If you’re confused about what bitcoin is, how it works, why it’s such a revolutionary new concept, and–perhaps most importantly–where to buy bitcoins, then you’re going to want to read this article…
What Is Bitcoin?
Bitcoin is a decentralized “cryptocurrency”.
Let’s break that down.
The “decentralized” part means that it’s a currency which–as opposed to fiat currency–cannot be controlled by one single government or organization.
The word “cryptocurrency” simply means that Bitcoin is a currency (something people agree holds value) and each transaction is encrypted, meaning it’s more or less entirely anonymous.
Every bitcoin transaction is recorded on what’s called a ledger, so you can see all the transactions, but you can’t see who sent what to who, again, making it pretty much completely anonymous.
How Does Bitcoin Work?
Bitcoin works sort of like PayPal or Zelle or any other payment app, except it’s not controlled by any one company and it’s encrypted/anonymous.
Most people transfer money from their bank to their Bitcoin wallet and then, from there, spend bitcoins on whatever it is they need them to buy.
All around the world (especially Asia), people are mining bitcoins like gold.
You see, like gold, there’s only a finite amount of Bitcoins that can ever be mined.
21 million to be exact.
It requires massive amounts of power and resources to mine bitcoins so a lot of other developers have created alternative cryptocurrencies which run on the same basic block-chain technology.
Some are better in terms of speed and maybe ease of use, but Bitcoin is the original and has the largest network effect.
Vendors all over are starting to accept it as cash whereas most other cryptocurrencies are unheard of.
Why Do Some Merchants Only Accept Bitcoin?
The reason vendors like us only accept Bitcoin is because large companies like Visa and Mastercard–who run the payment processing world–as well as big banks place a lot of restrictions on what you can sell on payment platforms like Square, Shopify, Stripe, PayPal, etc.
Since Bitcoin cannot be controlled by any single entity, nobody can deny your transaction or shut down your store for selling things that violate their Terms of Service.
Most payment processors won’t touch gray area things like research chemicals with a ten foot stick because they don’t understand the concept of gray areas and, to them, the risk is just too much.
Have fun going bankrupt PayPal!
How To Easily Buy Bitcoins
Okay, so now that we understand what Bitcoin is and how it works, it’s time for the good part.
How to easily buy bitcoins:
These are the most popular exchanges and most of them are pretty simple to use. Read this article for even more exchanges and additional info on each.
- Step 2: Fill out some basic information (name, state, etc.) and sign up for an account.
- Step 3: link your bank account or use a debit/credit card to buy bitcoins.
How To Send Bitcoins Correctly
Where most people tend to give up is when it comes to actually transacting.
It’s true that it can be confusing at first, but it’s actually quite simple.
You see, each bitcoin address is made up of a long string of numbers and letters as well as a QR code which can be scanned by your phone in seconds if you have a bitcoin wallet app on your phone.
When you’re ready to checkout and you’ve already entered your shipping address, you just click “pay with bitcoins” and you’ll be taken to a screen that looks like this:
From this screen, you simply copy and paste the Bitcoin address (long string of numbers and letters) and use the “Send” feature in your Bitcoin wallet to send the correct amount of Bitcoins.
In the example above, it’s 0.02066099 BTC which is equivalent to about $100 USD.
The price of Bitcoin goes up and down daily just like any other currency, so it’s important to send it as soon as possible to avoid sending too little or too much.
Buying Bitcoins: It’s Easy!
Hopefully no that you understand what Bitcoin is and how to actually obtain Bitcoins, you’ll start using it.
This isn’t just some small trend.
This is the future of currencies and digital payments.
Do yourself a favor and sign up for an account right now!