Bitcoins are a form of decentralized crypto-currency. In other words, they are not regulated by a finance institution or government. As such, unlike a traditional bank account, in order to establish what is known as a bitcoin wallet you don’t need a long list of a paperwork such as an ID. The bitcoin wallet is what you’ll use to get access to your bitcoins and send bitcoins to other people.If you wish to learn more about this, visit more info here
You can buy a bitcoin wallet from a broker like Coinbase for example. When you open a wallet through a licensed broker, you are given a bitcoin address that is a series of numbers and letters, similar to a bank account number and a private key that is also a series of numbers and letters that act as your password.
How does Bitcoin work as an anonymous processor of payments
With bitcoins you can do 3 things, make a purchase, anonymously send money to someone or use it as an investment. More and more retailers have embraced bitcoins as payment method. You are essentially making that purchase anonymously by using bitcoins rather than cash. The same goes for sending money, based on the idea that you don’t have to request a mountain of payment in order to anonymously create a bitcoin, basically you can anonymously transfer money to anyone else.
How does Bitcoin function as an investment
The price of a bitcoin fluctuates sometimes. Just to put things in perspective, back in early 2013 a bitcoin’s average price was about $400 per bitcoin, but by the end of 2013 bitcoin ‘s price rose to over $1000. It meant that if in early 2013 you had 2 bitcoins worth $800 and deposited it as an investment by the end of 2013 those two bitcoins would have been worth more than $2000 instead of $800. Many people store bitcoins because it fluctuates in value.
Bitcoin Casino and Online Poker
Because of bitcoin’s anonymity the gambling industry has taken up bitcoin as a method of payment. Both Bitcoin casinos and Bitcoin poker sites are coming to life and offering deposits to their players, playing at the tables with Bitcoin and withdrawing directly to their Bitcoin wallet. This means there are no taxes or possibilities to control the government. Much like a regular casino in Nevada where you don’t have to register anywhere, and all your transactions are anonymous.
How To Send Bitcoin
To pay for goods and services, or to send bitcoins to an individual, you need 3 things. Your Bitcoin address, your private key and the Bitcoin address for the user. From that point on, you’ll put 3 pieces of information through your bitcoin wallet, which are: input, balance, and output. Input refers to your address, balance refers to the amount of bitcoins that you will be sending and output is the address of the recipient.