What is Bitcoin?
It is a form of payment system, just like Visa and Paypal, but it involves digital money. Therefore, this is a new kind of system, which involves the use of peer-to-peer payment network, which does not have any kind of middlemen or centralized authority. If a user is using this means, then it is another form of cash on the Internet. It is also considered to be one of the few triple entry systems that exist in today’s world.
Is there a party that controls Bitcoin?
Just like there is no party that owns email, there is no party that owns Bitcoin network. In fact, all the users of Bitcoin actually control this network. There are certain developers who improve the software, but without the consent of users, there cannot be any change in the protocol of this system. Users have complete authority on the kind of software and version that they use. However, it is ideal to use the same software because of compatibility. There needs to be complete consensus if the system is to work efficiently.
Who is the creator of Bitcoin?
The concept of crypto-currency on which Bitcoin is based was developed by Wei Daii in 1988. He suggested the idea that a new form of money that makes use of cryptography can be used to control the transactions. Therefore, there would be no central authority However, the first proof of concept and the specification of Bitcoin was published by Satoshi Nakamoto. However, after this time in 2010, there have been many developers working on this system.
However, the protocol and software are published on the Internet quite widely, with any developer having the authority to review the code or make their own version. Therefore, no one really knows who actually created Bictoin completely, just like no one knows the identity of the individual who created paper.
Do people really use Bitcoin?
You would be surprised that there are many individuals along with businesses that are turning to Bitcoin as the means of payment. This includes mortar businesses such as law firms, apartments, restaurants as well as popular online services. These services include Reddit, Flattr, WordPress and NameCheap. Millions of dollars of Bitcoin are in transaction daily.
Where do you get Bitcoins?
There are different ways that you can get your hands on Bitcoins. You can get them in exchange for goods and services. You might also ask someone to exchange Bitcoins with you. You can also get them through mining. There is a Bitcoin exchange, which allows you to get this crypto-currency in exchange for dollars, for example.
Is it easy to make Bitcoin payments?
You would be astonished to find out that these payments are actually easier than credit or debit card purchases. You also do not need a merchant account. You can make payments through the wallet application, which you can download on your smart phone or on the computer. You simply need to enter the address of the recipient, the amount that is to be paid and then simply press send. It is also now easier to make payment through the touching of two phones through NFC technology. A QR code also allows you to access the address automatically to make the payments in a much easier way.
Is Bitcoins a way to get rich quickly?
Many people think that it is easy to get rich immediately through Bitcoins. You might have seen that on the Internet where people promise huge profits for small amount of work. However, this is not true in the case of Bitcoins. The system does not promise you any kind of windfall profits. Developers cannot make money if you get involved and there is no way that they can get money from you. Bitcoins are impossible to acquire unless the owner provides consent. In fact, because Bitcoin is an experimental and virtual currency, you may either succeed or lose. There is no way that you are getting rich quickly.
Get Forbes' high crypto and blockchain tales delivered to your inbox each week for the most recent information on bitcoin, different main cryptocurrencies and ...