Bitcoins is a new foreign digital currency (Cryptocurrency) that was created in 2009 by a mysterious person using the alias Satoshi Nakamoto. Transactions are generally created with no inner men (third party) – meaning, no banks! You will find no purchase fees with no need of providing your real name. More merchants are starting to accept them: You can buy web hosting services, pizza or even manicures.
“Bitcoins is one of the most important inventions in all human history. For the first time ever, anyone can send or receive any amount of money with anyone else, anywhere on the planet, conveniently and without restriction. It’s the dawn of better, freer world.” said by Roger Ver, CEO Bitcoins.com
The system of account of the Bitcoin system is bitcoin. By 2014, tickers used to symbolize Bitcoin are BTC and XBT. A small amount of Bitcoin used as alternative units are millibitcoin (mBTC) and Satoshi. Named in respect to bitcoin’s creator, a Satoshi is the tiniest amount of Bitcoin addressing 0. 00000001 Bitcoin, one hundred millionths of a Bitcoin. A millibitcoin equal to zero. 001 Bitcoin, one-thousandth of a Bitcoin or 100, 000 satoshis.
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not attached to any country or subject to regulation. Smaller businesses may like them since there are no credit card fees. Some individuals just buy bitcoins as a great investment, hoping that they’ll go up in value.
Where to get Bitcoins?
There are a number of marketplaces called “Bitcoin Exchange”. one of them, Mt. Gox. Mt Gox is the largest Bitcoin Exchange. These allow people to buy or sell bitcoins using different currencies. Another way is by competing to “mine” bitcoins using computers to solve complex math puzzles. This is one way how bitcoins were created. Every winner is recognized with 25 bitcoins approximately every 10 minutes.
How do you Own Bitcoins?
Bitcoins are stored in a “digital wallet,” which is available either in the cloud or on a user’s computer. The wallet is a kind of virtual bank-account that allows users to send or obtain bitcoins, purchase goods or save their money. Unlike bank accounts, bitcoin wallets aren’t covered by the FDIC.
The person remains Anonymous.
Though each bitcoin purchase is saved in a general public log, identity of buyers and sellers are never unveiled only their wallet IDs. While that will keep bitcoin users’ orders private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for individual’s online buying drugs or other illicit activities.
Source- CNN Tech