Bitcoin is a form of digital currency providing a decentralized peer-to-peer payment network. The Bitcoin protocol and software are completely open source. One of the main concepts behind the cryptocurrency is a public ledger called the “block chain”. Transactions are sent with the use of a public and private key and recorded in the private log. The very concept of cryptocurrency implies its decentralization, i.e. independence from a central authority figure. Bitcoin transactions are irreversible, meaning they cannot be claimed back.
Bitcoin has a relatively few acceptance and recognition in relation to fiat currencies, although an increasing number of merchants are beginning to accept BTC payments. Bitcoin has no risk of inflation, which is especially important in countries with unstable monetary systems. It has a stronger privacy protection than traditional payment systems, allowing users to completely prevent access to their personal financial data.
There is no official Bitcoin price, it is determined by the law of supply and demand. The supply can be assumed to be constant (21 mio), while the demand is constantly growing.
Bitcoin is also a convenient payment solution. Payments in BTC can be easily sent and received throughout the world via a desktop or mobile application if one has an Internet connection. One of its major advantages is that a Bitcoin wallet cannot be stolen without a physical access to a user’s computer/device.
Many Bitcoin features are still to be developed, but the growing popularity of Bitcoin confirms its great innovative potential.
The advantages of using Bitcoin:
- No intermediaries or centralized financial institutions are required to secure a transaction.
- With the block chain technology, all transactions are public and can be verified by all participants in the network.
- The software is open source.
- Each Bitcoin wallet can be backed up and encrypted, which helps you keep your coins secure.
- The technology provides relatively fast transfers, available 24/7.
- No commission is charged for transfers.
- As long as one observes the necessary security measures, Bitcoins are hard to be lost or stolen.
Extensive information on Bitcoin can be found in FAQ on the dedicated website.