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Uses of Bitcoin

A form of digital currency that is made and used electronically is referred to as bitcoin. Unlike dollars or other forms of currency, bitcoin cannot be printed and neither can it be controlled by anybody. This form of currency is mainly used for purchasing items electronically. As compared to conventional money, bitcoin is usually decentralized which is what sets it apart from other currency. There is not a single institution or large bank that claims control over the bitcoin network. Conventional currency forms are usually based on silver or gold while bitcoin is based on mathematics. There is usually a software that contains a math formula which is used during the creation of bitcoins. Anyone can check the formula since it is made available to everyone and the software is an open source.

Unlike other forms of currency, bitcoin is very easy to set up. While using conventional currency, one is taken in hoops when they are trying to open a bank account. However when it comes to bitcoin, one simply sets up their bitcoin address within a short period of time without having any questions asked or fees charged. One can open up multiple bitcoin addresses while using bitcoin and their identity is kept confidential. Personal information such as your name or address isn’t revealed once you open up multiple addresses. Any transaction that takes place within the bitcoin network however is kept track of. Once you use the bitcoins publicly, one can tell the number of bitcoins stored within an address.

Bitcoin is a very cheap way of transacting as one can perform any transaction without being charged a dime. Another benefit is that one can send money to any location and it arrives within a short period of time making this currency very reliable. As soon as the payment is processed, the money is able to get to the recipient. Another feature of bitcoin is that it is non-refundable. One cannot get the bitcoins back after sending them unless the recipient chooses to send them back.

Bitcoin is becoming more and more popular as most businesses are using it for various activities and transactions. Distance or time is irrelevant when it comes to using bitcoin as it doesn’t affect the transfer rate. Each and every transaction conducted through bitcoin is very safe as it is encrypted. There is proper documentation of all transactions involving bitcoin as they all take place online.

Bitcoins are usually created as a form of reward for those using it as once users offer computing power to record and verify bitcoin transactions into the block chain, they are offered bitcoins. This process is referred to as mining and those who are successful at it are rewarded with new bitcoins and transaction fees. One can use bitcoins to exchange them for other forms of currencies, services or products as well.

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