Before answering the question of why Bitcoin is needed, you need to know what it is. Bitcoin is an innovative electronic currency that is rapidly gaining popularity in society. Every day more and more people learn about this type of income as cryptocurrency mining. However, not everyone fully understands what bitcoins are and why they are needed. Let's try to understand this issue, and also try to understand where such a demand for digital currency came from.
Where can I pay with bitcoins?
If you are going to become a professional miner, you should understand that in Russia you will not be able to officially pay with cryptocurrency. For example, if you want to buy a car, real estate or just a cup of hot coffee, you will have to pay with the state currency - the ruble. No seller will be able to give you a check if you are going to paygoods with bitcoin, as this violates applicable law. However, you should not give up bitcoin mining ahead of time, since by the end of 2017 the situation may change for the better. The State Duma, with the direct participation of the Ministry of Finance and the Central Bank, is already working on the creation of a bill that will control existing types of cryptocurrencies and allow every citizen to make transactions using digital money.
From this a natural question arises, why do we need bitcoin if today nothing can be bought for it? You can buy, but only in the shadow market. All transactions are fairly fast, secure and anonymous. You can pay for almost any product on the Internet without any commission or go to one of the resources that offers the exchange of cryptocurrency for money familiar to most people, such as euros, dollars or rubles.
Where does cryptocurrency come from?
Bitcoin is the result of complex computer calculations. There are more and more bitcoins every day, which leads to the complication of computational processes and an increase in the time for their processing. At the same time, emissions are constantly decreasing, and in 2021 it will be equal to zero. The limited number and difficulty in mining cryptocurrency leads to the fact that the cost of bitcoin is constantly growing. This is the reason for the increased interest in this currency.
Why do we need bitcoins and who buys them?
As a rule, citizens of Eastern countries and Europeans are interested in purchasing electronic currency. For example, in Germany you canIt is perfectly legal to buy real estate by paying the seller with bitcoins. In Japan, you can have a good meal in a restaurant by paying the bill with cryptocurrency. This is very convenient, because you do not need to have a lot of time and lose huge interest for the transaction.
However, not everyone is in a hurry to spend their savings, which are stored in the form of digital currency, in this way. Most bitcoin holders who buy coins from miners, deep down hope that the rate will suddenly rise and it will be possible to profitably sell the cryptocurrency. This is one of the ways to make money with bitcoins. Thus, many of those who bought digital currency as soon as it began to gain popularity were able to make a fortune.
How to withdraw digital currency?
Before you start mining cryptocurrency, you need to know how to withdraw bitcoins. For this purpose, there are special wallets. In them, you can create an unlimited number of addresses to which a certain cryptocurrency is transferred, in our case, bitcoin.
In order to make a transaction, for example, buy bitcoins, give the seller of digital coins your wallet address. As soon as the receipt comes to the account, the system will notify you about it. Now we know why you need a bitcoin wallet. Let's figure out how to create it on the official website.
How to get a wallet?
Most novice miners spend a lot of time on various resources, looking for information on how tocreate a bitcoin wallet on your computer. There is nothing difficult in this. It is enough to go to the official website and download the software client. This method is considered the safest. A wallet installed on a computer allows you to both withdraw bitcoins and store them (accumulate).
It is also worth considering the fact that when installing a wallet from the official website, you need to have access to the Internet, as information about all completed transactions will be downloaded. The available hard disk space must be at least 100 GB.
How to get bitcoin?
There are several ways to become a happy owner of bitcoin:
- Mining.
- Hand-purchased
- Exchanges.
- Exchangers.
Most often, people who know why bitcoin is needed and how to turn it into a source of income use online exchangers. However, it is worth considering the fact that each exchanger offers its own conditions for making a transaction. It is necessary to carefully study all available information so as not to run into sky-high commission, which resourceful entrepreneurs disguise behind an attractive rate. As a rule, many exchangers offer up to $5,000 for bitcoin, although the real exchange rate of bitcoin to the ruble is 1:228000.
You can independently mine digital currency using the power of your computer. This method is called mining. As a rule, in order to increase the speed of mining, so-called farms are made, which are equipped with several powerfulvideo cards that allow more calculations per second. According to unofficial statistics, a productive farm can pay for itself within a year, and maybe even earlier, because the bitcoin rate against the ruble is constantly growing.
The safest and easiest way is to buy bitcoin on one of the major exchanges. But it will be problematic to make such a transaction with a bank card. To date, all banking institutions under the jurisdiction of the Russian Federation have an extremely negative attitude towards transactions of this kind. No risk management department wants to deal with the gray currency, so they prefer to block such financial transactions, which have increased dramatically in recent times, as people have become more aware and know why bitcoin is needed.
Reliable protection
The most common payment method in online stores is a credit card. However, it is worth considering the fact that when “credit cards” were created, no one even imagined that the Internet would appear, and even more so that financial transactions would be made in it. That is why credit cards cannot be called reliable. By purchasing any product and leaving personal data, you risk losing control of your funds in your bank account.
Despite the rather high cost of bitcoin, a transaction in this currency does not involve the disclosure of personal data. All that is required of you is to enter a public and private account. A public account can be known by many, including a person withwith which you make a deal. However, private - known only to you. Only when these two keys interact does it become possible to sign a check and make a transfer.
No inflation
The most common problem that all world currencies face is inflation. It occurs when the country's economy is in critical condition and it is necessary to inject new money to maintain it. As soon as the state starts its typewriter, inflation immediately sets in. Such measures lead to the fact that the monetary unit loses its value by exactly the same percentage as new banknotes were issued.
Bitcoin is reliably protected from such a negative phenomenon, since the number of coins that can be created is strictly limited. According to official data, the maximum number of bitcoins is 21 million coins, which will be mined as early as 2021.
Anonymous
Sometimes people tend to ensure that no one knows about this or that purchase. Using cryptocurrency for calculation, you can securely hide your personal data. Despite the fact that information about your wallet and how many bitcoins are in it is available to any user, no one will know the real name of the owner. The payment system does not oblige users to enter personal data during registration.
Decentralization
By keeping your money in the bank, you demonstrate your trust in this financial institution. However, as practice shows, you can only trust yourself, solike any bank, it has the full right to dispose of the funds available in storage at its own discretion. Often there are situations when you need a substantial amount of money, but you cannot get it either at an ATM or in an office. The cash disbursement procedure is deliberately delayed to gain time.
If you have bitcoins, then you are truly independent of the services of any kind of intermediaries. Your funds are always available, and you can spend them at your discretion at any time.
Access
Unlike other payment systems, a bitcoin wallet will never deny you access to personal funds. Take a look at Yandex, for example, which can at any moment consider that you are spending money incorrectly or limit your functionality, explaining that the security service doubts that the owner is in control of the wallet. In this case, you will have to identify yourself in all sorts of ways, which takes an enormous amount of time and effort.
Some more advantages of cryptocurrency
A huge advantage of using bitcoin in the calculation is speed. Unlike banking services, when you have to wait several days when paying a check or during a transfer before the money is credited to the account, the cryptocurrency comes to the balance almost instantly.
Minimum commissions or their complete absence. People who make transactions using credit or debit cards constantly pay some percentage of the amount for bank services. Using bitcoin as a unit of account,commission is almost never charged, except in some cases.
Afterword
Now you not only know what bitcoins are and why they are needed, but also understand the principle of the system, and also get acquainted with the main ways of making money on cryptocurrency. Unfortunately, no one can give you a guarantee of how successful this digital currency will be even in the near future, so carefully consider the possible risks and only then invest your personal savings.
