Existent for several years, bitcoins has never been as popular as recently. There has been a current price surge as futures trading begins. Many people have questions about them; are they legal, where do they come from, where can you get them?
What are Bitcoins?
Bitcoins first appeared in 2009. Satoshi Nakamoto is supposedly the developer behind its creation, who has since disappeared and left behind a Bitcoin fortune! It was the first cryptocurrency that existed. One advantage of Bitcoin is that it can be stored offline on a person’s local hardware. Known as cold storage, it protects the currency from being taken by others. It remains incredibly popular as the most famous cryptocurrency over time.
How Bitcoins work
Bitcoins are completely virtual coins designed to be ‘self-contained’ for their value. Thus, there’s no need for banks to move and store the money. They are like physical gold coins that possess value. You can use bitcoins to purchase services and good online. What you can also do online is play games at secured sites like King Jack Casino. On this top casino, you will find several games which will surely please you! Bitcoins can also be tucked away and hope that the value rises over the years.
Its value varies, you can have a look at it’s worth on sites like coindesk. Currently, there are more than two billion dollars’ worth of bitcoins in existence. Once 21 billion coins is attained, bitcoins will stop being created. That will be sometime around 2040. There is no precious metal behind the bitcoins since they are totally decentralised and unregulated. There is no depositor insurance coverage nor national mint or national bank.
Fees to use Bitcoins
No ongoing banking fees are attached with bitcoin, because there are no banks involved. There are only very small fees to use it. A one-time transaction fee is charged by the owners of some server nodes. That’s a few cents every time money is sent across their nodes. One percent fee is charged by most mining pools for a small donation from the people who join their pools. The fees are much cheaper than wire transfer or conventional banking fees.
Bitcoins are very secured, since your bitcoin wallet can be stored online or offline without any risks, unless you lose the hardware that contain bitcoins. The recommended method to store your bitcoins is offline as it is hacker-resistant. You can use wallets like KeepKey, Nano Ledger S, Trezor, Coinbase, MyEtherWallet, Jaxx, Electrum or TLDR to store your bitcoins safely.
The reason why there’s a lot of controversy around bitcoins is because it is not created by any central bank. Nor is it regulated by any government. Therefore, no banks logging your money movement nor government tax! Another reason is because it completely bypasses banks. They are transferred via a peer-to-peer network between individuals. No middleman bank to take a slice! One thing that you should know is that bitcoins transaction is irreversible. Once you’ve made a transaction online using bitcoins, the result is final.