One of the best (or disconcerting) things about the world of finance is that there are always new developments. Today, we discuss one of the more recent developments: Bitcoin (BTC).
What is Bitcoin?
This is one of the more recent additions of internationally recognized currency. It was in 2009 when it was created by someone hiding behind the alias of “Satoshi Nakamoto”. What makes Bitcoin so different from all the other normal currencies is that it is the first one to be completely digital in its origin.
If you were to do any form of transaction online, it would normally be processed through a bank or a website like PayPal. It was expected that a paper trail would be left behind like your name or anything that would help vouch for your identity. Bitcoin takes out banks and other form of middlemen from the process. Now, anyone can pay for services or pretty much anything in complete anonymity.
Names, addresses, and other precepts of accounting are not honored by Bitcoin. While transactions are logged, the names of who buys and sells, along with details of what is being purchased are never revealed. What you can only find will be the Wallet ID.
More and more establishments are actually accepting BTC as legal tender. From a user’s standpoint, having Bitcoin is pretty convenient as they are not subjected to any form of regulation.
Where can you get Bitcoins?
You can actually purchase BItcoins in various online marketplaces. They can also be traded from one user to another through apps. You can also obtain Bitcoins from certain sites that allow users to “mine”. It comes as a reward for solving puzzles and other things.
They are stored in virtual wallets or in the computer system of the buyer.
As the biggest draw of Bitcoins is the fact that anonymity is assured, there has been significant concern raised about the lack of transparency. It has been raised to the attention of many that Bitcoin is now the preferred form of transaction by those who would prefer to be beyond the radar of the law (read that as illegal activities).
What makes Bitcoin completely interesting is the fact that instead of disappearing, it has only improved in price. The current value of BTS is $4,000.
Made for Safety?
The initial precept of Bitcoin was that as the names and particulars of the owner were not listed, it was practically impossible to build a profile on the owner. Meaning, those that go online looking for marks to con or to steal the identity of had nothing to build on.
At least, this was the plan. Much like anything that is borne out of human ingenuity, there are those that will eventually warp its intended purpose. Bitcoin might be banned in China; however, there is no doubting its power in other countries that do accept it as legal tender.
If you would like you invest in Bitcoin, it would be best to study the market carefully.