin? Bitcoin is technically described as the first decentralized digital currency, also known as crypto-currency. It was created by Satoshi Nakamoto in 2008. The keyword here is digital and that is what differentiates it from the physical money that we are familiar with. There lots of other digital currencies but bitcoin accounts for the largest share for these type of transactions.

Each bitcoin identified by the currency symbol BTC, can be divided up to 8 decimals. The smallest unit being 0.00000001 bitcoin is called a satoshi in honor of the inventor. In between a bitcoin and a satoshi there are two other smaller units. The millibitcoin which is equivalent to 0.001 bitcoin and the microbitcoin which is equal to 0.000001 bitcoin, also called a bit.

Bitcoin transcends sovereign boundaries and it is available to anyone who wants to use it, anywhere in the world, but must have an internet connection. It is the true global currency so to speak. Each user is identified by 26-35 long alphanumeric characters called an "address". This is automatically generated by the software and a user may have several addresses.

Digital currencies, in general, are used as payment in direct peer-to-peer transactions. This means that there is no intermediary involved to charge fees. This, in turn, results to zero or low transaction costs. The payment system is not regulated by any government or central bank. Its value not controlled by any individual or entity, but rather dictated by the users as a whole. That's is why the exchange rate of bitcoin is very volatile. The currency and transactions are legit, in fact, governments and big companies support it. For more basic information, visit WeUseCoins.

Despite all the positive attributes of bitcoin, one glaring problem with it is, users are not protected by refund rights or chargebacks.

How can you get bitcoins? Unlike cash which is printed by a central bank, bitcoins are produced by software and hardware. In order to fulfill bitcoin transactions, the system needs computing power to process it. Being peer to peer, this is provided by none other than the user's computer or anybody's that installed the bitcoin software. In exchange for this, the user gets bitcoins. The more powerful the PC, the faster it can process and the more bitcoins can be had. This is called "mining".

MiningPoolHub is a mining software. It can be used in underpowered machines.

If you don't have a powerful computer, don't worry, there are now lots of websites that give bitcoins in exchange of a product or service. Such sites are called "faucets". You can also sell items for bitcoins or do "tasks" such as viewing ads or websites or play online games.

There are a lot of digital wallets where you can cash out, but for me, CoinBase.Com is the best since it is regulated by the US.

In the Philippines, Coins allows you to buy, sell, and send BTC using the local currency: Peso. They offer a wide array of cash in and cash out options: ATM, Bank deposit, GCash, Palawan Express, MLhuillier, LBC, etc. Aside from this, you can also buy mobile loads and pay bills online. You can also cash out to ING Bank and BPI.

Abra is a unique digital wallet as the deposited crypto like BTC earns interest and a hefty one too currently pegged at 4.5% per year! TUSD(True USD) is earning a whopping 10%. TUSD is a stablecoin with 1:1 ratio with US Dollar and is guaranteed by its parent company, Trust Token. Learn more about it here. Interest is credited weekly as long as the minimum amount is met. It supports major cryptos. Other good wallets offering interest on crypto deposit are Nexo and Celsius

If you know currency trading, you can earn by buying and selling BTC. Unlike Forex, crypto-currency trading is truly 24/7.  You can use Coins, but I use eToro.

CryptoCompare and CoinMarketCap have detailed information and charts.  Also always get updated news at CoinTelegraph and CoinDesk.

Popular posts from this blog

Best Way Of Tipping The Web

Best Free Online Image Editing Tools

Best Free Website Monitoring Services