Bitcoin : A Digital Currency

What is Bitcoin?

Bitcoin is the first decentralized digital currency. Bitcoin is a digital coin which you can send through the internet at a simple click. Bitcoin can transfer from person to person by internet without any bank charge or any transaction charge. Sending a Bitcoin is just simple as sending emails.

Bitcoin : Digital Currency

You saw your own currency and now you are seeing a digital currency called bitcoin. Bitcoin was released in 2009 and it was a great revolution in international payments. It is a digital payment which works peer to peer.

 

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  • Bitcoins can be earned as a reward by Data Mining using computer power in a distributed network.
  • In simple words bitcoins is an open source software to transfer money over the internet without any transaction and service fees and no possibility of counterfeit due to its highly secured communications. Bitcoins are used by more than 200 million people in 2017.

 

Characteristics :
  • FAST :  The Bitcoin network processes payments almost instantaneously, it normally takes just a few minutes for someone on the other side of the world to receive the money, while normal bank transfers can take several days. You have a user id and password as your bank account number and ATM pin no to generate your bitcoin.
  • EASY SETUP :  Bitcoin is easy to setup, Just install the software, set up a wallet and there you go. Unlike others, where you have to go through several methods. You can easily use this digital currency through your wallet.
  • ANONYMOUS :  Unlike Banks who always keep records of their clients, the Bitcoin wallet doesn’t have to be linked to any personally identifying information.
  • DECENTRALIZED : Bitcoin is independent currency, it is not managed or controlled by a single central administration like bank or credit card company. A pure Peer -2- Peer network, Keeping money moving even if the network goes down.
  • TRANSACTION FEES :  There are no transaction fees, no service charge, no charge for international payments. You can easily transfer to your friends or buy any product, there is no extra transaction fees such as most of the banks charge you. Since it is decentralized, there is no middleman (credit card company) to take away your money.
  • BLOCKCHAIN TECHNOLOGY : Every transaction details are recorded and distributed to the crowds using bitcoin software rather than relying on single admin (like a bank). This helps in preventing fraud cases. I will give another post about the total concept of Blockchain Technology.

Advantage :
  • I have told in the characteristics section that it has no transaction fees. It is the most valuable advantage of using bitcoin.
  • The fast and easy setup of digital wallet and easy international transaction all over the world. this transaction is so fast like sending an email.
  • There is no central authority in this transaction. For the reason, there is so any transaction charge or third-party charge for the transaction.
  • You must have a private key to generate your this digital currency like as your ATM pin.
Disadvantage :
  • First of all, the main disadvantage of using bitcoin is if you lose your unique private key or forget this, then you lose your bitcoin. Many of bitcoin users are suffering the problem by losing private key.
  • Not recognized in many countries, even banned.
  • Exposure to Bitcoin-specific scams and fraud.
  • There is no refund for this transaction if you buy any products by using bitcoin.

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