The wave of digitalization has shifted everything to the Internet, and the currency is one of them. It has converted traditional currency into digital currency. If we talk about digital currencies, one of the oldest and most popular digital currencies is bitcoin. Bitcoin is based on blockchain technology and had gained massive popularity in few years. But before you use bitcoins, you must have proper knowledge about them. You can Click Here if you want to gain more knowledge about bitcoins. Some of the most important aspects of bitcoin are mentioned below.
What is bitcoin?
First of all, you need to understand bitcoin and its functions. Bitcoin is a digital currency that you can use as a common medium of exchange and making payments for different gods and services. It is quite similar to fiat currencies as the only difference is that it has no physical appearance. Some of the top features that differentiate it from traditional currencies are;
Virtual – Bitcoin is an entirely virtual currency as it can neither be seen nor touched. It is entirely based on the Internet, and all the bitcoin transactions are recorded in a public ledger known as the blockchain. Blockchain provides the complete history of bitcoin transactions, and any user on the bitcoin network can access it as it is a public ledger.
Bitcoin is launched in the year 2008, and the name usually associated with its founder is ‘Satoshi Nakamoto,’ but no one knows who he is, where does he live, and even if he is alive or not. There are several reasons that have made people all over the world go crazy over bitcoins, and one of them is the elimination of intermediaries. Bitcoin allows users to make transactions without any bank or financial intermediary, which helps them to maintain their privacy, keep their information secure, and avoid paying hefty amounts as transaction charges.
Does bitcoin really hide your identity?
Privacy is quite important nowadays, and most of the users attracted to bitcoin as they believe it allows them to make anonymous transactions without revealing their identity. Bitcoin offers anonymity to its users to some extent, but it doesn’t make them untraceable. Hackers and secrete agencies can hack into almost anything on the Internet, so if you think your bitcoin transactions are untraceable, then it’s wrong. Hackers can find out the origin of any transaction recorded in the blockchain ledger by connecting numerous nodes to it.
Although it is quite difficult but with proper resources, skills, and technology, it is possible to link real identities with the bitcoin addresses and track the users of any transaction. The bitcoin addresses used by people to make transactions can be used by hackers to track the origin of the transaction.
How can you acquire bitcoins?
Bitcoin is no issue by any government as it is a decentralized currency that you can buy online. There are several payment methods through which you can buy bitcoins, such as cash, debit cards, credit cards, etc. To get bitcoins, you need to have a bitcoin wallet as it is necessary to store bitcoins and make transactions. There are different types of bitcoin wallets, and to choose the most suitable one, you need to keep all the factors in mind and pick the one that serves all your needs and requirements.
Another way to get bitcoins is bitcoin mining, the process of creating bitcoins online. Bitcoin mining is done by miners using special computers to solve complex mathematical problems. They get bitcoin rewards for each block they solve, and if you are good at mining, you can use it to get some bitcoins. Bitcoin mining is not an easy task as it requires special software and excellent knowledge.
Is it legal to mine bitcoins?
Bitcoin mining is an incredible way to get bitcoin with great ease, but several users have doubts if bitcoin mining is legal or not. It may sound illegal, but bitcoin mining is completely legal and is quite popular in the USA. There are no set rules and regulation regarding bitcoins as it keeps on changing over time. Currently, Bitcoin mining is legal, but nothing can be said for the future as it may get banned in the future. Bitcoin is still under development, and there are no clear laws related to it, which makes it risky to invest in it.