What is Bitcoin (BTC)?
Bitcoin (BTC) is the world’s first and most popular cryptocurrency. It has the highest market capitalization of any digital currency by far and the widest rate of merchant acceptance among all cryptocurrencies.
Brief History of Bitcoin
The bitcoin network was launched in January 2009 by the anonymous developer (or group of developers) Satoshi Nakamoto, who mined the first bitcoin block. As the network had no participants for several months, he mined all of the initial Bitcoin supply for several months. The total estimated ownership under his control is estimated to be close to 1 million bitcoins (this makes him one of the world’s wealthiest individuals). Upon Satoshi’s somewhat mysterious departure, the Bitcoin Foundation took control over everything Bitcoin-related.
In 2010, a major verification bug was fixed to make bitcoin transactions more secure, and the Bitcoin Network has operated more-or-less flawlessly since then.
“At its core, bitcoin is a smart currency, designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions… all good things.”
Peter Diamandis, Founder of X Prize Foundation
How Bitcoin Works
Bitcoin works through a cryptographically-secured, decentralized ledger system known as the blockchain. It has no central repository or single administrator. In other words, it’s an open-source, peer-to-peer digital currency that is responsible for bringing about today’s blockchain revolution.
During a transaction, you need to issue a ‘send’ command containing the receiver’s wallet address and the amount of bitcoin to be sent. This information is received and approved via a ‘miner’ who essentially adds new entries to the blockchain ledger. The same amount of bitcoin is deducted from your wallet upon approval. The same process is followed to receive a payment in Bitcoin.
Why Should I Buy Bitcoin?
Bitcoin has several advantages over every-day, government-issued fiat currency, many of which come from it being the first of the cryptocurrencies. Here are the top reasons to switch your fiat currency into Bitcoin.
- User Anonymity: Unless someone makes their identity public by choice (or through a cryptocurrency exchange requirement), bitcoin transactions are not easily traceable.
- No Third-Party Involvement: It is impossible for banks, governments, or other regulatory bodies to freeze, stop, interrupt, or in any other way get involved in a bitcoin transaction. In fact, the Bitcoin Foundation itself cannot do that either because there is no intermediary between the sender and the receiver, unlike traditional currencies.
- No Sales Tax: Due to the same reason as above, Bitcoin purchases are not taxable. There is no way to identify the buyer, and thus, it is technically impossible to impose sales tax on a product or service.
- Low Transaction Fees: Bitcoin transfers are frequently very cheap because there is no third party involved. This is unlike other traditional fund transfers where exorbitant charges are levied by the banks or financial institutions, especially during international transfers.
- Un-hackable: Bitcoin’s public ledger keeping system, known as the blockchain, has yet to be hacked or compromised in any way. This is advantageous for users and merchants alike because they can trade freely without concern for charge-backs or false payments.
- Mobile Wallet: Users can make Bitcoin payments from anywhere, provided that the user has access to a computer or Smartphone and an internet connection. This also means that its users can bypass banks for monetary transactions. Moreover, no personal verification is necessarily required to make or receive Bitcoin payments.
For people who like to play casino games, bet on sports, or play poker, Bitcoin is becoming a popular choice for deposits & withdrawals. The reason is that it’s much easier to use Bitcoin for banking at gambling sites than credit cards or most other options. If you like to gamble online, you can view our best Bitcoin gambling sites.