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What is bitcoin? What is it used for and how does it work? Bitcoin is a digital or virtual currency that uses peer-to-peer technology to facilitate instant payments. Bitcoin is decentralized, meaning it isn't subject to government or financial institution control. The network is powered by its users with no central authority or middlemen.
From a user perspective, Bitcoin is pretty much like cash for the Internet. How do people get bitcoins? As payment for goods or services. Purchase bitcoins at a Bitcoin exchange. Exchange bitcoins with someone near you. Earn bitcoins through competitive mining. What are the benefits of Bitcoin? Users are in full control of their payments and cannot receive unapproved charges such as with credit card fraud. Bitcoin payments are irreversible, so if a transaction goes wrong, the funds will return to the buyer. Bitcoin can also be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it.
The price of bitcoin fluctuates on a daily basis, and can see some significant price swings. Prices can be affected by numerous factors including media coverage, speculation and more. What's the difference between Bitcoin and blockchain? Bitcoin is powered by blockchain technology, however they are not the same thing. Blockchain is the underlying technology that makes Bitcoin possible while also being useful in other applications such as smart contracts and supply chain management. What is an example of a bitcoin wallet? A bitcoin wallet stores the private keys required to make bitcoin transactions. These wallets can take many different forms but all essentially serve the same purpose: To help you send and receive bitcoins safely while also storing your Private Keys securely.
Examples of popular wallets include: Jaxx, Blockchain Wallet, Exodus, Mycelium Wallet and GreenAddress. What's next for bitcoin? Only time will tell what will become of Bitcoin as it evolves further. However, one thing is certain - What was once nothing more than an idea has now become a reality that is changing the way we think about money forever!
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