Crypto currency that has taken the world by storm, I’m sure majority of us have heard of it. That is because of the gigantic rise in its value. But there is more to Bitcoin than just a crypto currency that is on the price rise. Read below for all the basic information you need to know about Bitcoin.
Satoshi Nakamoto (a person or a group) made this decentralized cash system in 2009. Bitcoin is an online currency with no tangible bills or coins, and no authority that has control over it, be it government or bank. As per a normal cash transaction, we use our names, IDs, etc. However, when dealing in Bitcoins, transactions are done through encryption keys. Bitcoins are supposed to be “mined” by powerful computers through internet with complexed mathematical equations and many miners working. Just like many engineers working on creating on complex device.
The Bitcoin prices are simply determined by its demand and supply, or to put it simply, the prices are determined by how much the people are willing to pay for it. Works very much like company’s stocks! If you wish to purchase Bitcoins,digital currency exchanges like Coinmama, CEX, Kraken and Coinbase, the largest and most established of them, can help you buy, sell and store Bitcoins. You can use your Paypal account or your bank account to make a deposit into a virtual wallet. Once your account is funded, which usually takes a few days, you can then exchange traditional currency for Bitcoin. You can later use that currency to buy things from over 100,000 sellers, you can keep them just like stocks to see if prices rise or fall later, or you could just sell them.
Are Bitcoins legal? Yes! As long as you don’t do illegal activities with them just like any normal currency.