What Is Bitcoin
Bitcoin is a digital currency or cryptocurrency which was invented in 2009 by a group of people who operated with the name Satoshi Nakamoto. It follows the decentralization method in the absence of a single administrator or central bank. There is no agreement linked between two people when they send currency from one to another. You need a digital wallet to send currency on the peer to peer bitcoin network.
How Do You Use Bitcoin
Bitcoin is a smartphone app or a computer program. By having a digital wallet app you can obtain the service of bitcoin for yourself. You can buy and sell bitcoins by using real money. After buying bitcoins you can pay your bills with it if the company accepts cryptocurrency. Also, you can trade it with fiat currencies like the EURO, USD, AUD, etc. You can even get bitcoin loans by using a bitcoin digital wallet.
How To Get A Bitcoin Loan
As I have mentioned earlier to transact with bitcoins you need to have a digital wallet. After creating a digital wallet account, deposit bitcoin to assure a loan by specifying the desired amount for loan, terms, interest rate, the currency of the loan and the other options they seek. By committing your digital currency for a specific date you can obtain a secure interest rate.
Bitcoins can be used anonymously which attracts traders to use Bitcoin. But to recognize every individual, transactions are recorded in a blockchain. Blockchain is a public list that will help individuals to spend their coins and prevent spending other people’s coins.
Advantages and Disadvantages of Bitcoin
Advantages
The Freedom of Payment– Bitcoin allows the send and receive policy even on holidays from any corner of the world.
Lower Cost– The cost of receiving and sending bitcoins via any wallet can be decreased by many digital wallets. The cost depends on the wallet as bitcoin allows higher transactions within the minimum cost.
Less Risky Trades– Bitcoin transactions can be anonymous and secured. They do not contain customers’ data which protects the customers from fraud cases.
Secured– No one can be forced to take unwanted charges or get a charge without notifying the user. Customers can secure their money safely by having a backup or encryption. Bitcoin is cryptographically secured which ensures that no one can deceive the protocol to mislead the customers.
Disadvantages
Comparatively Low Reach– Many businesses and facilities unenlightened about bitcoin and its usage.Although, it is being recognized gradually in the business world.
Still Developing– The development of bitcoin is still in process. The software still contains many imperfect and unfinished features. There are many new bitcoin businesses and do not ensure any insurance.
Scammers– There are many hoax rumors and cases regarding Bitcoin. By showing technology issues, coin offerings, fake exchange reviews many frauds are conning users.
Hackers– We live in an era where technology is leading us to the peak. But sometimes technology can let us down too. Hacking in Bitcoin is not a new case. The hacking may cause the user to lose a large amount of bitcoins.
Conclusion
Bitcoin is one of the most popular and cheap currency transaction methods for international transactions or payments. Bitcoin has been growing throughout its invention and may expand in near future. There is a prediction about Bitcoin’s price that by the end of 2022, it may increase to 125,000 US dollars.
