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All You Need To Know About Bitcoins

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In 2009, someone used the alias Satoshi Nakamoto to create a new currency known as the Bitcoin. The best part? There are no middle-men involved in the transactions which mean that now you are far away from the bankers. Other advantages include your real name not being involved and no transaction fee as well. They are being accepted by more and more people and can be used to buy web hosting servers, pizzas or manicures.

Why Use Them?

They can easily be used to anonymously buy anything. The biggest advantage being that the payments are cheap and easy because this is the kind of currency which is not tied to any country and is not even subject to regulations. They are the favorites of small businesses because there is no credit card fee involved. People invest in them as well with the hope that their value will increase with time.

Obtaining Bitcoins

Buying them on Exchange

People can easily buy or sell bitcoins using their respective currencies in marketplaces which are known as “bitcoin exchanges”. The largest out of them is Mt. Gox.

Transferring Bitcoins

Bitcoins can easily be transferred easily from one account to another using computers or mobile apps. The provide quite an ease by being digital cash.

Mining to Earn Bitcoins

People solve complex mathematical puzzles and problems on computers or mobiles to “mine” bitcoins. This is one of the most important ways of creating bitcoins. Every 10 minutes a winner is rewarded with 25 bitcoins in the current scenario.

Owning the Bitcoins

They can easily be stored in a digital wallet which is either on the cloud or on your mobile or computer. You can call this wallet your virtual bank account which can easily be used to keep the bitcoins safe, send or receive them from other users, or paying for the goods or services which you purchase. One thing to keep in mind is that these virtual wallets are not insured like the usual bank accounts by the FDIC.

The bitcoins on the cloud or servers can be hacked by other users or even companies. On the other hand, the ones in your mobile or computer can accidently get deleted or destroyed by a virus.

Anonymity of Owning Bitcoins

The names of none of the buyers or the sellers are revealed. However, each transaction is recorded in the public log with the wallet ID of the users. This means that not only the transactions made by the users are safe but also none of the transactions can actually lead to them being traced. This is the reason that bitcoins have become the utmost choice of all those who want to buy drugs or carry out any illegal activities online.

The Future of Bitcoins

The governments are already concerned about the taxation of the currency and their lack of control in this matter. The future of bitcoins is still unsure because they are unregulated but this could change anytime.

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About Palwasha Qasim

Palwasha Qasim is a graduate of the University of the Punjab in communication studies and an alum of the Global UGRAD Pakistan. She loves to write about technology news.