If you’re like me, you probably tried to wait to find out more on the Bitcoin wave under the assumption that it would eventually fade away. Well, it hasn’t taken over mainstream currency the way some proponents expected it to, but it also doesn’t appear to be going anywhere. And as a result, those who didn’t get in on the ground floor, so to speak, may be feeling a little bit left behind. So in this article, I want to go back to the starting gate and cover some of the basics of Bitcoin and how Bitcoin Work for anyone who may be feeling confused by the cryptocurrency’s growing relevance in everyday life. You can also read about the trends that are impacting Bitcoin in 2019.
What Exactly Is Bitcoin ?
This is the most important question of all, and it’s one that a lot of people still can’t answer clearly even if they’re fairly tech-savvy and up-to-date on cultural news. The full definition of Bitcoin is actually pretty complex (so you’re off the hook if you don’t fully understand it just yet!), but the basic idea is that it’s a form of decentralized digital currency that exists only electronically. Therefore no one controls it and it’s not based on a tangible standard. It’s created not by a bank or government but by individuals and companies that “mine” it into existence through complex mathematical procedures online. You can trade, sell and invest in crypto with the help of a trading company like swyftx.com.
Also Read: Five Best Bitcoin Apps For 2018
How Do You Get Bitcoin ?
As mentioned, the way to get Bitcoin out of nowhere is to mine it online, but this is a very complicated process that not just anyone can get involved with. People will be doing it until 21 million Bitcoins have been mined (at which point none will ever be created again, per a cap that was put on the cryptocurrency at its inception). However, if you’re not mining, there are other ways to acquire Bitcoin, most of which simply amount to paying for it. You generally can’t do this through banks (banks typically want no part of Bitcoin) or even standard services like PayPal (which charge fees, whereas Bitcoin transactions are low- or no-fee). However, there are various peer-to-peer Bitcoin trading systems and crypto exchanges that exist for this purpose, and in some cases, you can even put cash into a Bitcoin ATM and get digital currency back.
How Do You Store Bitcoin ?
The term Bitcoin wallet has arisen to describe the various means of storage, though a more accurate way to describe them might be as accounts. The first thing to understand in any explanation of how to store Bitcoin is that you don’t actually possess Bitcoins in any tangible way. That’s to say you may have a wallet, but there aren’t Bitcoins stored in it. Rather, they’re stored on a public ledger. What you possess in your wallet is a set of private keys and an address that enable you to send the order for your Bitcoins in the ledger to be transferred to someone else’s account. Thus, you store your Bitcoins more by securing your access to them. This can be done through a variety of different kinds of wallets. Some are software programs that keep your information in an app or online; some are hardware options that give you real devices (think USB sticks) that house your private keys; and some are even paper options that hold your keys on small slips of material.
Where Can You Use Bitcoin ?
There’s no single overarching response to this question. Bitcoin can be used anywhere that it’s able to be processed, with the number of stores fitting that description constantly expanding. Some of the larger names accepting Bitcoin include giant companies like Overstock.com and Target, but many smaller store chains and independent shops are adopting Bitcoin processing as well. You can also spend Bitcoin in peer-to-peer transactions, or you can simply store it as an investment rather than as a useful everyday currency. There are plenty of options, and more with each passing day.
Also Read: Still Considering Investing in Cryptocurrency? Here’s What You Need to Know
To some extent, Bitcoin is one of those technological developments that you can only fully understand once you use it yourself. But hopefully, this guide on How Bitcoin Work has given you a better understanding of what it’s all about and how it’s becoming useful to so many people.
