ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Bitcoins and all you need to Know about them

Updated on June 1, 2016

Bitcoin has injected itself among many conversations about technology, finance and the internet and has come a long way from mysterious currency to broadly known medium of exchange.

If you want to explore about Bitcoin, here are answers to few questions that might just pop in your mind.

What is Bitcoin?

Bitcoin is a type of digital currency, which is online-only alternative form of currency. There is no middleman – that means no banks! The basic idea is that you can make payments without third-party like the government or bank. With no central authority, two people can transact freely anywhere in the world, with no fees or bank account. The idea behind Bitcoin is to take the power out of hands of the government and central bankers, who control the flow.

Do people even use Bitcoin?

Yes. Although Bitcoin is a new phenomenon, it is growing fast. Email lets us send mails anywhere for free; Skype lets us call anywhere for free, now there’s Bitcoin. It lets you send money anywhere online. Growing number of businesses are using Bitcoin, including brick and mortar businesses, online services such as WordPress and Reddit.

So far the skeptics are wrong in that Bitcoins can’t work:

The recent price trend clearly explains it all. Bitcoins will be eventually adopted in the same way the computers were adopted.

Who created Bitcoin?

No one knows for sure. Not conclusively. The idea was developed by Satoshi Nakamoto, who resides in complete anonymity. While the name sounds Japanese, the creator never provided any kind of personal detail.

He collaborated with people through online forums but never met anyone face-to-face. In 2010, he gradually reduced his involvement in the development of this digital currency.

However, many assume that the name is just the name of a group of people working on it together.

What is it about mining?

You must have speculated where Bitcoin comes from and gets into the transmission. The answer to this is that it gets mined into existence. No one is provided Bitcoin per se, you got to earn them and a little luck too.

There have been a lot of currencies that have been emerged in the years but this one has a lot new technology being used.

Consider bitcoin as a big ledger shared by all users: When you make transactions through bitcoin, it is recorded on the ledger. Programs then compete to confirm the transaction by cracking complex equations. The winner is rewarded with more bitcoins. Try not to get too wrapped up in that.

The history of transaction can also be tracked back to the point from where bitcoins were produced. People have already started using Bitcoins and but unless there is something that keeps a record of things, no-one would be able to get hold of things.

Why use Bitcoin?

Bitcoins are replacing the means of transferring value from one place to another. Wire transfer, cheques, and bank transfers usually suffer from delays and human error since there are different people involved in the process from both ends of transaction.

1. It is our generation

What we mean by this is that Bitcoin is made for internet generation. We are slowly moving past the days of carrying cash or credit card. The concept of Bitcoin goes further than the convenience of credit card users with a payment option that provides virtually immediate transaction time.

2. Bitcoins are cheap

The fees of Bitcoin as a method of payment is cheaper when compared to bank transfer or online transfer systems like PayPal. Why to pay so much to just move your hard earned money. Bitcoin transaction fees are negligible, or even free in some cases.

3. Its fast

Wire transfer, cheques and bank transfers usually suffer from delays and human err as different people are involved in the process. Bitcoin transactions are much faster and if the user goes for ‘zero confirmations’, it can be processed instantly.

Comments

    0 of 8192 characters used
    Post Comment

    • nabinkhadka profile image

      Nabin Khadka 

      3 years ago from Kathmandu, Nepal

      No money to PayPal. Saves a lot. Thanks for information. :-)

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)