Published On: Fri, Sep 19th, 2014

Bitcoins

Bitcoin+xxxBitcoin is a digital currency created 5 years ago by Satoshi Nakamoto, who little is known about him so far.

It enables instant payments to anyone, anywhere around the world, in exchange of certain goods, all transactions take place in an online market where users are untraceable, buyers and sellers own an online “wallet “where all bitcoins are stored in, serving like a virtual account on the computer or mobile phones with a specific ID#.

Each wallet has a private key, kind of secret piece of data that proves the right of its owner to spend bitcoins; it’s like a password to an email account.

It is very important to have a copy of the wallet and secure it; cause if the computer crashes bitcoins will disappear forever.

Bitcoins cannot be held in hand like real money, they simply revolves around a software, where all transactions and balance are recorded on a virtual ledger called blockchain, this is the world’s largest bitcoin wallet provider within a free secured web based, everyone on the network can see the balance of every other wallet in existence, which makes the whole process very much transparent.

There is no central company or government to issue bitcoins, they are created by a process called “mining”, available bitcoins are hidden amid a complex encrypted computer program where users work to solve complicated mathematical problems in order to release new coins.

Traditional electronic payments systems like credit cards rely on a central authority that supervise and verify payments, while bitcoin is decentralized, allowing payments between two individuals without the intercession of an independent agency, no names are revealed only anonymous identification numbers are attached to the sellers and buyers ‘ wallets.

Bitcoins are produced by lots of people running computers around the world, using software that solves mathematical problems, it is fast, transparent and anonymous, but they are extremely volatile, there is no control over its value against other currencies, it is an online currency of choice to gamble.

Coindesk.com provides the latest bitcoin price depending on the world’s leading exchanges, ranging about 400+ $

Bitcoin ATM are now available in UK, Netherland and many other countries, among the major companies accepting this kind of digital payments are Dell, Overstock, the giant retailer Newegg.

© Reinshe 2014

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