In the past years, the evolution of technology has brought many changes in most industries. Economy, for example, has suffered serious adjustments lately: from e commerce to using virtual currencies to pay for certain products, nowadays you have access to plenty of modern methods and solutions. This form of digital currency is called “Bitcoin”, has been created and is maintained exclusively electronically. The system was invented in October 2008 by Satoshi Nakamoto, who started designing a cryptography mailing project, aimed to result in an international digital payment method. For this reason, the first for of Bitcoin was known under the name of “cryptocurrency”. One year later, Nakamoto launched the open-source software. Unlike traditional money, such as Euros or Dollars, this type of currency is not printed, not does it have a physical form. It is rather produced by humans and businesses whose activities are related to virtual transactions, and is self-regulated.
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Who can use bitcoins?
Anyone can get a Bitcoin card and use it for their day to day activities, as long as the recipient accepts this type of currency. What is actually great about this payment method is that it has its own system, which is not controlled by international financial institutions, banks or national regulations. Bitcoins run on computers all around the world, so suing them gives you the freedom to access assets and goods from any region of the globe. Both individuals and large corporations can use the system instead of traditional payment methods.
How does the system work?
Broadly, the payment system is based on a piece of software that solves mathematical problems. It is peer-to-peer type and transactions are conducted without any intermediary (such as banks), between users directly. You may think that this is not possible, since there has to be a tertiary entity to verify the exchange, but it actually is. This is due to the fact that all transactions are checked by a network node and recorded in a blockchain (a public distributed ledger). This public registry has Bitcoins as the main unit of account and all the users are aware of this.
How can you acquire Bitcoins?
Given the fact that the currency is virtual and does not represent something tangible, a lot of people are confused about acquiring it. It is true that the process of purchasing Bitcoins may be a bot complicated, but this is so in order to ensure individuals’ security. However, there are several options through which you can acquire the currency, if you need it. The most popular one is represented by dedicated online platforms: you create a virtual wallet, then a special account that needs to be linked to a traditional bank account. After this, you can buy or sell Bitcoins, using normal money that is transferred into virtual value. It may take a couple of days to complete the transaction.