Bitcoins – Should You Use Them?

Bitcoin was launched as a private initiative in 2009. Unlike traditional currencies, including the Euro, Sterling and Money, it is not handled with a central economic authority. Instead, it is underpinned with a peer-to-peer network of its users’ computers. This is a lot like how Skype, an online video chat service, operates.

The basic unit of value is the bitcoin. On the other hand each bitcoin can be subdivided into satoshies. A single satoshi is corresponding to one hundred millionth of a bitcoin (ie, a bitcoin divided to eight quebrado places). 

Bitcoins and satoshies can be transferred from one internet user to another in order to cover goods or services at nearly zero cost. This kind of allows you to make international transfers without having to waste time with exchange rates and onerous loan company charges. Bitcoins can be bought and sold for traditional cash at special exchanges.

Bitcoin wallets

In order to use Bitcoin, you desire a wallet, a special piece of software in which you store, send and receive bitcoins. There are three varieties of wallets, software purses, mobile wallets and web wallets.

Software wallets are installed on your laptop or computer and they give you full control of your finances. Mobile wallets are installed in your smartphone or tablet and allow you to have Bitcoin for daily transactions in retailers and supermarkets by scanning services a quick response (QR) code. Web wallets are located on the Globe Wide Web, ie they can be a form of cloud storage.

Payments using bitcoins are simple. They can be made from wallets and handbags on your pc or smartphone just by entering the receiver’s address, the quantity and then pressing send. Smartphones can also get a receiver’s address by scanning a QR code or by getting two phones that contain near-field-communication (NFC) technology, a form of radio communication, near each other.

Acquiring payments is merely as easy… all you have to do is give the payer your bitcoin address.

Protecting your finances

A bitcoin wallet is similar to a wallet packed with cash. To reduce the risk of loss, you should keep only a small amount of bitcoins in your laptop or computer or smartphone and keep the majority of your bitcoins in a more secure environment, such as an offline wallet. Provided your wallet has been protected, an offline back-up will allow you to recoup your wallet, should your computer or smartphone be stolen.

Encrypting your pocket allows you to collection a password that must be input before cash in hand can be withdrawn. On the other hand, recovering a bitcoin username and password is impossible whether it is lost. That is why you need to be sure you can remember your password. If the value of your bitcoins is significant, you may store the password in a traditional bank vault or wherever you store important papers.

In order to be as secure as possible, you should store off-line back-ups in several locations using various media such as USB flash drives and CDs.

Because bitcoin works on software you down load to your computer (PC or laptop) or touch screen phone, you need to upgrade this software regularly in order to keep your wallets and transactions safe.

Advantages of bitcoins

Bitcoins have several significant advantages:

1-you can send and receive limitless amounts of money instantly at any time to and from anywhere in the world.

2-processing does not cost any fees or only very small fees.

3-bitcoin transactions are irreversible, which protects sellers from the fraudulent chargebacks that are increasingly common with bank cards.

4-payments are made without information that is personal being exchanged, which provides strong protection against identity theft.

5-the invoice and payment process is completely neutral, transparent and predictable.

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