Bitcoin As Currency To Exchange Goods And Services

Bitcoin as currency to exchange goods and services

Bitcoin is a currency, such as the euro or the US dollar, which serves to exchange goods and services. However, unlike other currencies, Bitcoin is an electronic currency that presents new characteristics and stands out for its efficiency, security and ease of exchange. The platform is called Bitcoin and cryptocurrency is the bitcoin (the first letter to refer to the currency will always be lowercase).

Its biggest difference against the rest of coins, it is a decentralized currency, so no one controls it. Bitcoin does not have a central issuer like dollars or euros, cryptocurrency is produced by people and companies around the world dedicating a large amount of resources to mining.

Bitcoin is characterized by being decentralized, that is, it is not supported by any government or central bank. Use a work test system to prevent double expense and achieve consensus among all the nodes that integrate the network by exchanging information about a non -reliable and potentially compromised network. Transactions do not need intermediaries and the protocol is open source.

Bitcoin technology, commonly called blockchain, can facilitate decentralized process management. The processing of micropagos through lightning or time sealing through Opentimemps are relevant Bitcoin applications to solve problems in various business fields.

Buy or get bitcoin

There are several pages where you can buy bitcoins.

They are platforms that have a large user base and in which you can pay with your credit card or through bank transfer:

• Coinbase: offers a 3.5%commission, but it is one of the most popular sites.
• Kraken: The commission is much lower, between 0.16 and 0.26%.
• Localbitcoins: It is intended for the purchase from person to person (P2P).

The process is fairly simple. To use them, you must first register with your personal data and create your account. Once confirmed and verified – in some cases this last step can take a bit – you must attach the card with which you want to pay and press the ‘Buy’ option.

Bitcoin as a good investment

Bitcoin is a digital currency, which emerged after a financial crisis and is not administered by any bank or government. It allows people to avoid traditional banks and payment methods for products or services. An idea that captured the attention of many investors, mainly because its price at increased more than 900% in 2017. Bitcoin must be stored online using a digital wallet, and can only be bought or sold by transactions on sites such as Bitstamp, Kraken or Bithumb.

But while Bitcoin is gaining power, it increases the fear that a potential failure is forming, since Bitcoin has begun less as a currency and more as a value to store.

Finance experts compare Bitcoin with previous failures, due to its extreme volatility. The data we have to date back to 2013, indicate that Bitcoin currently is worth six times more than its price in 2013. During 2017 the volatility of the currency is very clear, only during the last week the value of Bitcoin rose to the USD 11,329, then fell to the USD 9,146 to recover at a value of 10,700 units.

A restaurant in London known as "Silicon Rondabout" uses Bitcoin as a currency to process its payments. The restaurant owner comments that they do not run the risk of the value of the currency to collapse, since they make the payments through an application that automatically converts Bitcoin payments into pounds sterling. What generates interest to the owner are the low costs in payments processing, in difference of exorbitant rates charged by credit card companies.

The debate about whether Bitcoin will prosper as an investment in the future is in doubt and there are opinions divided among finance experts, however, Bitcoin is gaining great interest on the part of entrepreneurs and investors, who are finding good uses for this newDigital currency type.

Outstanding aspects

Degree of acceptance – Many people do not know Bitcoin yet. Every day, more businesses accept bitcoin to take advantage of their advantages, but the list is still small and needs to grow so that they can benefit from their network effect.

Volatility – The total value of bitcoins in circulation and the business number using bitcoin are very small compared to what can become. Therefore, relatively small events, exchanges or business activities significantly affect the price. In theory, this volatility decreases according to the market and technology Bitcoin mature. Never before has a nascent currency been seen, so it is very difficult (and exciting) imagine what will happen.

Ongoing development – Bitcoin software is still in the beta phase with many incomplete development characteristics. New tools, characteristics and services are being developed to make bitcoin safer and more accessible to the masses. Many are not yet ready for the public. Most business with bitcoin are new and do not offer security. In general, Bitcoin is still in the process of maturation.

Much of Bitcoin trust comes from the fact that it does not require trust. Bitcoin is completely open and decentralized source. This means that anyone has access to the complete code at any time. Any developer in the world can verify how it works. All transactions and bitcoins created during their existence can be consulted clearly in real time by any person. All payments can be made without depending on third parties and the entire system is protected by user -reviewed cryptographic algorithms, similar to what is used in electronic banking. No organization or individual can control Bitcoin and the network remains safe even if you cannot trust all its users.

Future plans are for this cryptocurrency

There are currently different opinion currents about the future of Bitcóin.

For some detractor currents there is a very high risk of bitcoin collapse that, according to many economists, has a real value of zero. Bitcóin is today a drift mine and almost all financial regulators warn against it. As it is a system lacking any support, neither of governments either of economic or financial entity, in the face of that eventuality its holders will be defenseless.

Other factors that are difficult to evaluate and that can condition or prevent the viability of bitcóin would be the following, all in the midst of an important crisis of debt and fiduciary monetary mass.

• Regulation or restrictions of access to the Bitcoin network by governments.
• Acceptance in electronic commerce and stores.
• Availability, popularity and effectiveness of other present or future payment methods.
• Botnets attacks or other agents, getting more than fifty percent of the mining calculation power.
• Extensions and new versions of the protocol that give rise to critical vulnerabilities.
• Claims for intellectual property rights.
• Adoption of another type of digital currency that competes with Bitcoin.

For others, Bitcóin has a promising future as an active with all the properties that a good of change can have: account unit, value reserve and currency of current use. There are many theories about the exponential advance of bitcóin as a tractor element of the new economy and value of value.

Bitcoin has suffered different threats and attacks from media, political, technical and economic fronts. Leaving all of them and imposing itself as a reference cryptocurrency in the nascent business cluster of the crypto economy.

Technically, Bitcoin is in permanent evolution with a large community of developers and betas, some of which:

• Payment channels (micropagos) or lightning network.
• Sidechains or value layers added with smart contracts with RSK.
• Improvements in anonymity aspects.
• Advances in ease of use for users.

conclusion

Bitcoin is the best known of digital currencies. Enough explanation give us the numbers: from January to date, Bitcoin has risen more than 650%. One of its main characteristics is that it is a means of payment based on a block chain technological system.

In addition, Bitcoin allows users to carry out their transactions, avoiding the banking and financial system. In this way, their control is carried out through the users themselves, says global investor. And having the digital currency or investing in it is relatively simple.