By Gern Blanstein
Bitcoin, often described as a cryptocurrency, virtual currency or a digital currency, is a type of money that is completely virtual and is not something that you can print, feel, touch or store in your safe or wallet. It's like an online version of cash and you can use it to buy products and services. For example there are bitcoin casino websites in Canada that are very popular with users.
Bitcoin was created by a developer named Satoshi Nakamoto in 2008. His idea for Bitcoin was to provide a legitimate, decentralized alternative to the global mainstream financial infrastructure.
Bitcoin enables monetary transactions or ‘spending’ with full transparency through a publicly available ledger called the blockchain. As in all financial systems security is key. To address this key issue, Nakamoto developed a process so that a bitcoin transaction uses both a public key, which is generally known to everyone, and a private key known only to the bitcoin user. No coins can be spent without knowing the private key. To use bitcoins, you will first have to acquire some bitcoins.
There are several ways to acquire bitcoins. The most important thing to remember is that the platform you are using or the person your bitcoins from is legitimate, as you would with any other online transaction. Bitcoin experts say that it is not a good idea to use exchanges to store your bitcoins for any length of time. Exchange storage is only as secure as the exchange’s security infrastructure, so although many people do use this option, the coins are still not within your control. So, storing on an exchange should not be considered as anything other than a temporary option. The recommend you use a software wallet to store your bitcoins. This allows you to secure your bitcoins on your own computer where you can encrypt the wallet and make backups to ensure your bitcoins are safe.
New bitcoins have to be generated through a computational process called mining. You do it by letting your computer hardware calculate complex mathematical equations, which can be done at any given time of the day. Doing so enables you to become an integral part of the bitcoin network, not only by securing the network through your dedicated hardware, but also by generating more coins to put into circulation.
There are certain similarities to how other resources, such as gold, are mined: The available supply is slowly increased as more is being put into the mining process. That said, the way bitcoins are mined is by solving complex computational problems, which require more resources as time progresses. Bitcoin mining actually means adding more bitcoins to the digital currency ecosystem. There will be a total of 21 million bitcoin in circulation by 2140.
The high liquidity associated with bitcoin makes it a great investment vessel if you're looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand and lower inflation risk.
If you want to try using Bitcoin there are four simple steps to get started. First, create a Bitcoin wallet. Then get your first bitcoin. Next up you will have to secure your Bitcoins and then you will be able to send and receive Bitcoin.
It is probably worth starting by buying 100 dollars of bitcoin. As the value of bitcoin grows, your money will grow too. Experts say you can expect about 8–9% increase per month at least but the best way to test this is to try on your own with the initial $100.00 and see if that works for you. You’ll get into the ‘Bitcoin space’ and feel it out. Many Bitcoin ‘newbies’ find it’s a great way to invest $100 for the long term.
You can convert bitcoin to cash and ultimately move it to a bank account via a third-party exchange broker which includes bitcoin ATMs and debit cards that will exchange your bitcoins for cash at a given rate. It is simple and secure.
