Virtual currency the Bitcoins’ way

If someone told you that something you cannot see in a physical form and existing as an online value but still called as coin and can be for transactions, would you believe it? Sounds a little fictional but this picture does exist in real life and is soon going to get bigger and better. Bitcoins is one such system which is going to make such virtual currency a much more accepted way all over the world.

Who regulates it?

Bitcoins is a virtual currency system which has not been a universal form of trading everywhere yet. That is why it is called as crypto-currency. It is not controlled by a particular bank or institution and hence is a decentralized way of dealing. It is unregulated and hence there is no limit on its usage. These coins are not physical and the value of each bitcoin is the bitcoin itself.

But there are people called ‘miners’ which is a huge network of people who keep a tab on bitcoins and each transaction being made by using it. They maintain a ledger in which the transactions of bitcoins are audited.

Then what is a bitcoin made up of?

It is similar to a text message on your mobile phone. It is small in size, a file, called as a blockchain. The blockchain for each bitcoin has two parts, an identification address which is around 34 characters and a history of the owner and user of that particular bitcoin. This history is the ledger which is audited by the miners.

There is also a third and more complex part of a bitcoin called as the private key header log. Every time a transaction is made from that particular bitcoin, a digital signature is captured to confirm the transaction. This digital signature is unique for each user and his account called as his bitcoin ‘wallet’. This ensures that the transaction has a digital confirmation but nowhere is the name of the user revealed. So it is open as well as anonymous at the same time.

What can one do with bitcoins?

Bitcoins can be used in all those online shopping websites which allow transactions using bitcoins-

• There are special places online like bitcoin stores where you can buy electronics and most of the other things too buy using bitcoins.
• You can get gift cards by giving the specified bitcoins for it. These cards are available at certain online stores and are spendable on those as well as other leading online stores too.
•  There are certain foundations which work for noble causes and allow exclusive online charity payments through bitcoins.

How does one get these?

The easiest and most known way is to buy bitcoins in exchange for the local currency. You need to have a bitcoin wallet and then log in to get the exchange done. You can earn bitcoins by allowing those transactions if you are a seller.

This purchase has to be done by taking help of local bitcoins, which is the directory for getting bitcoins as per your local rates. There are sellers from where you can purchase these at the prices fixed. The entire process is easy, transparent and very safe. It is surely the next in thing.

Bitcoins for one and all, easy and fast

Things have already started moving from the real world to the virtual one. From the era of credit and debit cards, there came net banking and now monetary transactions have gone one step further with the introduction of bitcoins.

What does Bitcoins mean?

This was an online monetary system introduced in the year 2009. The main aim of this kind of a system is to ensure easy and hassle free monetary transactions amongst individuals, merchants, businessmen and all those who have to make monetary payments on a regular basis.

The capital ‘B’ and small ‘b’ in Bitcoins and bitcoins are not the same. The only difference is that the former is the entire system which includes the latter as a small unit of transaction. So like you would say “I bought this for so and so many dollars”, you can then say “I paid so many bitcoins”.

Where to start from?

One essential term you need to know while getting started with bitcoins is ‘wallet’. This is commonly used in all the transaction, and a bitcoin wallet is just like any other wallet might have, but just virtual. This can be compared to having some kind of app on your phone. This bitcoin wallet can be downloaded with the help of a software wallet on your phone; computer or you can even use it online. Once you log in and get your own wallet, your next step is to get bitcoins.

How does one get bitcoins?

Bitcoins are priced at a certain price in correspondence to regular currency of each country. It is like investing in forex, that you buy them at a certain price. To get more coins, you need to carry out transactions. You might think that this part is slightly tough, but if you are aware of these three basic ways, it is very easy to get bitcoins-

• If you are a seller, allow bitcoins as a mode of payment.
• You can do selling and purchasing of bitcoins through Bitcoin exchanges. These exchanges are online markets for bitcoins dealings.You can also exchange the bitcoins for getting other currencies of various countries.
• To get started, start with the exchange. Once you register, provide the required information like your identification, personal details, bank details, you can then convert your country’s currency into bitcoins.

Is buying bitcoins safe?

Bitcoins is not yet a legal system everywhere and is known as cryptocurrency. But many merchants have this mode of payment as an acceptable form. The reason why people prefer using bitcoins is because it is an extremely easy process. You also do not have to pay extra money for conducting these transactions as a seller.

The entire bitcoins transactions are immediately entered into an online ledger called as blockchains. That means that each bitcoin is being registered and kept a tab on. The process is absolutely transparent and there is absolutely no chance of forgery or fake transactions.

All these facts reveal that local bitcoins are going to be soon the favourite of all those who deal in heavy amounts and do not wish to have hard cash or card transactions. It is a great revolution in the world of currency. 

Hassle free and transparent : Bitcoins

What is bitcoin?

Bitcoins can be described as a sort of virtual currency system. It was introduced as recently as in 2009. Is a sort of software which facilitates online payments and can be used further for other transactions or exchange. This doesn’t mean that you can do online shopping with bitcoins, but all kinds of electronic transfers and transactions can be done by bitcoins. It is not considered as a legal system of currency and is also addressed as cryptocurrency. But Bitcoin is the largest cryptocurrency which is also decentralized.

The difference between Bitcoins with capital ‘B’ and bitcoins with a small ‘b’ is that the former refers to the entire system, and the latter is the actual currency.

How does Bitcoins work?

Once you have bitcoins in your possession you can use them to give to your friends, some merchants etc. the purchases made with bitcoins, the accounts of who possesses how many bitocins is all stored digitally. It is like an audit in itself, where there is a record of each and every bitcoin transaction. This system of online storing is called as ‘blockchain’. There are people who keep checking the blockchain, we can call them the auditors for bitcoin transactions. Their main job is to facilitate the bitcoin transactions safely and confirm them. These people are technically called as ‘miners’ and the merchants who hire them reward them for the services in terms of minted bitcoins.

Many people tend to buy bitcoins similarly to the way one would invest in forex. They buy it at a lesser price and sell them when then prices are higher. It is an easy way to make money. Bitcoin is being slowly accepted as a new form of making other payments too. Certain big companies have already approved this kind of transaction. Currently there are worth $1.5 billion worth of bitcoins in circulation all over the world.

Pricing of bitcoins:

Their prices are decided in relation to other currencies, like usually currency rates are decided. They keep fluctuating. The price is not fixed as such, so there has to take place a bargain between the buyer and seller in some sense. This is done against some set standard rates. You

Why choose Bitcoins?

You might be thinking that if real currency can do the same work as bitcoins does, then why use it? the answer to this question is that with bitocins, you can do any amount of transaction. A bigger transaction normally takes quite a while when you transfer the money, and there is always a problem of the cash being fake in case you gave some hard cash. But with bitcoins, the transactions take place within a matter of minutes and you have to stop worrying about all the other matters. The entire deal is totally hassle-free.

The second best thing is that for sellers, accepting through internet banking or credit cards involves paying of certain fees. But if the transaction is done with bitcoins, the fees are waived off. So from a seller’s perspective, it is far easier for him to accept bitcoins.

This is slowly gaining a lot of popularity with both the buyers and sellers, thanks to the transparent and fair system. Local Bitcoins may soon become an acceptable payment method everywhere.