An initial digital currency that is most successful is Bitcoin. It has been used in so many countries. We can get information about it in the daily news. There are so many reviews about this digital currency. This international currency has so many innovative features. Most of the people do not have any idea of how a person can receive Bitcoin from the other person by using a technological platform. Blockchain is the name of this technology. A peer-to-peer system is used to send this digital currency from one person to the other in which an intermediary or a bank is used. The way mail is sent via email, the same way is used to transfer money using this innovative technology. As a mail is sent by email without the need of a post office, in the same way if we have to transfer money to a person via blockchain there is no need for a third party.
If we are transferring the money using a peer-to-peer system, then is it possible to transfer money in some other areas also? We should use this system for purchasing a house or a car. If you are interested in selling stocks, then is it good to use this Blockchain technology? By using this technology, so many problems like short sales and high frequency trading in the stock market can be resolved.
Origin of Bitcoin
“Satoshi Nakamoto” is responsible for its origin. He is a programmer. Its actual design was produced by him in 2008. Nobody knows about the original programmer. This technology was given to the people for use in 2009. Some volunteer developers belonging to a particular community are responsible for its maintenance and programming. After that the Bitcoin community has not seen Satoshi Nakamoto.
Working of Bitcoin
There is an app which can be used for making the transaction of Bitcoin possible. We can use it on a mobile phone or a computer. Several apps are there for making payment of Bitcoin. A transaction of Bitcoin will be executed by a person if he buys a particular thing from you and his virtual Bitcoin wallet will be used for transfering you the Bitcoins. Blockchain is responsible for maintaining this transaction in the background. It is basically a public ledger and is maintained by a computer’s network. Every transaction’s record is kept in the Blockchain in a digital form. In this way each Bitcoin’s history is tracked by the Blockchain.
If you want to know the working of Bitcoin in detail then you can go to a website known as Bitcoin.org.
Advantages and disadvantages of Bitcoin
This payment method has several advantages:
It provides privacy and security – There is no need to associate any personal information with Bitcoin because encryption of information is done for every transaction of Bitcoin.
Transaction fees are low – A person who buys from the merchant pays the fee. If you want to take government money by giving them Bitcoins then there is provision of merchant services. The fees charged for providing you these services is very low.
Disadvantages of Bitcoin:
Community is small – The number of people who want to use Bitcoin is increasing. But this number is less if we compare it with the remaining people. It is not possible that everything can be purchased by using Bitcoins. Also, whenever you make a purchase by using these then you will require government money in exchange for these.
Technology is not mature – Although the main idea behind the Bitcoin technology is perfect but a further development in the software is required to enable it.
Uncertainty in tax and legal issues – Dealing with cryptocurrencies like Bitcoin is not taken seriously by the government because the rate at which Bitcoin technology is advancing is very fast and the Government is not able to give a quick response to this advancement. It is not considered as money but as an asset by the Internal Revenue Service of the United States. So, if you want to get items in its exchange then it will be included in the barter system. It is not sure to apply tax on this type of currency.
Chances of volatility – There is a wide variation between government currency and Bitcoin in terms of exchange rate and it is not sure that its value will remain the same as the Government money tomorrow.
How to get start with Bitcoin
Among some of the Bitcoin wallet services you have to select a service and sign up with it. Accepting this cryptocurrency by your website can be made possible by doing some settings in it and it is very easy.
For promoting products and services you can use a component of marketing known as digital marketing. It can use mobile phones, computers and the internet for doing this.