Bitcoin is a worldwide cryptocurrency and digital payment system called the first decentralized digital currency, since the system works without a central repository or single administrator. It was invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto and released as open-source software in 2009.
The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin can also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
Advantages of Bitcoin:
Bitcoins are very common today and are used by many people to make online payments. Since the introduction of the first 50 Bitcoins, the number of Cryptic Currency has increased immensely and now Bitcoins are used all over the world. This is no wonder, as the currency does indeed have some advantages:
- There are no limits when you as a customer want to transfer money with Bitcoin.
- Worldwide acceptance, be it in South Korea, Russia, Venezuela or Switzerland, everyone is already trading heavily in Bitcoin.
- The Blockchain technology enables
decentralization. This means that several users worldwide work on the
transaction simultaneously. Thus, the system is not affected by local
failures.
Protected privacy - On the Bitcoin website and other sites on the net, you will find large communities that provide information on the use of the currency. This gives you the chance to talk to many other Bitcoin users if there are any questions about the Bitcoins or the payment process that you should be able to deal with on your own.
- With your own paperwallet the money is protected from unauthorized access. In contrast, a bank could theoretically loot the bank account.
Disadvantages of Bitcoin:
It is remarkable that even on the German website of Bitcoin you can find a list of disadvantages. Here one can see that the Bitcoin Community sees itself indeed as still developable and attaches importance to represent everything transparently - it concerns them around information switching. Now we would like to present you with some more information about Bitcoin.
- High transfer costs, especially for small amounts the fees can be higher than the transfer sum
- Slow transaction, in extreme cases a transfer has already taken up to 2 days
- Of course, you should be aware that your Bitcoins are no guarantee against losing money. Bitcoins can actually become worthless because they are a digital currency and no currency in the world is protected from falling in value or even becoming worthless. In the case of Bitcoins, this cannot happen through inflation, but there are reasons such as technical failure which can indeed cause Bitcoins to become worthless.
- Cybercrime, money laundering and other nasty machinations of criminals. Thus in the social media much advertisement for Bitcoin commercial robots such as Cryptosoft or the like is made, with which horrendous profit sums are promised, which can naturally never be obtained.
- Price fluctuations by investors
- A further danger emanates from the established currencies, their guardians and state governments. They will certainly not watch their currencies lose value without a fight. But the value of all Bitcoins is still far too low to cause fears among banks or governments.
- The acceptance of Bitcoins in many webshops is unfortunately still very much expandable, especially here in Germany.
- In addition, there are no ATMs "offline", as is the case with our neighbors in Austria or Switzerland, where ATMs are already very common, so that everyone can quickly buy a few Bitcoins.
- Many people react very dismissively to the topic Bitcoin, it reminds of the time like the Internet started or the first cell phones came on the market.
- The anonymous background to the emergence as well
as the hype at the end of 2017 and the subsequent loss of value deter many
people.
Rather a topic for younger people - Unfortunately, Bitcoins are not yet so widespread
that one can claim to be able to make payments with Bitcoins anywhere on
the net. So there is still work to be done in this area.
Bitcoin is still in the initial phase and has extremely large potential. At times a Bitcoin was worth more than an ounce of gold!
Deposit and withdrawal at Bitcoin:
The acquisition of Bitcoins is quite simple, because for this there is a quantity of commercial sides in the net. There is no direct deposit for the Bitcoins, but there are different chances to get Bitcoin (and also other crypto currencies) Here we have put together four possibilities for you:
- Simply get Bitcoins through regular "claims" with faucets (we have put together a large selection, all free)
- In exchange for goods
- The direct and simplest way is the purchase of Bitcoins (e.g. with commercial stock exchanges such as Coinbase or Bitcoin.de), comes equal to the trade with gold and/or shares.
- Exchange Bitcoins against other crypto currencies, like Ethereum, Dash, Bitcoin Cash, IOTA or Ripple.
Before you think about buying Bitcoins, you need to know that a wallet is required for storage. Rather the address to a Wallet. You don't have to set up a wallet on your computer or laptop. It is sufficient to register with a trading place like Coinbase or Bitcoin.de. When you buy Bitcoin, you will automatically receive a wallet address (similar to an account at an online bank). If you later sell your Bitcoin on the same platform, you will receive the equivalent value in euros or dollars, if you wish.
Questions about Bitcoin
The FAQ section on Bitcoin is very large, as many people continue to find out about the topic day after day. Many questions are answered here and even disadvantages of the currency are not swept under the carpet. Here you have the chance to familiarize yourself intensively before you create a wallet and of course you will also find detailed explanations on how to carry out the transactions. Bitcoin also has its own very informative Wiki. Otherwise, you can of course access the various communities, where you can interact with other Bitcoin users and learn more about the system and its application.
Conclusion on Bitcoin:
Bitcoin did not arrive still for a long time at the end of the development, completely on the contrary, we believe Bitcoin stands only still at the beginning. The course for Bitcoin is still intact despite the hype year 2018, even though there has been a major slippage.
Unfortunately one reads constantly also of the fact that hackers penetrated into commercial platforms and could steal million values at crypto currencies, these messages lead naturally to uncertainties with potential prospective customers. Nevertheless, the number of transactions for Bitcoins continues to rise from month to month, new Bitcoin machines are set up every day and more and more services now offer the payment function in Bitcoin.
It is the spearhead for all crypto currencies and the prime example of block chain technology. Just because of this enormous awareness and the fact that the markets cannot get enough of digital currencies, we see the future of this lead currency for crypto currencies very positively. In the short term it may still go downhill but in the medium to long term Bitcoin is unstoppable worldwide.
