Before answering the question of why Bitcoin is needed, you need to know what it is. Bitcoin is an innovative electronic currency that is rapidly gaining popularity in society. Every day, more and more people learn about this type of earnings, like cryptocurrency mining. However, not everyone fully understands what bitcoins are and why they are needed. Let's try to understand this issue, and also try to understand where such demand for digital currency came from.
Where can I pay with bitcoins?
If you are going to become a professional miner, you should understand that in Russia you will not be able to officially pay with cryptocurrency. For example, if you want to buy a car, real estate or just a cup of hot coffee, you will have to pay with the state currency - the ruble. No seller can issue you a check if you intend to pay for the goods with bitcoin, as this violates the current legislation. However, do not prematurely abandon the extraction of bitcoins, since by the end of 2017 the situation may change for the better. The State Duma, with the direct participation of the Ministry of Finance and the Central Bank, is already working on a bill that will control the existing types of cryptocurrencies and allow each citizen to make transactions using digital money.
This begs the logical question, why is Bitcoin needed if today you can’t buy anything for it? You can buy, but only in the shadow market. All transactions take place fairly quickly, safely and anonymously. You can pay almost any product on the Internet without any commission or go to one of the resources that offers the exchange of cryptocurrencies for money that is familiar to most people, such as euros, dollars or rubles.
Where does cryptocurrency come from?
Bitcoin is the result of complex computer calculations. Every day, there are more and more bitcoins, which leads to a complication of computing processes and an increase in the time for their processing. At the same time, emissions are constantly decreasing, and in 2021 it will be zero. The limited amount and complexity of cryptocurrency mining leads to the fact that the cost of bitcoin is constantly growing. It is with this that increased interest in this currency is associated.
Why are bitcoins needed, and who buys them?
As a rule, citizens of Eastern countries and Europeans are interested in acquiring electronic currency. For example, in Germany, you can completely legally acquire real estate by paying the seller of bitcoins. In Japan, you can dine well in a restaurant, paying the bill with cryptocurrency. This is very convenient, because you do not need to have a lot of time and lose huge percentages for a completed transaction.
However, not everyone is in a hurry in this way to spend their savings, which are stored in the form of a digital currency. Most Bitcoin owners who buy coins from miners, deep down hope that the rate will suddenly rise and there will be an opportunity to profitably sell cryptocurrency. This is one of the ways to make money using bitcoins. Thus, many of those who bought digital currency, as soon as it began to gain popularity, were able to make a fortune.
How to display digital currency?
Before you start mining cryptocurrency, you need to know how to withdraw bitcoins. There are special wallets for this purpose. They can create an unlimited number of addresses to which a certain cryptocurrency is transferred, in our case, bitcoin.
In order to make a deal, for example, to buy bitcoins, give the seller of digital coins the address of your wallet. As soon as the receipt arrives, the system will notify you of this. Now we know why a bitcoin wallet is needed. Let's figure out how to create it on the official website.
How to get a wallet?
Most novice miners spend a lot of time on all kinds of resources, looking for information on how to create a bitcoin wallet on a computer. This is nothing complicated. It is enough to go to the official website and download the software client. This method is considered the safest. A wallet installed on a computer allows you to both withdraw bitcoins and store them (accumulate).
It is also worth considering the fact that when installing the wallet from the official site, you need to have access to the Internet, since information about all transactions completed will be downloaded. The available hard disk space must be at least 100 GB.
How to get bitcoin?
There are several ways to become a happy owner of Bitcoin:
- Mining
- Hand-made purchase.
- Exchange.
- Exchangers.
Most often, people who know why Bitcoin is needed and how to turn it into a source of income use Internet exchangers. However, it is worth considering the fact that on exchangers everyone offers their own conditions for making a transaction. It is necessary to carefully study all available information so as not to run into the sky-high commission that inventive entrepreneurs disguise for an attractive course. As a rule, many exchangers offer up to $ 5,000 for bitcoin, although the real exchange rate of the bitcoin to the ruble is 1: 228000.
You can independently engage in the extraction of digital currency, using the power of your computer for this. This method is called mining. As a rule, in order to increase the speed of mining, the so-called farms are made, which are equipped with several powerful video cards that allow for more calculations per second. According to unofficial statistics, a productive farm is able to pay for itself within a year, or maybe earlier, because the rate of bitcoin to the ruble is constantly growing.
The reliable and easiest way is to buy bitcoin on one of the major exchanges. But to make a similar transaction with a bank card will be problematic. Today, all banking institutions under the jurisdiction of the Russian Federation are extremely negative about transactions of this kind. No risk management department wants to get involved in gray currency, so they prefer to block such financial transactions, the number of which has recently increased sharply, as people have become more knowledgeable and know why bitcoin is needed.
Reliable protection
The most common payment method in online stores is by credit card. However, it is worth considering the fact that when "credit cards" were created, no one even assumed that the Internet would appear, and even more so that financial transactions would be made in it. That is why credit cards cannot be called reliable. By purchasing any product and leaving personal data, you risk losing control of your funds in your bank account.
Despite the rather high cost of bitcoin, a transaction in this currency does not imply the disclosure of personal data. All that is required of you is to enter a public and private account. Many people can know the public account, including the person with whom you are making a deal. However, private - known only to you. Only when these two keys interact, it becomes possible to sign a check and make a transfer.
No inflation
The most common problem that all world currencies face is inflation. It occurs when the country's economy is in critical condition and new money must be poured to maintain it . As soon as the state launches its typewriter, inflation immediately sets in. Such measures lead to the fact that the monetary unit loses its value by exactly as many percent as new notes were issued.
Bitcoin is reliably protected from such a negative phenomenon, since the number of coins that can be created is strictly limited. According to official figures, the maximum number of bitcoins is 21 million coins, which will be mined as early as 2021.
Anonymity
Sometimes people tend to ensure that no one finds out about a particular purchase. Using cryptocurrency for calculation, you can reliably hide your personal data. Despite the fact that information about your wallet and how much bitcoins are in it is available to any user, no one will know the real name of the owner. The payment system does not oblige users to enter personal data during registration.
Decentralization
By keeping your money in the bank, you demonstrate your confidence in this financial institution. However, as practice shows, you can only trust yourself, since any bank has the full right to dispose of the funds stored in its own discretion. Often there are situations when you need a substantial amount of money, but you cannot receive it either at an ATM or at an office. The cash withdrawal procedure is intentionally delayed in order to gain time.
If you have bitcoins, then you are truly independent from the services of all kinds of intermediaries. Your funds are always available, and you can spend them at your discretion at any time.
Access
Unlike other payment systems, a bitcoin wallet will never deny you access to personal funds. Take a look, for example, at Yandex, which can at any moment consider that you are spending money incorrectly or limit your functionality, explaining that the security service doubts that the owner controls the wallet. In this case, you have to identify yourself in every possible way, which takes a huge amount of time and effort.
A few more advantages of cryptocurrency
A huge plus of using bitcoin in the calculation is speed. Unlike banking services, when you pay for a check or during a transfer, you have to wait several days before the money arrives at the account, cryptocurrency comes to the balance almost instantly.
Minimum commissions or their complete absence. People who make transactions using credit or debit cards constantly pay a certain percentage of the amount for bank services. Using bitcoin as a unit of account, the commission almost never charges, except in some cases.
Afterword
Now you not only know what bitcoins are and why they are needed, but also understand the principle of the system, and also familiarize yourself with the main ways of making money on cryptocurrency. Unfortunately, no one will give you a guarantee of how successful this digital currency will be even in the near future, so it’s good to review the possible risks and only then invest your personal savings.