Professional, and simplified, the BTC is cryptographic “currency”, which is not recognized by one country, and behind which there is no institution and no individual. This is a program that is constantly running on the Internet, supported by thousands of computers that handle transactions which direct BTC between users. Also, this is the amount that you have in your digital “wallet” (which hold the phone to the computer hard disk drive, or a USB drive, or from a “confidential” on the Internet).
BTC can be stolen (not easy, but it can), and once lost (due to, for example, hardware failure) disappears forever from the system.
Mining is a basic function of BTC, which is also the currency and payment method. Each transaction is the subject of processing anyone in the network who switch their computers to calculate complex problems with a common goal to ensure the security of transactions (as well as their anonymity and irreversibility). To receive the award the appropriate part of the “newly created” is BTC (which, in economic terminology was “primary issue”).
Due to frequent and drastic changes in the value of these currencies that go up to 10 percent per day, many people engage in standard stock market speculation – sell more expensive, buy cheaper. Of course, as in every currency stock exchanges, some people of these transactions get and some lose. Bitcoin can be purchased at almost the same way as the traditional currency; in exchange offices (the ones that accept bitcoins) or directly from the people who sell them. Payment options are varied: from the physical transfer of banknotes through the bank transfers. It all depends on who you’re buying from. Surprisingly, it is almost impossible to buy bitcoins by credit card or PayPal, because such transactions can be “revoked”, and this is one of the problems that bitcoin wants to solve.
Open the digital wallet
For all the money, you need a place to store it. In the world of bitcoin, these locations are called “wallets” (digital wallets). They can be seen as a bank account. Two basic options are:
– Software wallet by storing the hard disk of a computer,
– Online wallets that depend on a service provider.
Both options have their drawbacks. If you store everything on your computer, be sure to make a backup otherwise it could cause data loss. Online wallets depend on the service provider, and your trust in the selected.
Exchange / online wallets
As new dealers that create new markets, both in the number of options increases every week. There are fully developed stock markets where you can keep your money and change it with traditional and other digital currencies. On the other hand, some are more limited to keep your money. Currently, most of the world is only storage-oriented, while it’s up to you to decide where you will exchange trade.
Of course, the stock markets depend on the place of residence. There is a list of major stock exchange and all the currencies in which they trade. It should be noted that this list changes from week to week, as bitcoin is growing so that the inventory is constantly increasing.
Warning: the stock market, wallets, and banks
Despite the protections around checking identity, remember that the stock market and wallets are not sure as classical banks, at least not yet. Currently, there is no security for your money if stock exchange lost a job or is attacked by hackers. Bitcoin does not have, for now, the status of legal currency in some parts of the world and the authorities do not know how to approach this problem. Some larger exchanges have promised, if there is a theft, compensation for lost money, but are not obliged to do. If it comes to losing money because of bad personal passwords on account hardly anyone will want to help.
Some banks in the digital currency look as a threat to their current business model and therefore discriminates against all that is connected with this.
If you do not believe in the idea of keeping money in the wallet, you can turn to investment funds that growth from day to day. The largest of them is Bitcoin Investment Trust (BIT).
In the major cities became popular bitcoin exchange face to face, some banks have come up with the idea of introducing ATMs only for bitcoin. Currently, there are only a few of such ATMs around the world but have proved to be extremely popular (ATM in Vancouver, Canada). The idea of such an ATM is if you have an account on some markets that the ATM “covers” you have the possibility of withdrawing money from digital to physical form.
Of course, the main topic in the world of bitcoin is mining. In short, data mining is the process in which you spend the power of your computer to work on the algorithm and “dig” bitcoin. There are special computer parts that are oriented only towards it. Some things are no longer worth of, some things are. Discussions are big, and it will continue in the future.
So, purchase and use bitcoin is not simple, as it seems at first glance. However, the number of options is bigger from day to day and there is a lot of space to come up with something creative and more convenient. A popular example is the “Bitcoin card” where you put the money and give to someone or use it such as coupons, to pay. In any case, with this information, you should not be discouraged, but to try, without losing a money, everyone can.
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