With the advancement in technology in our modern world, numerous innovations have been developed to make life easier in all ramifications. We have witnessed such in the world health sector, communication, entertainment and other sectors, so also it has sighted the monetary transaction system. The new system of transaction in the business industry especially for payment is the bitcoin payment system. Bitcom was introduced on 31st of October, 2008 by a group of programmers named Satoshi Nakamoto, it was however released and an open course software in 2009.
Bitcoin is an electronic payment system, designed as a digital currency based on mathematical proof which is not controlled or regulated under any central authority but transacted electronically with very cheap transaction fee. Bitcoin is not like the common money currencies, they are static and cannot be inflated.
They can be used to send or receive money from any part of the world, hence making trading easier. Bitcoins are not printed currency like Naira and dollar, they are free from inflation and other related currency threats. Bitcoins operate both on offline and online platforms. Due to the fact that bitcoin system works without any administrator, theU.S. Treasury categorized bitcoin as a decentralized virtual currency and it is called the first cryptocurrency.
Just like other currencies, bitcoin can be use to purchase goods and pay for services but it is electronically used. It is dubbed an unoriginal currency as it serves the purpose of other currencies without any qualms. The most fascinating feature about bitcoins system is that it is decentralized, it is independent, no institution controls the bitcoin network. Also, bitcoin is easy to set up and fast in operation but they are not refundable unless the recipient returns them. This puts people at rest. Bitcoins are recorded as blocks in the block chain, which is kept by the miner. A block is a newly entered transaction. The miner ensures all the block chains are verified and unadulterated.
How Bitcoins work is very tactical, it works as a dividend for payment processing whereby users offer their computing power to verify and record payments into a public ledger. This processing is called mining and miners are rewarded with transaction fees and newly created bitcoins. Aside from getting bitcoins from rewards, a miner can also get bitcoins through exchange with other currencies or services or product. Bitcoins are created digitally and it is free for anybody to participate.
Just like every currency, bitcoins also have policies, these are the rules that govern its operations, the highest bitcoins a miner can have is 21 million bitcoins. Although, they can be divided into smaller units, and the smallest unit is Satoshi, which is the one hundred millionth of a bitcoin. This buttress the fact that bitcoin is based on mathematics, this is done with the aid of software that operate based on mathematics formula. These software are free to access, that is why they are referred to as open source.
Over the years, bitcoin is gradually finding its feet in the global economy as it hit over 100,000 users of its system for product and services transactions in 2015. However, the European Banking Authority and other sources have stringently warned that bitcoin users are not protected by refund rights or charge backs due to the use of bitcoins by criminals. Bitcoin is not allowed in all countries, though warmly accepted in some countries. It is illicited in countries like China, Bolivia, Ecuador and Bangladesh owing to the nefarious attitudes of some users. Wallet is the bank of bitcoins and everyone is entitled to his or her wallet.
Platforms where bitcoins can be purchased or transacted.
Just like how the dependent currencies use bank as their source or base so also does bitcoin. These platforms are numerous in the US. The following are the platforms where bitcoin can be gotten:
- Coinbase: This is a US based company which operates one of the most popular wallets. They offer $5 bonus on every sign up.
- Local bitcoins: This is a platform which links buyers and sellers online and in person across the world. It is based in Finland.
- BitQuick: This is one of the fastest way to purchase bitcoins in the world. It is based in the USA.
- CoinCorner: This is another platform that allows the purchase of bitcoins using the credit and debit card from verified users. It is based in Isle of Man
- Bit bargain: This is a platform based in UK, it has numerous payment options for UK users
- Xapo: This is based in USA, it is known for its ease of use.
Since the discovery of bitcoins, some individuals have traded via this system and it has really turned to a gold mine for them. Below is the list of bitcoin millionaires in the world and their worth.
- Charlie Shrem: This young man started using the system in 2011 with 500 bitcoins. Today, he has a net worth of 45 million USD.
- The winklevoss twins:These two are the richest in Bitcoin club, they invested $11 millions in Bitcoins, In 2013 they claimed to hold 1% of the total existing bitcoins. Their net worth is over USD 400 million.
- Yifu Guo: This young man got his feet wet right from his university days, the started by using it as an extra source of income to pay his bills and other expenses.
- Jered Kenna: He is a former marine and currently prominent Bitcoin entrepreneur, yet finds his way to the list of Bitcoin millionaires. This man Worth’s over 30 million USD
- Roger Ver: He is also called Bitcoin Jesus, his network is over 52 million USD.