What is Bitcoin?Here is a very basic description of what Bitcoin is, everything you need to know about Bitcoin and other cryptocurrencies and how you can get involved in this ever growing market.
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The basics of Bitcoin
Bitcoin (or BTC) is a digital currency that is electronically created and stored. Bitcoins are not printed physically or generated by central banks, they are not subject to central or state control, but they are de-central calculated by many people around the world using computer power to create this cryptocurrency.
The Emergence of Bitcoin
Why use Bitcoin?
Without getting into too many details, there are many reasons why people use Bitcoin over traditional alternatives such as credit cards and other payment services. Here are some of the main ones:
Transactions are instant and globally cheaper, or more accurately, almost free. You don’t have to wait for one financial institution
Ultimate Guide To Getting Started With Bitcoin
How can you buy it?
Why should you start buying small amounts for the future?
The future of money
Also good to know…
In fact, bitcoins are so unique because no central bank actually controls the supply of bitcoins, and as a result, bitcoin is not backed by any government or other entity. People can acquire bitcoins by trading them in the open market or by buying them from sellers. When users want to spend bitcoins, they first have to download the bitcoin software, which enables them to send and receive the currency over a secure network, known as the Bitcoin network. Because bitcoins are non-transferrable, users who want to spend them will have to rely on other people’s cooperation in order to do so. Efforts to make bitcoin transactions more secure or anonymous are a perennial topic of discussion. But in the final analysis, bitcoin is merely an alternative form of money, like gold or a state currency, which has the value that comes from its production and the right to transfer it.
To the extent that laws are designed to guarantee the secure transfer of paper money, they don’t include bitcoin or its derivatives. Here, as with any other form of currency, authorities can make their own judgments. Indeed, the U.S. dollar and its derivatives are so intricately intertwined in the legal framework that they are not even considered to be distinct currencies. But since paper money and bank-issued derivatives are identical in this sense, the relative burdens of the legal regulation are virtually identical. What determines whether a government can impose regulatory hurdles to protect taxpayers or address the financial sector’s role as a giant marketplace for illicit activity?
The straightforward answer is that they can. The question is, of course, one of degree, and the empirical measure of degree is itself a policy matter.