The Reality Of BitCoin

 I am a judgment matchmaking expert that writes often. Bitcoin is a payment system based on a proprietary form of digital token currency. Bitcoin is a bartering system that is an alternative to paying with cash, checks, PayPal, or credit cards. Bitcoin provides a private (or perhaps even a clandestine) way to pay for things. My guess is that unfortunately, some Bitcoin transactions are probably used to purchase illegal services or things.

The advantage of Bitcoin is that it preserves your privacy. Bitcoin has many disadvantages, including:

1) Although Bitcoin has its charms, it is proprietary and is not part of, or backed by, any government. Only a finite number of Bitcoins have been created, which helps make Bitcoins seem to be more valuable than they actually are. By limiting the number of coins made, combined with the hype, have pushed up the price of Bitcoins.

2) Some of Bitcoin's benefits may have questionable value. The advertised benefits include being able to email your friends money, it is related to gold, it offers privacy and stability, etc. The problem is, cash, checks, credit cards, prepaid money cards, money orders, bartering with something (e.g., postage stamps), wire transfers, and PayPal; seem to cover almost every payment need.

3) Buying Bitcoins is not cheap. And except for EBay, buying Bitcoins is not simple or easy; and except for (probably) EBay, some of the Bitcoin vendors seem a bit flaky. For a test, I emailed four Bitcoin exchange vendors, including two somewhat close to me, and none of them responded. When you buy Bitcoins, there are no refunds.

4) In my tests, the software to create a Bitcoin "wallet" on your computer seemed slow and buggy. I tested two different Bitcoin wallet programs, and it seemed as if they would have taken days to finish coordinating things with Bitcoin's remote server network.

5) I would guess that because Bitcoins are totally secure and private, and because they can be used to buy anything anywhere, using them might help get you on the government's radar. Who knows, maybe that person selling unobtainium that you can only buy with Bitcoins, is actually with some police department, looking to bust you.

6) With Bitcoin, the chances of getting ripped off for purchases vastly increases, because almost no seller information is shared with the buyer, such as their name and address.

I might be wrong; and perhaps Bitcoin usage will grow, and more Bitcoins will be issued, and it will become standard on mobile devices, and be accepted by almost every conventional store, for example Amazon and Apple. Right now, the ways to pay for Amazon purchases with Bitcoins are all flaky. Also, when you want to trade Bitcoins for conventional products, the markups you must pay make what one pays to exchange foreign currency at an airport, seem low.

I think I am right, and most people should not mess around with Bitcoin. If one experiments with it, be sure not to spend more than you are willing to lose. Often, paying with Bitcoins, one cannot guarantee the seller, the delivery of anything purchased, or that one day it might be made illegal, or that the bubble of excitement over Bitcoin will one day burst.

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Introduction to Bitcoin

Bitcoin has been in the news the last couple of weeks, but a lot of people are still unaware of them. Could Bitcoin be the future of online currency? This is just one of the questions, frequently asked about Bitcoin.

How Does Bitcoin Work?

Bitcoin is a type of electronic currency (CryptoCurrency) that is autonomous from traditional banking and came into circulation in 2009. According to some of the top online traders, Bitcoin is considered as the best known digital currency that relies on computer networks to solve complex mathematical problems, in order to verify and record the details of each transaction made.

The Bitcoin exchange rate does not depend on the central bank and there is no single authority that governs the supply of CryptoCurrency. However, the Bitcoin price depends on the level of confidence its users have, as the more major companies accept Bitcoin as a method of payment, the more successful Bitcoin will become.

Benefits and Risks of Bitcoin

One of the benefits of Bitcoin is its low inflation risk. Traditional currencies suffer from inflation and they tend to lose their purchasing power each year, as governments continue to use quantative easing to stimulate the economy.

Bitcoin doesn't suffer from low inflation, because Bitcoin mining is limited to just 21 million units. That means the release of new Bitcoins is slowing down and the full amount will be mined out within the next couple of decades. Experts have predicted that the last Bitcoin will be mined by 2050.

Bitcoin has a low risk of collapse unlike traditional currencies that rely on governments. When currencies collapse, it leads to hyperinflation or the wipeout of one's savings in an instant.

Bitcoin exchange rate is not regulated by any government and is a digital currency available worldwide.

Bitcoin is easy to carry. A billion dollars in the Bitcoin can be stored on a memory stick and placed in one's pocket. It is that easy to transport Bitcoins compared to paper money.

One disadvantage of Bitcoin is its untraceable nature, as Governments and other organisations cannot trace the source of your funds and as such can attract some unscrupulous individuals.

How to Make Money with Bitcoin

Unlike other currencies, there are three ways to make money with Bitcoin, saving, trading and mining. Bitcoin can be traded on open markets, which means you can buy Bitcoin low and sell them high.

Volatility of Bitcoin

The value of Bitcoin dropped in recent weeks because of the abrupt stoppage of trading in Mt. Gox, which is the largest Bitcoin exchange in the world. According to unverified sources, trading was stopped due to malleability-related theft that was said to be worth more than 744,000. The incident has affected the confidence of the investors to the virtual currency.

According to Bitcoin chart, the Bitcoin exchange rate went up to more than $1,100 last December. That was when more people became aware about the digital currency, then the incident with Mt. Gox happened and it dropped to around $530.

In 2014, We expect exponential growth in the popularity of bitcoin around the world with both merchants and consumers, Stephen Pair, BitPay's co-founder and CTO, “and anticipate seeing the biggest growth in China, India, Russia and South America.

India has already been cited as the next likely popular market that Bitcoin could move into. Africa could also benefit hugely from using BTC as a currency-of-exchange to get around not having a functioning central bank system or any other country that relies heavily on mobile payments. Bitcoin's expansion in 2014 will be led by Bitcoin ATMs, mobile apps and tools.

World Experiences Bitcoin

More people have accepted the use of Bitcoin and supporters hope that one day, the digital currency will be used by consumers for their online shopping and other electronic deals. Major companies have already accepted payments using the virtual currency. Some of the large firms include Fiverr, TigerDirect and Zynga, among others.

The Future of Bitcoin

Bitcoin works, but critics have said that the digital currency is not ready to be used by the mainstream because of its volatility. They also point to the hacking of the Bitcoin exchange in the past that has resulted in the loss of several millions of dollars.

Supporters of digital currencies have said that there are newer exchanges that are supervised by financial experts and venture capitalists. Experts added that there is still hope for the virtual currency system and the predicted growth is huge.

I hope this article has helped you all gain a much more clear understanding of Bitcoin, the potential, does Bitcoin work and how Bitcoins work. For more articles about Bitcoin, weekly trends, information and updates, subscribe to our blog post.

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