The use of cash in the U.S. is very common, however, the search for security and transparency when handling money has made users use alternatives such as paying online or using debit and credit cards. However, lately, the use of virtual currencies has become very common, with Bitcoins being a benchmark for these practices.
But… What is Bitcoin?
Bitcoin is a virtual currency that appeared in 2009 and that is intangible, that is; that cannot be touched or felt like the bill that is known today. As with the money that you have in the bank, it is possible to increase or decrease the number of bitcoins, depending on expenses and income, another peculiarity of this product is that although payments can be made, it cannot be physically available, such as if it is done when money is withdrawn from the ATM.
There are 5 keys that will help you understand the use of Bitcoins a little better.
How much does a Bitcoin cost?
- It all depends on your requirement, as with other currencies, bitcoin is valued according to its supply and demand in the market.
- The popularity of the currency with users has made its value grow steadily, since bitcoin was created, its price has multiplied about 50 times more.
There are several calculators that calculate currencies in real-time, an important detail to take into account is that Bitcoin has a limit of 21 million currencies, which is expected to reach in 2041. As reported by the Market Times.
Who regulates bitcoin?
Bitcoin is not regulated by any financial authority, therefore its transactions are irrevocable. Users have no one to claim in case of fraud, theft, loss or change in value.
By not being monitored the transactions are free of any commission or taxes.
How are Bitcoins acquired?
To access a Bitcoin account, you only need to download one of the applications available for any operating system. A type of “wallet” or “purse” will be created to which you will only have access with a password for personal use with which you can carry out transactional operations.
How to get bitcoins?
To get coins of this type there are 3 possibilities:
- The simplest of all ways is to enter one of the Bitcoin stores such as “Cex.io” and exchange conventional money such as pesos, dollars or euros for these currencies.
- The exchange of goods between users is also a simple way to buy and sell through bitcoins.
- The strangest of all the ways to get a Bitcoin is “Mining”, which consists of solving very complex mathematical problems from the computer in exchange for winning bitcoins.
Characteristics of a bitcoin.
Privacy. Bitcoin is a currency that, being of a person-to-person type, no one has access to the information of the purchase or any other transaction. And since there is no need to leave any personal data, the risk of falling into the hands of cybercriminals is reduced.
Speed. Taking into account that the money is sent online and without intermediaries, the maximum that the transaction can take is 10 minutes.
Serves all over the world. Performing transactions with this currency from anywhere in the world is possible, even in countries where it is not possible to have Paypal accounts, in addition, the time or holidays are not taken into account and there are no limits, users are free to manage your money.
What happens when bitcoins are lost?
When the bitcoins are lost from the wallet or purse, they will always be in the blockchain like the rest of the currencies, however, it will be inactive money since there is no possibility that someone will find the private keys to be used.
The use of this type of currency is free, however, you must bear in mind that as with any other monetary resource, there are negative factors that can affect your economy. As there is no regulatory entity, there is no possibility that they will respond to you if you suffer a mishap with your wallet.
That is why there is nothing better than having backing or support, remember that the financial sector offers you different services and products capable of getting you out of trouble and contributing to the improvement of your quality of life.
Probably wanna read:
- What is Ethereum and what impact does it have on the market?
- What to do to invest in the stock market and make a profit?
- Can I mine cryptocurrencies from home? How to get in and how much can you earn with a homemade “farm”