Bitcoin: what is it?

If we consider the bitcoin system, then in simple terms it is a worldwide network of electronic digital money. It is worth noting that bitcoin is the first decentralized P2P payment network; the peculiarity of Bitcoin is that it has no central authorities. For consumers, Bitcoin is similar to cash, but for the worldwide Internet, Bitcoin can also be considered as a triple-entry accounting system.

Who created it?

Returning to the history of Bitcoin, it must be said that this system was first described more than 20 years ago by Wei Dai, who allowed the implementation of the so-called cryptocurrency concept. He proposed the idea of a new format of money, where cryptography is used as a direct management body to control transactions and emissions. Later, Satoshi Nakamoto first published evidence of the Bitcoin principle. A lot has changed since then, and now many professional developers are working on the development of Bitcoin. As for Satoshi, the Bitcoin project was abandoned by him literally a year later.

How often do people use?

Many companies today use the Bitcoin network. Both individuals and large corporations use Bitcoin, and even online services (for example, Flattr and WordPress). The development of the Bitcoin network is taking place by leaps and bounds.

How do I get Bitcoin?

There are several ways to receive Bitcoin funds:

• Receive bitcoin as payment for services or goods
• Buy bitcoin in bitcoin exchangers
• Exchange through other users of the system
• Earn bitcoin through mining

Are there any difficulties with making bitcoin payments?

There are no difficulties with making bitcoin payments; it is much easier to make a transaction than, for example, a financial transaction with a bank card. To make a Bitcoin payment, you need to:

1. Open a wallet
2. Enter the recipient's address
3. Specify the amount
4. Confirm your intention by clicking "send"

For convenience, most wallets read a QR code to receive the destination address of funds. Bitcoin technology can also be used.

The main advantages

1. Small amount of commission

At the moment, after making a bitcoin payment, the user will either not pay the commission or will pay a small amount of commission funds. Each user can enable the payment fee for priority processing of the transaction by the system. There are also processing companies that specialize in implementing bitcoin transactions directly; for example, such companies can convert bitcoin into fiat currencies, those that are transferred directly to the accounts of entrepreneurs on a daily basis. Such services are based on Bitcoin and provide for lower fees than when working with PayPal.

2. Free payments

Another advantage of Bitcoin is that any user can receive a sum of funds quickly and in every corner of the globe, without time limits, days off and taxes.

3. Risk-free payments

All payments of the Bitcoin system are absolutely secure; each transaction is confidential and does not contain any information about the participant of the operation. This is very important for entrepreneurs, because thanks to Bitcoin, an entrepreneur receives information protection, as well as protection from fraud and losses. Bitcoin allows businesses to enter new markets, working with low fees and administrative costs, while expanding their areas of influence.