The 21st century has brought about a number of changes to our daily lives. Providing alternatives to much of what was considered unchangeable, things like the Internet have allowed us incredible freedom and opportunity. One of the most interesting developments so far is the creation of a strictly online currency known as Bitcoin.

You’ve no doubt heard of Bitcoin before. It was in the news multiple times over the last 7 years as it gradually rose and fell in popularity. While it may not be in the news much anymore, it is none-the-less an online currency that is still used for countless transactions every day. So, what is Bitcoin and why might you want to use it? Let’s take a moment to answer this question, as well as get into the nitty gritty regarding how you can use it, send and receive with it, and whether or not it is safe.

What is Bitcoin?

According to the U.S. Treasury, Bitcoin can most easily be described as a decentralized virtual currency. What this means is that it can act as a payment system for goods and services as well as a cryptocurrency that protects the identity of the people using it. The system involves peer-to-peer transactions where individuals exchange the currency. Nodes in the system keep track of information and exchange, adding the information to the Bitcoin itself. Also known as the block chain, the system ensures integrity within the currency, making it very challenging to counterfeit the currency. Bitcoin works without a bank. Bitcoin is an open scource and open for public. Everyone can use Bitcoin.

Who creates Bitcoins? Interestingly enough, Bitcoins are given as a reward to individuals who use their hardware to and computing power to verify and record Bitcoin transactions. Known as mining, some individuals support themselves by creating their own Bitcoins, maintaining the overall system in the process. This way, the integrity of Bitcoins is constantly being reviewed and validated.

Why would I want to use Bitcoin?

In terms of total market value, Bitcoin is the largest decentralized virtual currency in existence. As of 2015, more than 100,000 businesses accept Bitcoin as payment. Where as credit card companies can charge between 2-3% per transaction, Bitcoins are typically less than 2%. What this means is that companies are far more likely to want to be paid in Bitcoins if they have the option. Bitcoin provides you with an anonymous and secure way of paying for things without having to go through credit card companies or banks. For many, this is reason enough.

How do I use Bitcoin?

Despite the complexity of the technology itself, using Bitcoin is remarkably simple. The first and most important thing you can do is creating a Bitcoin Wallet. You can do this at Bitcoin.org The Bitcoin Wallet is what you will use to pay for goods and services. It is also where you will store all of your Bitcoins as well. The next thing you need to do is locate your Bitcoin address. This is the signature individuals will use to recognize your account and send information to it. You will also use the address when paying out. Finally, the last thing to do is to go to one of the markets and purchase Bitcoins for use.

How do I send and receive Bitcoin?

First, find a company that accepts Bitcoin. Next, place an order with the company and go to pay. Chances are they will have an option for Bitcoin, which will take care of the rest. If such an option does not exist, then you can use your Bitcoin address to get money as well as pay it out. A confirmation is required by you for these transactions.

1 - Choose your wallet:

You use one of these wallets on your cell phone or computer to make your payments. Takes only 1 minute to choose. The most popular Bitcoin wallet is Blockchain and Coinbase.

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2 - Buy Bitcoins:

You can exchange your existing money over a certain exchange rate or buy it directly from a Bitcoin seller or from your wallet. Bitcoin value changes day by day.

Is Bitcoin Safe?

Bitcoin safety comes down to how protected your Bitcoin wallet is. The currency itself is a cryptocurrency, meaning that it is very hard to break. The Bitcoin Wallet however requires a passcode. If that passcode falls into the wrong hands, then your information may be at risk. Bitcoin payments can not be recovered.

Bitcoins is nothing but a peer-to-peer technology to operate with no central authority or banks; it is that kind of technology that is managed with utmost efficiency and care; in spite of being an open-source technology nobody can control it; rather everybody can take part in it. Needless to say that this is the most unique payment system that has a number of exciting advantages that you can get when you are about to buy steroids with Bitcoins.