Pay with Bitcoin
What is Bitcoin?
This word appeared by compounding two words — bit (which is a unit of information) and coin (everyone knows what is it). It's actually a digital currency (cryptocurrency), and its main difference from real-life currencies is that bitcoins aren't printed. They are produced by computers that solve mathematical problems. These mathematical problems are not like those you did at school — computers make "blocks" by solving mathematical problems — this process is called "mining". These blocks are the results of the work of millions of computers around the world, and this work is actually the thing that gives bitcoins their worth and value.
Does it have any real value?
Everyone knows that money has to have value, and in the past the value of money was based on the value of metals, such as silver and gold. In the 20th century money's value was determined by the gold standard. Now, in the 21st century, new, digital currencies such as Bitcoin (even if there are no Bitcoin coins and bank notes), have value because they have all needed characteristics of money. Even if these characteristics are not based on gold or silver, like they were in the past, Bitcoin is still valuable — but the characteristics of Bitcoin as a currency (such as exchangeability, rarity, divisibility and awareness) are based on mathematics, not on precious metals or authorities. So, dollar has value because the US government accept this currency only and because the countries of the world borrow dollars from the USA. Gold has its value because it's shiny, you can make jewelry from it, it's a noble metal and, well, it has always been so. Bitcoin has its value because it's backed by mathematics.
How is its price determined?
The main terms of economics are demand and supply. It's simple: if demand for bitcoin falls, its price falls, and if this demand increases, the price increases consequently. This law means that, in simple terms, the less bitcoins are available, the more bitcoins cost. But it makes no sense to worry about the last Bitcoin — according to studies it will be mined in 2140.
How was this currency created?
In 1998 the word "cryptocurrency" (at least the conception of it) appeared. This was an innovative idea — an anonymous virtual currency without centralized control? It seemed to be impossible to turn this idea into reality.
But 10 years later, in 2008, the concept of decentralized currency called Bitcoin was published. The author of this idea was Satoshi Nakamoto. This isn't the real name of a man or a group of people who invented Bitcoin, but the real name is so far unknown. There are a lot of speculations about the identity of Satoshi, but no one knows his (or her, or their) real name for sure.
More interesting things happened in 2009. That year the first software that mined the very first Bitcoins was released by Satoshi Nakamoto and in 2010 he left the Bitcoin project.
As for the price of Bitcoin —in 2011 the price it raised to one dollar, so these currencies achieved parity. Before that, in 2010, a guy from Florida bought two pizzas for 10,000 bitcoins. Today it's about six million five hundred thousand in dollars.
Do people really use Bitcoins?
Yes, they do. The list of services and goods that may be purchased with Bitcoin is expanding, and the value of all bitcoins in the world is $10 billion. Online shops, payment, media and social services accept Bitcoin, and that's why we can see that it is doubtless widely used.
Is it safe to use this cryptocurrency?
It's safe, but if your bitcoins are stolen — it's almost impossible to do something and to recover them. Due to the fact it's a decentralized currency, there is no central office you can call and complain.
But if you use two-factor authentication (no actions allowed until you get and confirm a code from the SMS), one-time passwords and a complex password — you have literally nothing to fear. Bitcoin is safe.
How to use Bitcoin?
How can I cash BTC out?
Well, that's an easy task.
In conclusion, let's take another look at the pluses and minuses of Bitcoin.
But all these problems listed before are temporarily. 7 years ago only 1 man knew about Bitcoin. Now there are dozens of millions of people who use this currency.
The future is hear.