how bitcoin works

Bitcoins are a decentralized form of cryptocurrency. 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 of documents, such as an ID, to set up what’s 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 provided with a bitcoin address which is a series of numbers and letters, similar to an account number for a bank account, and a private key which is also a series of numbers. and letters. that serve as your password.

How does Bitcoin work as an anonymous payment processor?

You can do 3 things with bitcoins, you can make a purchase, anonymously send money 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 payments to set up a bitcoin anonymously, you can essentially send money to someone else anonymously.

How does Bitcoin work as an investment?

The price of a bitcoin fluctuates 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 by the end of 2013, the price of bitcoin rose to over $1000. This meant that if you had 2 $800 worth of bitcoins in early 2013 and stored them as an investment in late 2013, those two bitcoins would have been worth more than $2,000 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 embraced bitcoin as a payment method. Both bitcoin casinos and bitcoin poker sites are coming to life, offering their players to make deposits, play bitcoin at the tables and withdraw directly to their bitcoin wallet. This means that there are no taxes or possibilities of government control. Just like a regular Nevada casino, you don’t need to register anywhere and all your transactions are anonymous.

How is Bitcoin sent?

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 individual’s bitcoin address. From there, through your bitcoin wallet, you will put 3 data, which are: input, balance and output. The input refers to your address, the balance refers to the number of bitcoins you are sending, and the output is the recipient’s address.