WHAT IS BITCOIN ?
A medium of exchange
When you ask the question “What is Bitcoin”, you’re asking a more fundamental question that deals with the origin and intent behind money itself. Essentially, money is nothing more than worthless pieces of paper. They’re just banknotes made of cotton paper with an inline watermark and some color threads. And – as you’re probably already aware – they’re not edible. But as a medium to exchange of goods and services money is an ingenious invention.
Bitcoins – the cryptocurrency associated with the Bitcoin technology and network – works a lot like traditional money (fiat money). It’s a social construct with an assigned value, which makes it possible for it to be used as payment, unit of measurement and store of value. Using a bitcoin trading platform Australia, you can trade and exchange bitcoin in the same way you can with fiat money. Neither bitcoin nor fiat money is backed by any materiality like gold or oriental rugs. Instead, its value derives from the fact that we all trust it as a mediator of exchange. But there are some important differences between the two currency cousins. If you are in need of more information you can go on over to the bitcoin loophole site as well as reading down below.
…but totally different
Fiat money is a currency that’s backed by a central bank or governmental authority, that is to say: it’s legal. Bitcoins, on the other hand, are not a legal currency in the conventional sense and the digital currency is not backed by any central government or bank. This means that you’re not yet able to spend your bitcoins in most physical shops around the world – and you can’t pay or taxes with it. Bitcoin is a decentralized, distributed network as well as a currency and the supply of bitcoins is essentially controlled by an algorithm and its high level of security derives from cryptography. By learning how to hort Bitcoin, you can start to grow your bitcoin wallet and as the rate of bitcoin changes, you can often find yourself making more money, almost as if it’s an investment.
The benefits of Bitcoin
Bitcoins has quite a few fundamental advantages compared to its older cousin fiat money:
- Bitcoins are transferred directly between two people (P2P) via the internet without using a middleman.
- Bitcoin transactions are faster, easier and cheaper than conventional methods of transfer.
- Bitcoins can be used all around the world and traded with the assistance of the bitcoin revolution app
- The Bitcoin technology minimizes paperwork and reduces paper consumption.
- Bitcoin assets cannot be frozen.
- The combination of private and public keys makes bitcoin transactions very secure.