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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?

  • First, you have to choose a wallet. Whether it's a Bitcoin wallet for your smartphone or a wallet for your computer only, you have to create an account and register a wallet. It's some kind of a bank account, so after registration you will be able to receive payments as well as pay for anything you need and store bitcoins.
  • Then you have to get bitcoins, obviously. You can either buy bitcoins using exchanges, receive them as a payment if you sell something, you can try to mine them by yourself, or (and that's the best option) you can add funds to your Bitcoin wallet here. You will get bitcoins nearly instant.
  • Now you have some bitcoins and you want to be sure no one will steal them. Secure your wallet, make sure your password is complex enough and, if it's needed, enable two-factor authentication here.
  • You can spend bitcoins as you want, but make sure the merchant accepts this currency. Although a lot of online shops are ready to accept bitcoins, double check and talk to a seller one more time in order not to lose your time or money.
  • If you don't need to spend money but want to be paid with Bitcoin or just to make your business more open and friendly for the Internet, it would be useful for you to register account or log in if you already have one and to create a wallet here.

How can I cash BTC out?

Well, that's an easy task.

  • First, you have to log in and choose the most comfortable option. You can get your money using instant payout, bank, cash card, mobile money...
  • Select the specific options, like the name of the bank or your mobile operator.
  • How much do you want to cash out? Enter the amount (bank transfers have 0 fees).
  • Congratulations! You have withdrawn your money.

In conclusion, let's take another look at the pluses and minuses of Bitcoin.

Disadvantages:

  • People are unaware of Bitcoin.
  • Online shops' shortage of skilled staff able to work with Bitcoin.

Advantages:

  • It's free. You can send money and get it anywhere. No holidays, no borders, no limitations.
  • No extra-fees, no fine-print — only transparent and fair terms of trade.
  • You can make payments without your personal information. No identity thefts.
  • Your money is safe because of two-factor authentication and encryption.
  • Very low fees.
  • If you're a merchant, you would appreciate the anti-fraud protection system.

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.