The world of business has greatly been revolutionized with respect to digital technology. Business transactions are easily conducted using tel-conferencing, emails and social media platforms. In addition digital currency has become common in business. A good example of digital currency is Bitcoin. In this article, key focus will be to demystify the concept of Bitcoin, how it operates, frequently asked questions (FAQ) and most significantly how it has transformed online marketing and shopping.
The concept of Bitcoin
Bitcoin is a form of digital money. This means that it neither involves the use notes nor coins. Bitcoin system was developed by a number of individuals but the idea is mostly credited to a person known as Satoshi Nakamoto who is alleged to be a Japan citizen though the Bitcoin software could not be found in this country.
How Bitcoin system operates
Bitcoin system is very unique in terms of how it operates. It has strongly upheld the principle of confidentiality when conducting money transactions. It enables individuals to conduct or transact unknown money dealings. This is of essential benefit to individuals involved since it information concerning the money dealings is kept confidential as well as the identity of individual paying and receiving the money. More so, the Bitcoin system shields individuals from the risk of dual spending.
Meaning of dual spending, how Bitcoin system has curbed it.
Dual spending is the process of coping digital money and using it more than once. Bitcoin system solves the issue of dual spending by ensuring that all the digital money transactions are displayed in a public list. If an individual conducted a transaction using Bitcoin currency, the legitimacy of the transaction would be confirmed by checking on the public list to verify it that the Bitcoin currency had not been previously used.
How Bitcoins are used in online marketing and shopping
Bitcoins are stored in a digital folder which can be your personal computer or an online website you have created either as as a buyer or a seller or for your own use. One can have as many digital folders as they wish or they fell they are capable of managing as well as Bitcoin addresses. Bitcoin addresses simply enable a person to receive money from other individuals.
Frequently Asked Questions (FAQ)
With regards to Bitcoin, there are numerous questions that individuals pose. Some of them include:
1) Is it a popular and famous form of digital currency?
It is obvious that many individuals who have not used Bitcoin before will want to know if the system is being utilized by others. Yes it is. Since its inception, Bitcoin has attracted many people all over the world. In fact, statistics show that 10.71 million Bitcoins exist. Further, in a single day, Bitcoin system handles about 45,000 transactions involving millions of money. This evidently points out to the fact that Bitcoin system is real and fully operational.
2) How are Bitcoins acquired?
Acquiring Bitcoins is a very easy process. They can be acquired through mining, exchanging them for Euros or Dollars using Bitcoin service lenders or by tendering your services to others in exchange for Bitcoins. When it comes to mining, it involves minting Bitcoins by means of a Bitcoin miner.
In conclusion, Bitcoin is a digital money system which has made the world of business better and made transactions fast. Due to its power to uphold privacy through anonymous digital money it is gaining favor among many individuals.