Bitcoin, as a currency of its time, was introduced way back in 2009. Up to now, most merchants are beginning to accept and acknowledge them as a way of trading. It is taking the stock exchange, forex and associate businesses by storm. As a new currency, its value overtakes the current trade currencies by far making it valuable and on high demand.
Why does one need to use bitcoins?
According to CNNMoney: What is Bitcoin?
They can be used anonymously in trade. Since the currency is not tied up to any country, international payments have been made to look cheaper and easier. Moreso, bitcoins are not subject to any regulations of given nations. Thus they are versatile and can be used flexibly.
Some individuals are currently purchasing bitcoins with a future target that they will appreciate in value in the future. They are taking them as a way of investment that will guarantee them profit in case of rising in value.
Small businesses are utilizing bitcoins because there are no credit fees attached to them and hence one can trade at his/her convenience. Based on the state of their businesses, it is a beneficial way by which they save transaction costs charged when using
How do you access bitcoins?
Bitcoin exchanges are marketplaces that allow people to trade in bitcoins. Individuals buy and sell the bitcoins in various currencies. Mt. Gox is the largest bitcoin market. The exchange rates set to govern the different bitcoin transactions that take place within the bitcoin marketplace.
There are also digital ways via which one can transact. There exist mobile applications and computer accessed sites that allow
the exchange of bitcoins for various currencies as well as buying bitcoins. People also do bitcoin mining by use of computers to solve some complex mathematical puzzles. Mining is the main way of creating bitcoins. There is approximate of 25 bitcoins won at a rate of 10 minutes as per statistics.
You can as well buy bitcoins using your currency. You give out your money in a given currency, and some bitcoins are calculated based on setting limits. The limits are usually the exchange rates laid down in the marketplace. They are bound to alterations depending on the economic state of a country and demand. Thus, it requires calculated steps and moves to take part in the business.
How can one store bitcoins?
Bitcoins mainly are stored in digital form. You create A digital wallet, and one can only access the wallet via an internet connection. The wallet is simply a virtual bank that allows the various traders and other users to access, send and receive bitcoins. Individuals can as well use the wallet for saving and paying for goods and services.
The buyer’s identification is by unique codes known as wallet credentials (wallet IDs). The names of the sellers usually kept a secret and hence are not revealed to anyone. All the transactions are private. Most people have found it as a way of buying and selling goods without being traced, and thus illicit business dealers have found it a currency of choice.
To some extent, you only need to register an online wallet or just download a mobile phone application and hence one sorted. No physical contact or transaction is required to own a portfolio. Moreso, the collection is free. You don’t need any particular form of documents to start trading. Thus the currency is versatile.
Is the future of bitcoins sure?
It is unpredictable and rhetoric to most traders. No one is certain of how the future will look like with bitcoins in the marketplace. Governments may find it difficult to operate with the currency whose standards cannot be estimated and taxed appropriately or controlled like other currencies.
Currently, you may have a notion that bitcoins will come to take over other currencies. The concept may sound confident only if all the economies embrace it. On the other hand, its estimated to rise in value and significantly exceed other high-value currencies like the pound and the dollar.
However, everyone remains optimistic and takes bitcoin as a new vivid way of trade embraced by various individuals in given classes and ranks.
You can make Bitcoin transactions entirely without intermediaries. One only needs a bitcoin wallet. The wallet is virtual. Through mobile phone applications and computer web-based access, you can access the various marketplaces and exchange bitcoins. There is no bank that stores and organizes bitcoin transactions.
One can describe the operations as entirely virtual and not subject to any specific governing rules and limits. You set your safety measures and standards by which you participate in trade. An individual bears the losses solely as one just in case it occurs.
Are there benefits of trading with bitcoins?
A shift in currency may take place as a revolution in the stock exchange market. Bitcoins mainly offer an advantage in being versatile and universal. They are as well charge free as they are currently not taxed thus no transaction costs. Accessibility and transitions are natural and digitally undertaken. Contrary to the highlighted benefits, the following pokes some danger within the entire system of trading in bitcoins;
There is a loophole of illegal business. As a trader, you take advantage of the concealed identity to engage in an illicit activity
such as drug dealing and other associated companies. It is advantageous by the undertakers contrary to the government rules and regulations. The business is a major setback in building good morals in the society. Therefore it leads to moral decay. There have been cases of embezzlement of bitcoins in the main bitcoin market of Mt. Gox.
The incident punches holes in the entire business, and the question is, are bitcoins the best option yet? The answer will entirely depend on your experience. But for the victims of losses, it is absolutely no. Bitcoins to them are like a plague that should be acted upon with immediate effect. But what is the permanent and long-term remedy to this?