Bitcoin: What to Know about the Digital Money?
What do you understand about bitcoin, really? Although some people claim that it is the new form of digital money, it is different from the regular digital account and whatsoever. Yes, it is a digital money and yes it can only be used in the digital world, but it can also be monetized and cashed out. If you want to use this kind of money, there is a certain regulation or structure that differentiates it from the regular type of transaction and account.
A Deeper Insight about this Digital Money
Bitcoin is a way to do transaction without being traced. Unlike the other types of currencies, bitcoin doesn’t have a centralized system. No one knows how bitcoin originates. No one knows the movement – how it is moving from one transaction to another. Because it doesn’t use the centralized system, bitcoin is untraceable. Once it is gone, it is gone for good. Once you move the money out of your wallet, you don’t know where it has been at or where it would end. Bitcoin was first originated back then in 2009 after the global financial crisis happened. The first idea was simple: to have a digital currency that doesn’t include the complication and difficult process of the central banks.
Just because it doesn’t have a real shape or form – the two dimension form that you can hold, touch or feel – it doesn’t mean that this money isn’t usable or real. The bitcoin is as real as any other currencies. Let’s say that you want to have a bitcoin account, you will have to own a bitcoin wallet first. It acts like an account; without the wallet, your bitcoin won’t have the container. Once you have had your bitcoin wallet, you can exchange your real money with some amount of bitcoins. The numbers or the amount is up to you – there is no limitation of how much bitcoin you can have.
More Facts about Bitcoin
So, what should you know about bitcoins? Here are some interesting facts about it. First of all, it is a real currency. If you are performing online shopping or you want to do some transactions online, this currency can be used. Some business establishments have used this bitcoin as an alternative way to perform transactions. And yes, you can buy real stuff with the money. Can you buy a pair of shoes with it? Yes, you can. Is it allowed for you to buy furniture with it? Yes, you are allowed to do so. Basically, you can buy anything with it as long as the business accepts bitcoin as their method of payment.
Forget the traditional way of money transfer or credit card input when you have bitcoin. If a business establishment accepts bitcoin, it is most likely that they also have bitcoin wallet. Remember, transfer can only be done from one wallet to another. But it is usually fast and hassle free. In most cases, it is free because there is no middle man being involved. But word of advice: only use bitcoin when you are ready.
Read also How to Obtain Bitcoin?