How Bitcoin works
Bitcoins are a decentralized form of crypto currency. That is, they are not regulated by a financial institution or the government. As such, unlike a traditional bank account, you don’t need a long list, paperwork like identification in order to establish what is known as a bitcoin wallet. The bitcoin wallet is what you will use to access your bitcoins and send bitcoins to other people.
How to set up an account
You can purchase a bitcoin wallet from a bitcoin broker like Coinbase. When you open a wallet through a certified broker, you are given a bitcoin address that is a series of numbers and letters, similar to an account number for a bank account, and a private key that is also a series of numbers. and letters. that serve as a password.
How does Bitcoin work as an anonymous payment processor?
You can do 3 things with bitcoins, you can make a purchase, send money anonymously to someone or use it as an investment. More and more merchants accept bitcoins as a form of payment. By using bitcoins instead of cash, you are essentially making that purchase anonymously. The same goes for sending money, based on the fact that you don’t have to send a mountain of payment to be able to set a bitcoin anonymously, you can basically send money to someone else anonymously.
How does Bitcoin work as an investment?
The price of a bitcoin varies from time to time. Just to put things in perspective, in early 2013, the average price of a bitcoin was about $ 400 per bitcoin, but in late 2013, the price of bitcoin rose to more than $ 1,000. This meant that if you had 2 $ 800 worth bitcoins in early 2013 and stored them as an investment by the end of 2013, those two bitcoins would have been worth more than $ 2000 instead of $ 800. Many people store bitcoins due to the fact that their value fluctuates.
Bitcoin casino and poker sites
Due to the anonymity of bitcoin, the gaming industry has adopted bitcoin as a payment method. Both bitcoin casinos and bitcoin poker sites are coming to life, offering their players to deposit, play bitcoin at the tables, and withdraw directly to their bitcoin wallet. This means that there are no taxes or possibilities for government control. Just like a normal Nevada casino where you don’t need to register anywhere and all your transactions are anonymous.
How do you send Bitcoin?
In order for you to pay for goods and services or send bitcoins to a person, 3 things are needed. Your bitcoin address, your private key, and the person’s bitcoin address. From that point, through your bitcoin wallet, you will put 3 pieces of information, which are: entry, balance and exit. The input refers to your address, the balance refers to the amount of bitcoins you are going to send, and the output is the recipient’s address.