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Uses of Bitcoin
Bitcoin, in other terms, refers to currency that is created and used electronically. No one can control bitcoin and it can’t be printed as well unlike other forms of currency such as dollars. This form of currency is mainly used for purchasing items electronically. As compared to conventional money, bitcoin is usually decentralized which is what sets it apart from other currency. The bitcoin network can’t be controlled by anyone including institutions or large banks. Bitcoin is based on mathematics unlike conventional currency which is based on silver or gold. In order to produce bitcoins, one needs to be well equipped with a software that follow a designed mathematical formula for producing these coins. Anyone can check the formula since it is made available to everyone and the software is an open source.
One of the benefits of using bitcoin is that it is easy to set up as compared to the rest. Conventional banks take most people in circles whenever they are trying to open bank accounts. Bitcoin on the other hand helps one to set up a bitcoin address within no time without being charged any fees or being asked questions. With bitcoin, one can be able to open as many bitcoin addresses as they want without their identity being known. Personal information such as your name or address isn’t revealed once you open up multiple addresses. However, bitcoin keeps a record of each transaction that takes place within the network. Anyone can tell the number of bitcoins stored in a specific address if one publicly uses them.
Bitcoin is a very cheap way of transacting as one can perform any transaction without being charged a dime. Using bitcoin is very reliable as one can send money to any part of the world and it arrives within a few minutes. The bitcoin network is responsible for processing the payment for it to get to the recipient. One more characteristic of bitcoin is that it is usually non-refundable. One cannot get the bitcoins back after sending them unless the recipient chooses to send them back.
When performing various activities, businesses are using bitcoin. The transfer rate for bitcoins isn’t affected by time or distance as it is fast. Since users can encrypt this kind of currency, all transactions that are conducted through bitcoins are safe. All transactions involving bitcoin are well documented since all transactions happen online.
Bitcoins are usually created as a form of reward for those using it as once users offer computing power to record and verify bitcoin transactions into the block chain, they are offered bitcoins. This process is called mining and users who prevail are awarded with new bitcoins and transaction fees. Other forms of currencies, products as well as services can be exchanged using bitcoins.