What is Bitcoin? I am sure you have come across it if you have dabbled in the world of internet commerce. If not, then I suggest that you start looking into it because it’s beginning to impact all facets of our society and our economy. You may be asking yourself what this thing that everyone is talking about, well before you get into it, let me give you some information about it so that you are prepared for it when you first encounter it is. The first thing you should know is what is “bitcoins”? So if you want to learn How To Invest In Stocks through bitcoins, continue to read this article.
Bitcoins is a peer-to Peer digital cash that is transmitted across the internet without the use of traditional intermediaries, which is called “banks.” This digital cash system is called the bitcoin network, and it works pretty much the same way as the PayPal system. So you send someone money, and they can spend it anywhere in the world! You will never see them giving you a credit card number. There is no paperwork involved with this. This is what is bitcoins.
Now that you know what bitcoins are, let’s go back to the original question. Why is it better than a regular currency? This is because it is not backed by any physical asset that could be stolen, making it much safer and much more decentralized.
If you were to ask a person on the street what is bitcoins, chances are they would not be able to give you an easy explanation. Let’s face it, most people do not fully understand the intricacies of how the monetary system works. They just know that it is better than the conventional money. To most people, the government issued currencies are like banks, only with higher interest rates and fewer protections from fraud and theft. They are far too centralized and controlled by the powers that be in government.
With bitcoins, you are able to transact and make payments without having to rely on any government-issued currency. You are left to use your own brain power and your private computer to transact. Sounds crazy right? It is better than dealing with a bank or using any other financial institution because there is no paper trail to follow. That is why some people call it digital cash and not money. But it is much better than any of those.
Bitcoins are truly decentralized because it is not backed or printed by any government. Governments have tried to create a form of money, called fiat currency, but it has never caught on. The problem is that governments and banks don’t like competition, so they have made the law difficult to follow and keep the system from being decentralized and free.
When you start to transact and spend with bitcoins, you have all the control. This means that you can set up a transaction with a specific price in mind, and you can specify the payment time and date. Since this transaction is between two independent parties, no third party will interfere. The only thing you need to be wary about with what is bitcoins is how hackers get into your system and change the existing balance. But since bitcoins are truly decentralized, your private information is protected from prying eyes and you can transact any time at the market price without any fear of losing it.
To understand what is bitcoins, you need to know what causes them to increase in value. You see, they increase in value when the demand for them exceeds the supply. This is how you get an economic bubble where the market price goes through the roof. This happens because there isn’t any physical paper money, so there is no demand for it. In short, it is digital money that is floating in the marketplace. If you want to know what is bitcoins, it is the only true and legitimate form of currency that you will ever find.