What is Bitcoin: These days everyone needs financial security, but finance always comes with risk. Now the Internet market is growing day-to-day and the current Internet market is considered to be well over 20.4 trillion! (This number was true nearly 2 years back, hence as of today it probably is double what’s mentioned).
We generally use traditional currencies on the Internet using which we buy and sell products online, but the fiat currency (the traditional currency) isn’t stable. It’s completely dependent on a country’s economy.
If the country’s economy remains strong the currency’s value stays high as well. But the fiat transactions are heavily monitored and more importantly TAXED. The fee demanded for the transactions isn’t very cheap. Third-party companies (such as PayPal, Neteller, Skrill and many others) facilitate these trades and make billions each month.
For Example: You bought something online on the internet and you need to send money to the seller,you’d need to use your credit card, PayPal, Western Union, Wire Transfer or other modes of payment. All of these modes have their own transaction fees.
The value of your local currency also determines if the amount of money you’re paying. In some cases you end up paying more while at a later or an earlier time, the same amount may not equal what you just paid.
Fortunately, Cryptocurrencies brought a shimmer of hope with themselves. These cryptocurrencies are valued at the exact same price throughout the globe. These are also decentralized, as in no “company” / govt. controls them hence the charged fee is extremely low.
In other words you’d be saving a lot of money by switching to Cryptocurencies. Some popular cryptocurrencies are Bitcoin, BlackCoin, Dash, DogeCoin, Litcoin, NameCoin, PeerCoin, Primecoin and etc.
But bitcoin is is very popular and most online user use bitcoin for transaction.
Let’s discuss Bitcoin in detail and answer some basic questions, such as how to work with Bitcoin.
What is Bitcoin?
Bitcoin is a fast decentralized cryptocurrency which through you can perform a transaction between people to people which are recorded in the public ledger. Bitcoin currency most time using on the deep web (Hidden Internet, Dark Web), because here privacy security matter, here no one want to reveal his privacy.
And Traditional transaction always performs with original identity, without original identity your third party (banks, money trader) can’t perform your transaction.
But Bitcoin can resolve your problem, and now you can send money person to person without share your original identity.
If you want to buy anything on the deep web through darknet markets then you need secure currency, which not having the footprint, traces, mediator.
By the help of Bitcoin, you can send you payment in all over the world without any traces, footprint, and you can convert your Bitcoin balance into your local currency without any big fee.
For Example: Traditional Transaction (Suppose you need to send some amount of money to another country a/c, in this case mostly people use the various third party solution like PayPal, Western Union, Wire Transfer, etc. But all these third party take fees for transaction which is huge.)
But now you have a solution in for of BTC, you can send the amount to anywhere without third party fee and can save a lot of money.
How to work with Bitcoin?
I already told you about what is Bitcoin and how it works into upper post section, that’s why now time for How to works with Bitcoin.
It’s so simple like as bank account here you also need one account by which you can send or receive money. This type account called a wallet, Every wallet having one cryptographic address, by the help of this code you can receive Bitcoin and can send bitcoin to another person.
These days organization provide Bitcoin wallet services. These type wallet are categorized into two section; one is online wallet and second is an offline wallet.
These wallet are very popular into cryptomarket, and mostly users use it, but I recommend you Blockchain.info website where you can create your wallet. If you don’t know how to create wallet? then don’t panic, I am telling you complete process step by step.
This work like a software means if you want to work with bitcoin then you need to run Bitcoin wallet software, if not need then you can close.
But here is one problem, Before performing any action(send, receive bitcoin) you need to synchronize all blockchain. Which is can loss your huge amount of internet data, but this process is more secure as compared to the online wallet.
Quick demo video about Bitcoins:
Are Bitcoins Illegal?
A question revolving around Bitcoins since time immemorial is its legality. I’ve heard people say quite often that Bitcoin is illegal, a statement purely formed out of misinformation or wrong information.
Bitcoin is either completely legal, or holds an undefined status in majority of the countries. The countries where Bitcoin is completely banned are Algeria, Egypt, Bolivia, Ecuador, China, Bangladesh, Nepal, Pakistan and Morocco.
Note that the extent to which Bitcoin is banned in these countries depends on the fine-print of whatever policy was used to impose the ban.
It’s partially-legal in Canada. Although some banks have banned Crypto related transactions individually. Companies may acquire permission to use Bitcoin by registering with the Fintrac.
It’s not a legal tender in India, and can’t be used as a “Payment tool” in Indonesia. Vietnam too allows holding and trading, but not making payments using Bitcoin.
So sure, there are countries and governments afraid of Cryptocurrencies or just unable to understand the technology.
At the same time, countries like Bolivia and Romania have legalized BTC to quite an extent, and only demand a 10% tax on trading profits. It’s completely legal (so far) in UK, New Zealand, Australia and most other countries on the planet.
So bottomline, Bitcoin is completely legal almost everywhere (apart from the exceptions mentioned above). A simple Google (or DuckDuckGo) search would tell you if it’s legal in your specific country. But no, in most cases you wouldn’t be jailed just for using Bitcoins for legal purposes.
By the help of this article I am sharing brief information about what is bitcoin and how it works, hope this article provides you information which you want to know about Bitcoins, Here my main purpose is, I can give you all information about Bitcoins into very simple form. If you want to create your bitcoin wallet any want to know how to create your wallet online then check out my another step by step demo post which having all step by step description.