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What is Bitcoin and Why You Should Care about It?

If you haven’t been living under a rock, then chances are that you have heard of Bitcoin, yet oftentimes, the media only features news stories, and therefore omits to present the digital currency to those who don’t know much about it.

In this article, backed by a couple of facts from BitcoinPlay, we will attempt to explain what it is, how it works, and of course, why it concerns you.

During the last few decades, the world’s financial system hasn’t seen much change. We have the good old banks which are still deemed as untrustworthy, the various denominations and currencies issued and controlled by the world’s governments, credits, debits, and the value of coin. Bitcoin, on the other hand, has either been presented as the revolution of the financial system, or a currency used by criminals to finance illegal acts.

What is Bitcoin?

To put things better into perspective, bitcoin is both a digital currency, but also a payment system that works without the need of a administrator, central repository or governing body, thus making it decentralized- basically, it is the digital currency of the people. The payment system is peer-to-peer, which means that all transactions take place between people, without an intermediary. However, these transactions are verified and recorded onto a public ledger known as the blockchain, which is basically the place where all transactions are stored and free to look at by anyone. Your privacy isn’t at risk though- unlike bank transfers, sending bitcoin to another person doesn’t require you to reveal your identity- the only information recorded is your bitcoin address, the sum sent, the time when it was sent, and the delivery address.

Why should I use Bitcoin?

There are many reasons why. For instance, sending money anywhere in the world is nearly instant, and the taxes are considerably lower than those required by banks.

Bitcoin can also be kept and used as an asset, because with time, its value increases. Since 2009, one BTC went from being value-less to over $5,000. Therefore, if back in the day, you would’ve purchased a coin for the price of $1, today, you’d be sitting on roughly $4,800.

How do I get Bitcoin?

It’s easy. Create a bitcoin wallet free of charge, head over to a bitcoin exchange and deposit the sum that you want exchanged, and receive your coins! From that point onwards, you can either choose to keep it safe to take advantage of its value increase, or spend it as a method of payment for merchants that accept the coin.

Are there any risks?

Yes and no. Bitcoin is volatile, therefore depending on the market and worldwide events, its value can either increase or decrease. Since its appearance, the trend has been mostly upwards, yet certain events did indeed shake the market, thus causing collapses in value- yet bitcoin always got back up.

Based on everything that has been outlined so far, we now hope that you have a better understanding of the digital currency, and that you are considering the idea of using it in the future! Don’t miss out!

For legal advice concerning bitcoin and cryptocurrency contact Selachii LLP today info@selachii.co.uk.

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