4 Things You Need to Know About Bitcoin

Bitcoin

The news is full of Bitcoin that has risen dramatically in the past few weeks. Satoshi Nakamoto, a ghost identity until now, released the bitcoin software in January, 2009 as an open source code. The value of Bitcoin fluctuates, quite unpredictably, which depends on how many currently own bitcoins and how much they are wanting to pay based on a peer-to-peer technology. As of 15th December, 2017, its value stands at $17,900. So, to get a clearer understanding of what it is,  you need to keep in mind the following simple points:

1) Irreversible Payments:

The transactions made using Bitcoins are irreversible. And if something goes wrong with the transaction, you may no one to blame at all, since there is no third party involved- no banks or governments. With such a risk, you have to be extremely sure about the people or organization you are meaning to do business with. But, you need not worry about typing in wrong address, because bitcoin is not going to allow you to send your money to an invalid address.

2) Private Keys:

The Bitcoin wallet can be used to send or receive coins. One or more private keys are saved in every bitcoin wallet file on the blockchain. You can withdraw your bitcoin anytime simply by importing the associated private keys using that wallet with the help of a backup.

3) Bitcoin Price:

The price of Bitcoin in terms of conventional currency, being volatile, can fluctuate significantly on a daily basis. Its price is determined by the means of supply and demand balance. Its price basically increases as more and more people start using it.  In early 2011 one Bitcoin was worth less than one USD, but in 2017 one Bitcoin is worth thousands of USD and tends to keep on increasing with increased demand.

4) Bitcoin is not anonymous:

As long as the transactions are stored publicly, anyone can have access to the Bitcoin address, the balance and other transaction information. You are safe as long as no links the pseudonym to you. But as soon someone links it you, your identity is no longer preserved. Sometimes, even when the transaction is hidden using some privacy protection like CoinJoin, there may be a possibility to make the link using information leaks, even including information such as the amount and time of the purchase.

The future for Bitcoin is uncertain, but there are good chances that it’ll evolve and one day, becomes a mainstream currency.

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