The Nature of ฿itcoin

DATE

14th January 2016

CATEGORIES

bitcoin, digital wallet, Fintech

What is Bitcoin you ask?

BITCOIN is a virtual currency.

 

Its an open source software (software developed in a collaborative public manner without patents or copyrights) that is exchanged amongst individuals without any formal intermediation.

 

Bitcoins hit their high-mark three years ago when it stormed the web and many were looking forward to using them. Bitcoin fans were looking around to see how they could get the most out of their new found wealth. Due to the anonymity of Bitcoin, the first commerce they were used in were in (non prescription) drugs, unfortunately. By using Bitcoins, there was no record of the transactions, so there was no way to trace them back to the users. They can be freely used, changed and shared – in modified or unmodified forms – by anyone. As more people started seeing how they were being used online, they wanted to bring them out of darkness, and make them more useful.

How do you get a Bitcoin?

First you need to set up a digital “wallet”, which is basically the Bitcoin equivalent of a bank account. Here´s a good starting link https://bitcoin.org/en/choose-your-wallet .  This wallet (I call it a ฿allet) allows you to receive Bitcoins, store them, and then send them to others for various products and services.

 

Mind you there are two kinds to select however, a software-wallet which is installed on your computer or mobile device, and a web-wallet which is hosted by a 3rd party. (The later is easier to use, but you should make sure the provider offer high levels of security to protect your coins.)

Coinbase, Electrum, and Blockchain.info are the top web-wallets around. I personally use https://play.google.com/store/apps/details?id=de.schildbach.wallet which is quite good.  Airbitz (iPhone, Android), Breadwallet (iPhone) and Mycelium (Android) are excellent as well.

How do you use a Bitcoin?

The easiest way to get some bitcoins is to sign up with the aforementioned and link your bank account. They charge a small 1% fee and you receive your bitcoins as soon as the transfer from your bank account clears.

 

Bitcoin´s value in 2013 hit a high of $1,216. Today, it’s right around $431. This may seem like the currency is phasing out, however, the opposite is true because what affects the increase in Bitcoin´s value, is the number of merchants who are willing to use it. Today, companies such as Dell, Expedia, and  Overstock.com have begun accepting it. Most importantly in my opinion,  PayPal Merchants are now able to accept it as well. As more see the value in it, its use and value will increase.

Why Will it Grow in Use?

The price of Bitcoin isn’t what matters most – it’s whether people are beginning to use it.  According to Coinbase.com, the largest Bitcoin exchange portal, the currency’s activity is up 20%. This may not sound like much, but it’s actually a significant increase from previous years, and this upward trend is continuing.

But why should Merchants accept them? Companies accepting Bitcoins take them at market value. As the market value increases, those Bitcoins will be worth more. Companies who have them will end up increasing their worth over time.

 

Web-wallet providers have begun issuing debit-cards for their customers. These come without fees for merchants, unlike those of credit-card transactions. When businesses realize this, they will be much more likely to want to get involved with it.

 

Ease and convenience is certainly what Bitcoin users want, which will propel the Bitcoins market forward. As companies find ways to make them convenient, merchants realize their value, and users start using them, Bitcoin will rocket forward to becoming the most valuable form of currency around the planet, and its all going to start happening in 2016.

 

 

Hey, if you care to read how a person lived on Bitcoins for a week in San Francisco, click below. (it’s not easy, but apparently it can be done)
http://www.forbes.com/sites/kashmirhill/2013/05/09/25-things-i-learned-about-bitcoin-from-living-on-it-for-a-week

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