But Why Bitcoins?
Various parties have different reasons to use bitcoins. Some preferer it due to its anonymity meaning they can buy things and services without fear of getting exposed. Other prefer it due to its independence from being tied to any country meaning it is not subject to any form of regulation and proving cheaper international payments. Due to its independence from regulation, it proves a good trading item for those interested in investment.
How to Acquire the Bitcoins
Buying from Exchange Markets
There are several bitcoin broker marketplaces such as Coinbase, Bitfinex which allow the buying and selling of bitcoins
You can find your country exchanges from here. https://www.buybitcoinworldwide.com/
Since bitcoins are a digital form of currency, they can be sent from one party to another party's bitcoin address. This is done through the use of mobile wallets and computers.
This involves a party getting rewarded for completing a puzzle or competition. Bitcoins are created through complex math puzzles that are solved by the parties. The current bitcoins awarded is about 12.5 bitcoins on average of 10 minutes.
The existence of virtual wallets enables the secure storage of the bitcoins. The wallets get stored in the cloud or on a person’s computer. This allows for anonymous sending and receiving of the bitcoins anonymously. Since the bank is virtual with no physical location, it is safer than relatively all other banks in the world. Since it is anonymous and in the cloud, the digital wallet is not insured by the FDIC. Although the virtual wallets have an advantage of not having a physical location, they may suffer from other ways such as hackers breaking into the cloud storage and making away with the bitcoins. The users’ computers are also prone to damages such as virus attacks, electronic damages or even accidental deletion of the bitcoins could leave the user with loss of considerable amount.
By using the physical hardware wallet, like Trezor, Ledger and more, you can make more secure your bitcoins.
The names of both buyers and sellers are hardly or even never revealed at any cost which protects the users’ identity. Those users can get more tax benefits and their transactions amount will not be revealed to either bank or government.
Although the anonymity is preferred, this causes a string of people engaging in drugs, weapon sales, prostitution, human trafficking and other illegal activities.
What about the future of bitcoin?
Bitcoin being the independent currency free of regulation and influence from the government provides reassurance to those willing to make huge profits off the currency through direct trading or even buying and selling of commodities. The same independence issues a major risk for investors willing to buy huge amounts of the bitcoin in the marketplace since the currency is unregulated. The bitcoin users are advised to be on the lookout and diversify their currency to prevent unprecedented loss.