Bitcoin (capitalized) is used to describe the entire concept or network as a whole, while capitalized means a virtual currency, a unit of account. The abbreviation used to specify the currency is BTC or BXT. Bitcoin is divided into 100,000,000 smaller units, satoshi. Bitcoins can be saved on your computer in the form of a wallet file or be stored in the wallet on an external site. In both cases, the user can send bitcoins to another person via the internet.
Who is bitcoin for and how to use it?
Virtually anyone can use bitcoin – it is a currency with open source code, thanks to which everyone has access to it and you can see how it works at any time. BTC uses a decentralized database that is distributed between peer-to-peer (P2P) network nodes to store transaction information. The system works as an organized whole, and each user can interact directly with others.
Bitcoin is a currency with which you can buy material goods electronically – in this sense, it works on a similar principle as the currencies we know, e.g. dollars, euros or yen. The new user does not have to understand the technical details – just install a Bitcoin wallet on your computer (or another device with Internet access). Then a Bitcoin address will be generated, which works on similar principles to an email address, except that it is used only once. After revealing your Bitcoin address to your friends, you can use it for payment.
Virtually every day the possibilities of using virtual currency in real transactions are increasing. Sellers who accept payments in Bitcoin are the easiest to find on virtual markets and websites associating companies and Bitcoin enthusiasts. Most often, bitcoin is the currency used in online gambling to purchase online services, you can also buy material goods from special bitcoin-catalogs.
The risk that bitcoin carries
According to many specialists, bitcoin price chart can be used for money laundering – all because of its basic advantage, i.e. users’ anonymity. Although the transaction history is fully public and available to everyone, it is not easy to determine who the specific Bitcoin address belongs to – unless of course, the user himself tells us.