I have a
bitcoin but I don’t spend it for three reasons:
1. It is
unacceptable in the Philippines. They don’t accept bitcoin.
2. They don’t
know about bitcoin.
3. My
friend who gave me bitcoin told me to “save” it like in a stock market. (But it's only a small amount of BTC.)
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| Courtesy: PerfectHue |
For the
past months, I am posting my bitcoin address on Facebook for others to know (perhaps donate), but I got queries and a lot of people don’t
know what is bitcoin and how it works.
What is Bitcoin?
Bitcoin
is a new currency that was created in 2009 by an unknown person using the alias
Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks!
There are no transaction fees and no need to give your real name. More
merchants are beginning to accept them: You can buy webhosting services, pizza
or even manicures.
Why
Bitcoins?
Bitcoins
can be used to buy merchandise anonymously. In addition, international payments
are easy and cheap because bitcoins are not tied to any country or subject to
regulation. Small businesses may like them because there are no credit card
fees. Some people just buy bitcoins as an investment, hoping that they’ll go up
in value.
Acquiring
Bitcoins
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| My Bitcoin Address (Kindly donate) |
Buy
on an Exchange- Several
marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins
using different currencies. Mt. Gox is the largest bitcoin exchange.
Transfers-
People
can send bitcoins to each other using mobile apps or their computers. It’s
similar to sending cash digitally.
Mining-
People
compete to “mine” bitcoins using computers to solve complex math puzzles. This
is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins
roughly every 10 minutes.
For Bitcoin free wallet, click here
For
free bitcoins, click here
Owning Bitcoins
Bitcoins
are stored in a “digital wallet,” which exists either in the cloud or on a
user’s computer. The wallet is a kind of virtual bank account that allows users
to send or receive bitcoins, pay for goods or save their money. Unlike bank
accounts, bitcoin wallets are not insured by the FDIC.
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| Courtesy: Forbes |
Anonymity
Though
each bitcoin transaction is recorded in a public log, names of buyers and
sellers are never revealed – only their wallet IDs. While that keeps bitcoin
users’ transactions private, it also lets them buy or sell anything without
easily tracing it back to them. That’s why it has become the currency of choice
for people online buying drugs or other illicit activities.
Future in
question
No
one knows what will become of bitcoin. It is mostly unregulated, but that could
change. Governments are concerned about taxation and their lack of control over
the currency.
Source:
CNN
