How Bitcoin Works

Bitcoins are a decentralized form of cryptocurrency, meaning they are not regulated by any financial institution or government. For example, unlike a traditional bank account, you do not need a long paperwork like your ID to establish what is known as a bitcoin wallet. A bitcoin wallet is something you use to access your bitcoins and send bitcoins to other people.

How to set up an account

You can get Bitcoin Wallet from Bitcoin Broker like Coinbase. When you open a wallet through a certified broker, you will be given a bitcoin address that contains a number of accounts and a series of characters with the same number and a private key that simultaneously serves as a series of numbers and letters, which serve as your password.

How Bitcoin works as an anonymous payment processor

You can do 3 things with Bitcoin, you can make a purchase, send money anonymously to someone or use it as an investment. More and more merchants are accepting bitcoins as a form of payment. By using Bitcoin instead of cash, you are basically making that purchase anonymously. The same thing goes for sending money, you don’t have to deposit a mountain of money to set up Bitcoin anonymously, basically you can send money anonymously to someone else.

How Bitcoin works as an investment

The price of a bitcoin fluctuates from time to time. To put things in perspective, at the beginning of 2013, the average price of Bitcoin was about 400 400 per bitcoin, but by the end of 2013, the price of Bitcoin had risen to more than 1000 1,000. This means that if you had 2 bitcoins at the beginning of 2013 and you saved them as an investment in late 2013, these two bitcoins should be worth more than 2000 2000 instead of $ 800. Many people save bitcoins because of price fluctuations.

Bitcoin casinos and poker sites

The gambling industry has adopted Bitcoin as a payment method because of the anonymity of Bitcoin. Both Bitcoin Casino and Bitcoin Poker sites are coming to life and offering their players to make deposits, play with Bitcoin at the tables and withdraw it directly to their Bitcoin wallet. This means there is no tax or possibility for government control. Much like the regular Nevada Casino where you don’t need to register anywhere and all your transactions are anonymous.

How do you send bitcoin

To pay for your products and services or to send Bitcoin to someone, 3 things are needed. From that point on, your Bitcoin address, your personal key, and the person’s Bitcoin address address, through your Bitcoin wallet, you will store 3 pieces of information, which are: input, balance, and output. The input refers to your address, the balance refers to the amount of bitcoin you are about to send, and the output to the recipient’s address.