Bitcoins – Should You Use Them?

Bitcoin was launched as a private initiative in 2009. Unlike traditional currencies, including the Euro, Sterling and Dollars, it is not handled with a central economic authority. Instead, it is underpinned with a peer-to-peer network of its users’ computers. This is a lot like how Skype, an online video chat service, operates. USI-TECH Cambodia

The basic unit of value is the bitcoin. Nevertheless each bitcoin can be subdivided into satoshies. A single satoshi is comparable to one hundred millionth of a bitcoin (ie, a bitcoin divided to eight quebrado places). 

Bitcoins and satoshies can be transferred from one internet user to another in order to fund goods or services at almost zero cost. This kind of allows you to make international transfers without having to waste time with exchange rates and onerous loan company charges. Bitcoins can be bought and sold for traditional cash at special exchanges.

Bitcoin wallets

In order to use Bitcoin, you desire a wallet, a special piece of software in which you store, send and receive bitcoins. There are three sorts of wallets, software billfolds, mobile wallets and web wallets.

Software wallets are installed on your laptop or computer and they give you full control of your budget. Mobile wallets are installed in your smartphone or tablet and allow you to have Bitcoin for daily transactions in outlets and supermarkets by deciphering a quick response (QR) code. Web wallets are located on the Universe Wide Web, ie they are really a form of cloud storage.

Payments using bitcoins are quite simple. They can be made from purses on your desktop or smartphone just by entering the receiver’s address, the total amount and then pressing send. Smartphones can also have a receiver’s address by scanning a QR code or by taking two phones that contain near-field-communication (NFC) technology, a form of radio communication, near each other.

Getting payments is merely as easy… all you have to do is give the payer your bitcoin address.

Protecting your finances

A bitcoin wallet is much like a wallet packed with cash. To reduce the risk of loss, you should keep only a small amount of bitcoins in your laptop or computer or smartphone and keep the majority of your bitcoins in a more secure environment, such as an offline wallet. Provided your wallet has been protected, an offline back-up will allow you to recoup your wallet, should your computer or smartphone be stolen.

Encrypting your budget allows you to set in place a password that must be input before cash can be withdrawn. On the other hand, recovering a bitcoin username and password is impossible in case it is lost. That is why you need to be sure you can remember your password. If the value of your bitcoins is significant, you might store the password in a lender vault or wherever you store important papers.

In order to be as secure as possible, you should store off-line back-ups in several locations using various media such as USB flash drives and CDs.

Because bitcoin goes on software you down load to your computer (PC or laptop) or smart phone, you need to post on this software regularly in order to keep your wallets and transactions safe.

Advantages of bitcoins

Bitcoins have several significant advantages:

1-you can send and receive limitless amounts of money instantly at any time to and from anywhere in the world.

2-processing does not cost any fees or only very small fees.

3-bitcoin transactions are irreversible, which protects sellers from the fraudulent chargebacks that are increasingly common with charge cards.

4-payments are made without personal data being exchanged, which provides strong protection against identity theft.

5-the sales receipt and payment process is completely neutral, transparent and predictable.