If you are not familiar with bitcoin, it is essentially a type of cryptocurrency that is independent of banks and governments. Rather, it is operated using open source software. A lot of people are now investing in it and it has grown in popularity since its introduction in 2009. In fact, it is now so popular that you can use a bitcoin wallet app to purchase physical goods, including pizzas or web hosting services.
The Bitcoin Wallet App and Trades
If you trade in bitcoin, you do so anonymously. The currency isn’t tied to an individual or a country, and there are no regulations in place either. This is why even small businesses are using it, as they can make transactions for free. People who have savings now often purchase bitcoins and create a profit, due to the rise in interest in cryptocurrency.
Bitcoins are bought and sold on markets bitcoin exchanges. Here, you use your national currency and exchange it for bitcoin, or the other way around. All you need is an account and a bitcoin wallet, and you will be able to participate in exchanges. You can use Android smartphones to have a wallet app, which means you can exchange bitcoin on the go. There are now even some special ATMs where you can exchange in bitcoins!
You can also decide to mine, however. This means that you have to solve complex mathematical equations that enable you to earn bitcoin. This takes a lot of time and effort, but you could solve one in about 10 minutes and earn 25 bitcoin.
Once you get your first bitcoin, you will need to store them somewhere, which is done in the wallet. This is like a virtual bank account, only without the bank attached to it. You don’t have to tell anyone your name of personal details. Rather, you will be assigned a bitcoin ID, and that is what you use to make private transactions. What this means is that it is possible to purchase or sell whatever you like, and nobody can ever know where it came for. Cryptography is used to verify the transactions, which means they are underpinned by a series of algorithms that only a very powerful computer would be able to resolve. This is what makes the market so secure, but also completely legal.
The bitcoin market and system perfectly control the number of bitcoins that are created. The mathematical equations offered to miners become increasingly difficult to solve. This means that only a set number of bitcoins are ever awarded.
What bitcoin isn’t, is a current that you can invest in with ease, like Euros or Pounds. However, it is a currency in its own rights and it is likely that it is going to get increasingly popular. This is because there is no need to pay for a transaction fee. Some say that, soon, cryptocurrency like bitcoin will be the only type of currency still around, one that is completely decentralized.