Will you appreciate a place to safeguard your assets where governments and central banks have no control over it regardless of occasional awkward market trends and scams or bailouts or inflations? Can we conveniently make investments without the worry that we could go bankrupt someday as a result of the fall of the financial control center?
It was created by the anonymous Satoshi Nakamoto, an unknown programmer, as the very first type of digital currency nearly a decade ago and as the first decentralized currency, it has gained much popularity in the crypto market.
During the publishing of the white paper, Satoshi Nakamoto said “we propose a solution to double spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as a proof of the sequence of the events witnessed but proves that it came from the largest pool of CPU power. As long as a majority of CPU powers is controlled by nodes that are not cooperating to attack the network, they will generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcasted on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone”.
It is a peer-to-peer system that was released as open source software, and with it, transactions do not need a third party or an intermediary for validation. All transactions with bitcoins are recorded on the public digital ledger known as the Blockchain Network.
Gradually Bitcoin is fast becoming more and more grounded as an acceptable currency or means of payment all over the world. People are losing faith in banks and the traditional paper currency it circulates. Notable investment companies and financial organizations are exploring this idea and have already started to buy up Bitcoins.
The media is talking about it more than ever and with each passing day; more governments are legalizing it and accepting it as a means of exchange and payments, even implementing it in other fields of financial operations. As more people are putting faith in bitcoin, the value is increasing and it is making this digital currency more sought after in the business world today.
- High level of Security- Bitcoins’ ownership address can only be changed by the owner. No one can steal Bitcoins unless they have physical access to a user’s computer, and they send the bitcoins to their account. Unlike conventional currency systems, where only a few authentication details are required to gain access to finances, this system requires physical access, which makes it much harder to steal.
- No Charge Back Risks- Once Bitcoins are sent, the transaction cannot be reversed. Since the ownership address of Bitcoins will be changed to the new owner, once it is changed, it is impossible to revert. Since only the new owner has the associated private key, only he/she can change ownership of the coins. This ensures that there is no risk involved when receiving Bitcoins.
- Very Low Transaction Fees- Sending and receiving Bitcoins requires users to keep the Bitcoin client running and connected to other nodes. Essentially, by using Bitcoins users will be contributing to the network and thus share the burden of authorizing transactions. Sharing this work greatly reduces transaction costs, and thus makes transaction costs negligible.
- High volatility- The price of Bitcoin has a high volatility. Although the cryptocurrency has an uptrend, it\'s still risky. Good currencies have low volatility, as owning unstable currency or accepting it as a form of payment becomes too risky.
- Government regulations- If the government decides to declare owning Bitcoin illegal, you may find yourself in trouble. Currently, the government stance on cryptocurrencies is not clear.
- Competition- Other cryptocurrencies could send Bitcoin into history. Offering faster transactions, complete anonymity, storage space and other improvements could lead to lower market share for Bitcoin.
- Security of services/products- In order to use Bitcoin, you need wallets, exchanges, payment processes, etc. Not all of these services have perfect security.
Where/How to buy it
Since Bitcoin is the first decentralized currency ever, it translates to be the easiest to buy. The first step is to get a digital wallet and then buy Bitcoins to store on them.
In some developed lands, there are Bitcoin ATMs in strategic locations where you can easily purchase Bitcoins. Another way to buy is to use an online exchange to purchase it. With these exchanges, you can pay directly with your credit card.
Trading with Bitcoin
Many online stores now accept Bitcoin as a means of payment. For the few ones that do not accept it, relax, there is always a way around it. There are websites that can be used to buy anything over the internet from any retailer whatsoever, even if they do not accept bitcoins.
Anytime you want to make a purchase online, always make it a point of duty to check and confirm that they accept Bitcoin as a means of payment. You will be surprised to see how easy your online transactions will become. Trading in Bitcoin (buying and selling Bitcoin) is fun and simple, not only will it benefit you but also add to the stability of the digital currency.
This Bitcoin paper wallet is also called “cold storage” and it is the most secure of the four types of Bitcoin wallets because it lets you store your Bitcoin in any desired form of offline storage, independent of a computer, and that means hackers have no chance of reaching your funds and they can’t steal your money.