The majority of people is not familiar with the concept of Bitcoin. They think of it as an online scam tool that criminals use to steal money; which is not true. It is a peer to peer, a digital currency which is independent of any sort of third-party influence.
There are several advantages of using Bitcoin and those with the experience of Bitcoin transactions are fully aware of how to capitalize on this cryptocurrency. However, if you are new to the concept, you will need to go in depth and know how it can benefit you.
Benefits of Bitcoin:
Bitcoin Advantages for New Users – Easy to Open a Bitcoin Wallet Address:
Opening a Bitcoin Wallet Address, also known as “wallet”, is pretty straight forward. No credit check ID, citizenship papers, age requirements or passport are needed to open the account. Since there are no age restrictions, anyone can open a Bitcoin account, even if it means a 10-year old kid.
Want to learn more about Bitcoin wallet? Read our post on how to make a Bitcoin wallet.
No Need for Bank Approval to Launch Your Business Idea:
Starting new business is a difficult financial task as you will be required to have a bank loan or credit check. But with Bitcoin, launching a new business is not a problem anymore.
All you need is a QR code. Once you have it, post it on a social media platform and get support for your next business idea.
The idea may include offering services, a product or something valuable in exchange for Bitcoin.
Quick Access to The Rest of Digital Currencies/Altcoins:
Digital currency is a vast world and Bitcoin is just a small part of it. The other part is altcoins in which hundreds of millions are invested each year. To access the Altcoin market, you will need to have Bitcoin as it is to digital currency what US dollar is to traditional currency worldwide.
Before you move ahead, don’t forget to read what are some alternative currencies to Bitcoin.
Bitcoin IPOs are becoming a new financing option in the world of Bitcoin. The users can offer bonds, stock, and IPOs and buy/sell shares of their companies without the need of any established stock exchange.
The Cryptocurrency Has Numerous Advantages as Compared to Traditional Currency:
Bitcoin can do many things that dollar can’t. For example, it offers family wallets with pre-set spending limit which allows your kids to shop only at certain stores and at certain times. Moreover, it gives the owners the option to program digital currency for different parameters which are not possible in fiat currency.
Bitcoins Are Independent:
If you don’t like being watched or controlled by your government or third party, then trading in Bitcoin is the best option for you.
Bitcoin is more like a technology. A technology with code and encryption keys. The technology is not controlled by any government or central bank. The only person who controls Bitcoin is the one who owns it.
These are some advantages of Bitcoin for new users. The currency is relatively new and still, needs plenty of improvement. However, with the kind of structure it has and the rapidly growing usage, the currency is going to make a great impact on future markets.
Bitcoin is a cryptocurrency without any delegates or banks required to direct transactions. It was built as open-source software in 2009 by an individual or a group referred to as Satoshi Nakamoto with the idea to limit transaction costs and deregulate money. There are many ways of buying Bitcoin. Here we are going to discuss the easiest way to buy Bitcoin.
Buy Bitcoin Through Wallets:
The easiest way to buy bitcoins is through digital wallets. CoinBase is the most renowned wallet. All you need to use this wallet is sign up for an account and link your bank account.
The reason why it is considered the easiest way to get bitcoins is because it allows the option of buying bitcoin through Visa and Master Card.
Other Ways to Purchase Bitcoin:
Another fastest way to buy Bitcoin is buying it through local bitcoins. Here you go to localbitcoins.com and setup a meetup with a local Bitcoin seller in your area. Make sure that the meetup is kept at a public area or somewhere you are completely familiar with. Local Bitcoin deals have a history of taking unpleasant turns so you must take every precaution before making the transaction.
Bitcoin faucets are also considered the fastest way to buy bitcoins. Bitcoin faucets are programs that are designed to distribute bitcoins in fractions to the visitors to claim. There is a time interval between each Bitcoin batch that is released and the visitors must wait through it.
In earlier days, the concept of money used to be a physical substance, such as gold and silver. Some ancient cultures used living things as a form of money – cattle were one of the oldest forms of money.
However, the modern world is becoming more technology centered. Ever since the introduction of the internet, everything, from space to schools and shopping centers is dependent on the internet, and even online transactions have suddenly become a THING! More and more people are starting to make online trades, as it gives them the ease to purchase any desired item without having to leave the comfort of their bedroom.
Many of these purchases are often made with e-money or Bitcoin – the most widely used form of digital currency.
The currency first came into circulation in 2009. During that short time span, Bitcoin was able to spark a lot of attention and worldwide interest. As a result, many merchants are now starting to accept Bitcoin payments for their services.
However, despite all the talk about how people nowadays keep themselves updated with the latest technological innovations, many still seem to struggle when it comes to differentiating between Bitcoin and e-money.
In this article, we’ve outlined how E-money and Bitcoin are different from each other. Let us begin.
How are they different?
Electronic Money aka e-money and Bitcoin are two systems for making payments that are digital in nature. Besides that, nothing is common between the two.
Electronic money is a mechanism designed to interact with traditional currency such as Euros and Dollars. Whereas, Bitcoin is an independent cryptocurrency with its developers and users having complete control over it.
Some anonymous programmers using the pseudonym, Satoshi Nakamoto, launched Bitcoin in 2009. It’s a digital file that consists every transaction that has ever happened in the network in its ledger, aka, block chain.
Bitcoins are not like fiat money, they are mined using computer power of high-tech computers in a distributed global network of volunteer “miners”.
The money balance recorded electronically on a stored-value card is electronic money. Unlike Bitcoin, e-money is under the regulations and controlling of the Government central banking system. Banks and customers would have public-key encryption keys. Public-key encryption keys come in pairs. Only the owner knows the private key whereas the public key is available to everyone.
In comparison, Bitcoin is strictly limited to Internet connection but E-money just requires access to electronic devices like mobile phones and an agent network. Also, e-money is equal to the amount of fiat money in exchange for electronic form whereas, Bitcoin has no possibility of reaching the real world in the form of a bill.
Example of a system supporting E-money
M-PESA is a mobile phone money transfer system that had launched in Kenya in 2007. It starts with converting fiat money into an equal e-balance, by only entering the recipient’s mobile number and the transferred amount. The issuer confirms the transaction by sending an SMS to the recipient. The benefit of this method is to eliminate the interference of banks which makes it so popular and successful in Kenya.
E-money and Bitcoin have their pros and cons but it is solely the responsibility of the user on how they handle their earnings. If more and more people shift from paper money to virtual currencies, this could irreversibly change our lives and social interactions.
Bitcoin is a form of digital money – also known as cryptocurrency that is free from the influence of any bank or governing authority. Bitcoin is used to make transactions anonymously on the global scale. The currency was created by a group called Satoshi Nakamoto and first came into circulation in 2009. The identity of group members is still unknown.
The usage of Bitcoin is increasing and the number of people making Bitcoin transactions is growing each day.
If you are one of the people who feel fascinated by this form of money and want to discover more about it, here are some intriguing Bitcoin facts for you.
There Is No Authority to Control This Currency:
You might be surprised to know that there is no entity that controls Bitcoin. The general concept of money is that it is controlled by a bank or other concerning authorities. But this is not the case with Bitcoin. The currency is autonomous from all sorts of regulatory authorities. The only person who can control the coins is the one who owns it.
Bitcoins Are Finite:
As bitcoins are not printed into cash or molded into physical coins, most people think that there should be an infinite number of bitcoins in existence. But this is not the case because if it were true, the coins would lose their worth. In order to keep them worth having, bitcoins are kept finite. The exact number of existing bitcoins is 21 million.
Bitcoin Has No Set Values:
There are no set values on Bitcoin. In fact, how much a bitcoin is worth depends on the popularity of the currency. The more people use it, the more it appreciates in value.
Bitcoin is Transparent:
Bitcoin is completely transparent in terms of transactions and amount. Each and every detail related to a transaction is available on blockchain. This openness, as a result, induces trust and security among the Bitcoin users.
In Bitcoin mining, the users are supposed to solve mathematical problems using a specialized software to verify transactions around the globe. The users in return, are paid if their efforts were successful.
Bitcoin Transactions Are Irreversible:
The Bitcoin transactions are irreversible and a user can never be forced to pay. Once the bitcoins are paid, there is no way to revoke the transaction or force the receiver to pay back your coins.
It Costs Little to No Money to Make a Transaction:
Bitcoin transactions cost little to no money. There are no taxes on the currency and it doesn’t matter to which part of the world you send the money, there are no cuts on transactions and the receiver gets the exact amount that was sent to him.
Lastly -Bitcoins Are Stored in Digital Wallets:
Bitcoin wallets are equivalent to bank accounts for real cash. These wallets are used to store, withdraw and transfer bitcoins from one wallet to another. The wallets are protected by a security key and only the owner can know about it until he reveals it someone else.
Tags: digital currency bitcoin
Bitcoin mining is done through a hardware called bitcoin miner. The hardware can be divided into three main categories, each more expensive and powerful than other.
Here, we have explained each category and described how to set up a Bitcoin miner.
While setting up a bitcoin miner, the first thing you will need to do is to choose the hardware, and there are two main things to particularly think about: hash rate and energy consumption.
Hash rate is the number of calculations per second performed by the miner to crack the mathematical problems in Bitcoin mining setup.
They are measured in Megahashes (MH/sec), Gigahashes(GH/sec), and Terahashes (TH/sec) per second.
The higher your hash rate, the easier it is to solve a transaction block.
Mining equipment is unfathomably powerful and chews up a gigantic amount of electricity, which, ultimately results in higher costs.
While searching for the equipment, make sure its energy consumption is in watts. You need to ensure that you don’t wind up spending the majority of your cash on electricity bills to mine coins that won’t be worth what you paid.
In case you need to work out how many hashes you are getting for each watt of electricity, divide the hash tally by the number of watts consumed.
For instance, a device with 500 GH/sec that takes 400 watts of electricity, then you’re getting 1.25 GH/sec per watt.
You can also use several online electricity price calculators to figure out the value in traditional currency.
Types of Mining Hardware:
Bitcoin Mining pc comes in three major categories, GPU/CPU, FPGA, and ASIC.
The least powerful consuming machine to mine Bitcoin is your very own regular PC. Theoretically, you can use a regular PC for mining purpose, but its processing is so slow, there is no point in using it.
To enhance the processing power i.e. hash rate, add a graphics hardware to your PC. The hardware features graphical processing units (GPUs).
GPUs are intended for overwhelming mathematical lifting which is utilized as a part of computing all the complex polygons required in the top of the line computer games.
This ability makes them great at the SHA hashing mathematics which is essential for solving transaction blocks.
FPGA (Field Programmable Gate Array) empowers a mining equipment producer to purchase the chips in volume, and afterward customize them for Bitcoin mining before placing them into their own particular gear.
Due to the fact that they are customized for mining, they offer enhanced performance as compared to CPUs and GPUs.
ASIC Bitcoin Miners:
Application Specific Integrated Circuit (ASIC) is where all the action takes place. ASICs are particularly manufactured perform only one task: mine bitcoins at mind-squashing speeds, with lower power consumption.
Because ASICs are designed specifically for high-speed mining, they are expensive and time-consuming to produce. However, the speeds are unbelievably fast.
The current units can reach the hash rates between 5-500 Gigahashes/sec, and the future units are promised to go even higher.
All Set? Join a Pool:
When you have Bitcoin mining set up, your next stride is to join a mining pool. Bitcoin miners put their assets and share their hashing power in these pools. Once the mining completes, the individuals from a pool get a reward which is then split among all the members, based on the number of hashes shared by an individual.