Fortunately, it is easy to us to explain Bitcoin. BitQT is purely a digital phenomenon or process in which digital tokens can be stored in computer. You cannot see them physically but they only exist in the digital world.
Bitcoin is the largest cryptocurrency, due to its feature that it is simply impossible to shut down completely it is run on thousands of individual’s computers around the world.
Why we should use Bitcoin?
Bitcoin are not regulated by any country, men or bank. International payments can be done easily by using Bitcoins. Small businesses like them because they have not credit card fee. Some people or organizations use them just for investment.
How does Bitcoin work?
Each Bitcoin is stored in the computer or smart phone aap “digital wallet”. For better understanding its working firstly we should understand these terms:
Block chain: it is an open source ledger on which the entire Bitcoin network relies. All confirmed transaction can be recorded in block chain.
Digital Wallets: Bitcoins are stored in digital wallets app in a computer or smart phone. This wallet allows users to send or receive Bitcoins.
Miners: The independent companies and individuals who are participate in digital or Bitcoin network are called Miners. They are independently confirming transaction using high speed computer. In Bitcoin network miners are paidas a reward of their efforts.
How we can get Bitcoins?
There are three main ways we can get Bitcoins:
- By using real money we can buy Bitcoins
- We can sell things and let people pay us with Bitcoins
- Or using a computer then can be created
Advantages and Disadvantages of Bitcoins
Advantages of Bitcoins: it’s a huge advantage is that you can send or receive money anywhere or anytime day or night. Usually, limitations don’t exist when transactions happened across the world. You are the only in charge of your money. There is no authority in this system. It is a safe network for users. It is not compulsory for you to use personal information when making payments in Bitcoin network. All completed transaction is accessible to everyone in the network but personal information is not available. Every transaction is recorded to make you secure. There are no fees that’s why everyone like them even small business prefer them to invest their money.
Disadvantages of Bitcoins: so if Bitcoin is so great, why everyone is not using it? Obviously, it has some drawbacks too. Bitcoin is not accepted in many parts of the world due to lack of technology in many countries or lack of knowledge in many people. The Bitcoin network has not built protection mechanism yet. If you lose your hard drive in which your wallet app is store, the Bitcoins in that wallet are loss for forever. Additionally, if your wallet file is stolen by someone, you cannot call any bank or organization.
One more disadvantage of Bitcoin is that every transaction is irreversible. Once the transaction is initiated that mean it’s done. No one can reverse this transaction. Usually, in banking system in critical transaction there is a safety net but in Bitcoin technology there is no safety net.
Some recommendations we should take while using Bitcoin:
In Bitcoin every transaction happened publically means everyone in the network easily can see your balance and transaction log. This is the one big reason we should change our Bitcoin address after each transaction. For different purposes you should use multiple wallets to make sure your balance and transaction history private.
Future of Bitcoin:
No one knows the future of Bitcoin. It is not regulated by any country or Government, but some countries like Japan, China or Australia have begun to regulate it. Their Government starting to concern about taxation and at lack of control over the currency of Bitcoin.