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You’ve been hearing a lot about Bitcoin. But just what the heck is it? Here on PrestsBlog, I will explain the basics about bitcoin.
Bitcoin in modern day is a digital Currency type used to generate units of currencies and verify the transfer of funds by encryption techniques operating independently of a central bank. What this means is that bitcoin can be a fund value that has its currency equivalent of different countries, and it can also be a payment option.
By mere applications, once you have enough Bitcoins in your coinbase worth a certain currency equivalent, you can pay for services so long they accept bitcoin payment options.
Bitcoin is a commodity that can be traded for goods and services. Just like beanie babies, tulips, diamonds, chickens, cows, horses, cars, silver, gold, pork bellies, orange juice, wheat, just about any commodity item you can think of…. No one is questioning that bitcoins can be traded as a store of value as all commodities can. Bottom line for bit coin, no it’s not money.
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There are two main bitcoin uses.
- BITCOINS AS CURRENCY UNITS:
Bitcoins are created and held electronically. 1 BTC(Bitcoin) is equivalent to about $440
You have to know that with the emergence of bitcoins, there is a new currency unit introduced to the world, that’s why its tagged "the future of world money". To show the supremacy of bitcoins, The IRS defined it as a property, and not a currency. Once its owned, it's yours.
"It is a denominated commodity that is electronically tradable. It is not electronic dollars. It is more like electronic gold, electronic wheat or electronic beanie babies. There are 21 million of them but each can be subdivided into literally 100,000,000 parts (8 decimal places). That’s 2,100,000,000,000,000 bit coins, or 2.1 quadrillion pieces".
One good explanation from a Reddit user about bitcoin:
- BITCOINS AS PAYMENT OPTIONS:
Platforms like Sacramento Kings, OkCupid, the Richard Branson's rocket ship accept bitcoin as payment options, according to web sources, a customer bought a Tesla Model S ride with bitcoins stacks. More world top brands are embracing bitcoins as payment options.
The major cons about bitcoin exchanges is that it is vulnerable or what we know as prone to hacking. Well that’s the major problem about online payments.
The comment box is opened for comments regarding questions about bitcoins. Prest responds to comments as soon as they are read.
