How the Bitcoin works

Bitcoin is a decentralized electronic currency based on crypto. In other words, it is not regulated by a financial institution or government. Unlike a traditional bank account, you do not need a long list of documents as an ID in order to establish what is known as a bitcoin wallet. Your portfolio will allow you to carry out all your exchange (Send / Request) between your accounts as well as with other people.

How to set up an account

You can acquire a bitcoin portfolio from a bitcoin broker like blockchain, coinbase, xapo or other. When you open a portfolio, you receive a bitcoin address that is a series of numbers and letters, in the same way as an account number for a bank account and a private key that is a series of numbers and letters, which Serve as a password.

How Bitcoin Works as an Anonymous Payment Processor

You can do 3 things with bitcoins, you can make a purchase, send anonymous money to someone or use it as an investment. More and more merchants accept bitcoins as a form of payment. By using bitcoins instead of cash, you're essentially making anonymous transaction transactions.

How Bitcoin works as an investment

The price of a bitcoin fluctuates from time to time. Just to put things in perspective, in early 2016, the average price of a bitcoin was about $ 800 per bitcoin, but by the end of 2016, the bitcoin price rose to over $ 1,100. This means that if you had 10 bitcoin worth $ 800 at the beginning of 2016 and you stored it as an investment by the end of 2016 these ten bitcoins would have been worth more than $ 11,000 instead Of $ 8000. Many people store bitcoins because of the fact that the value of it fluctuates.

Bitcoin Casino and Poker Sites

Due to the anonymity of bitcoin the game industry has taken bitcoin as payment method. The two bitcoin casinos and the bitcoin poker sites come to life and offer their players to make deposits, play with bitcoin at tables and withdraw directly to their bitcoin wallet. This means there are no taxes or opportunities for government control.

How to send Bitcoin

For you to pay for goods and services or to send bitcoins to an individual, 3 things are necessary. Your bitcoin address, your private key and the bitcoin address of the individual. From this point, thanks to your bitcoin wallet, you will put 3 information, which are: input, balance and output.

Entry refers to your address,
The balance refers to the amount of bitcoins you are going to send
The output is the address of the recipient.

Learn more about how it works and find tricks and sites to harvest this virtual currency, the bitcoin becomes a very exciting currency, with many possible areas of use.

How the Bitcoin works