When it comes to the world of crypto, Bitcoin is one of the most talked-about digital currencies. But many still don’t know what Bitcoin really is.
Many would agree that Bitcoin is a type of new-age, complicated, and fascinating currency that circulates only in the crypto world. One of the benefits of Bitcoin is that it enables you to use your tokens anonymously.
If this is your first time encountering Bitcoin, you may be probably thinking that it is a little dangerous and suspicious. We are here to provide you some information that will help you to know and understand Bitcoin clearly. So, if you want to know more about it, then keep on reading!
Defining What is Bitcoin
As we mentioned earlier, Bitcoin is a type of digital currency used for paying and availing products and services. Essentially, this works just like other fiat currencies, like Euros and US Dollars. Many people say that Bitcoin is way better and more preferable to use than fiat currencies because of the following reasons:
“Pseudo-Anonymous” – You can connect your Bitcoin tokens into your wallet ID instead of your details. But, this does not mean that Bitcoin is 100 percent anonymous.
Digital – You can’t see any Bitcoin bills or physical Bitcoins. This digital currency circulates only in the crypto world. Each transaction done using Bitcoin is being monitored by blockchains.
Decentralized – The good thing about Bitcoins is that it is not being controlled by a central bank or government.
Satoshi Nakamoto is/are the person/s behind the development of Bitcoin. The reason a lot of individuals are encouraged to invest and use Bitcoin is that it does not have banks and middlemen that charge hefty fees. Considering that it circulates only in the online world, you will use your wallet ID to perform transactions. You don’t need to use your name and other information, which makes it to be a “pseudo-anonymous” digital money.
Bitcoin is not Completely Anonymous
This is the reason Bitcoin is considered to be pseudo-anonymous digital money. This means that every transaction happening using Bitcoin doesn’t guarantee 100 percent anonymity. The government agencies and talented hackers have the power to monitor almost everything, including Bitcoin. Even though the transactions made in Bitcoin are being transferred randomly through a peer-to-peer network, this is not always the case.
Once the hacker gets access to the Bitcoin network, the information he/she gathered will be used to know the main source of the transaction.
Bitcoin Mining is 100 Percent Legal
Some people think that mining bitcoin is illegal, but it is not, especially in the US. But different state governments impose rules and regulations on how they will treat Bitcoin. If you are living in a country that restricts bitcoin, mining one may be risky for you.
Is Bitcoin Safe To Use?
Just like your physical wallet, your Bitcoin wallet can be stolen by hackers. So, it is a must to store your Bitcoin tokens in a safe and secure place. One of the most effective ways to ensure that your bitcoins are protected against hackers is to get a Bitcoin wallet.
Bitcoin is becoming more and more popular because of its relative anonymity nature. Just like the fiat currencies, you can also use your Bitcoins in purchasing goods and availing services. Using “wallet” exchanges and gift cards, you can use Bitcoins for buying items from Amazon or Walmart.
Take note that Bitcoin is not the only form of digital money that circulates in the crypto world. You can find other forms, such as Ether. So, if you are asking if investing in the Bitcoin-Code.app is worth it, the answer is yes. Just make sure that you know how to handle it securely and safely.