So what is Bitcoin and why the world so interested in it? Bitcoin is considered as a new currency that was created by an unknown person who goes by the name Satoshi Nakamoto. No banks are needed for the transactions which means no fees and utmost privacy. As more merchants around the world are accepting it, you can now buy pizzas and other products and services with it.
Transfering bitcoins is easy. People can send each other bitcoins via mobile apps or on their desktop and it is actually very similar to online fund transfer right now.
Bitcoins are actually created by solving very complex mathematical problems. This means that regular people like you and I can actually “mine” bitcoins by setting their computers to solve this problems. Overtime they can accumulate bitcoins.
Bitcoins are stored in “digital wallets”. They can be in the cloud or on your desktop. The wallet is similar to your online bank account that allows users to send or receive funds, pay for products or save them. But unlike bank accounts, bitcoin wallets are not insured by financial institutions.
Although there is a public log for all bitcoin transactions, the actual names of the buyers and sellers are never revealed. This is because only a relevant wallet ID is needed to transact. While this keeps bitcoin users’ transactions private, it also makes it difficult to trace them back to their merchants show anything goes wrong. This of course has led to bitcoins being the currency of choice for many nefarious activities.
Bitcoins are mostly unregulated at this point but the status quo may change anytime. For more information on bitcoins and how you can set up businesses using this currency, you can read Healy Consultant’s guide here: https://www.healyconsultants.com/bitcoin-business-bank-account/