What Are the Benefits of Using Bitcoins?
Bitcoins are making use of encrypted digital currency that is operated by smaller organizations. This simply means that bitcoins are not controlled by the government or any financial organization. Bitcoins just make use of a bitcoin wallet that does not need a lot of requirements on the part of the one getting it compared with opening a bank account that requires a lot of things such as the applicant’s valid ID. Bitcoins are only accessed and sent and received from other people who have such an account if the person and anybody transacting it have already established a bitcoin wallet.
How do you create a bitcoin account of your own?
By looking for a certified bitcoin broker, you can then immediately get your own bitcoin wallet. You are then given a bitcoin address and a private key by the certified broker after you have successfully open a bitcoin wallet of your own. A series of letters and numbers comprise both the bitcoin address and the private key, where the former has the same function as that of a bank account number and the latter is provided to serve as the password for the bitcoin user.
Why does the bitcoin function as an anonymous payment processor?
The bitcoin system enables their users to do three major transactions online. These three major things are as follows: sending money to someone anonymously, making a purchase on the internet, and as a form of investment. There are now numerous retailers that accept bitcoins as a type of payment transaction. If you use bitcoins for your purchases instead of cash, you are making sure that your transactions are anonymous. When it comes to sending money to other people, a similar scenario takes place; since you did not pay a lot just to get an anonymous bitcoin wallet, it also means that you can simply send money to other people anonymously.
How do you invest using bitcoins?
The price for bitcoins is not constant; it is actually changing from one time to another. To understand this concept clearly, an example would have to be back in the year of 2013; at the beginning of this year the price per bitcoin was 400 dollars and at the end of the year the price rose to 1000 dollars per bitcoin. This simply means that if you invest on 2 bitcoins at the start of the year of 2013, which is worth 800 dollars, and keep it, by end of the year of 2013, instead of only getting 800 dollars, the total amount of your investment would be 2000 dollars. Most people find it best to keep these bitcoins for longer periods of time as a form of investment because they are certain that their value is not constant.