Economics Book Review – The rise of money, a financial history of the world, Niall Ferguson

Cryptocurrency is a digital asset that is mainly used as a transaction medium to secure financial transactions, control the creation of additional assets and verify any asset transfers with the help of strong cryptographic technology. Also known as digital currency or a form of virtual currency. Unlike central banking systems, it is a decentralized control and financial transaction system that works through blockchain, which is mainly used for financial transactions.

The first decentralized virtual currency developed in 2009 is Bitcoin, also known as virtual currency, which works independently without the help of any central bank or administrator. Since then, about 4,000 altcoins have been created from different variants of bitcoin. Bitcoin is considered as a peer-to-peer electronic money system where users perform direct transactions without any intermediaries.

A blockchain is a data file consisting of multiple blocks that store records of all previous bitcoin transactions and store the creation of new ones. The normal average time between each block is about 10 minutes. The most common use of Bitcoin is supported by external software called Bitcoin Wallet. You can easily store, receive and manage transactions of bitcoin units using this software. To carry out transactions using bitcoin, you need to have an account at any bitcoin exchange in the world and transfer fiat currency to that account. Thus, the account holder can carry out future transactions using these funds. Apart from bitcoin, some of the other sources of cryptocurrency are petro, which is mainly used for oil and mineral resources.

There are some pros and cons to using digital currency. The main advantages of using virtual currency are as follows:

• Provides a fast transparency layer:-

Bitcoin usually works with the help of a ledger called Blockchain, which records and tracks every transaction. Once a transaction is made and recorded in this ledger, it is considered static. These transactions can be further audited at any time in the future and therefore additionally ensure security and privacy regarding all transactions made through a particular account.

• Fast processing and portable usage:-

With the help of a memory drive, billions of dollars worth of bitcoins can easily be moved from one place to another without detection. Using this bitcoin technology, any type of transactions can be done without the involvement of a third party. This will result in easy and fast transaction without any third party permission,

• Low operating costs include:-

The transaction costs associated with exchanging these digital currencies are very low, making it more affordable than real currency for people around the world. Thus, the cost of any operation performed is very low, which becomes an advantageous feature for the population when performing any operation.

• Fights and eradicates poverty:-

Often the banking systems and financial institutions do not provide help or assistance to the backward classes especially in the rural areas. Bitcoin serves as an alternative where it extends its powerful financial services to anyone with access to the internet. It often acts as a support for the poor and downtrodden classes and in most cases no alternative is given.

When new or latest technology comes, there are also some negative factors associated with its use:-

• Ignorance and mistrust of the population:-

Due to the lack of knowledge about digital currency, people are more likely to distrust its widespread use. Hence, there are very few business systems that accept these sources of cryptocurrency, thus limiting the business systems that prefer to use virtual currency in their day-to-day operations.

• Transactions not tracked:-

Since Bitcoin transactions are untraceable, it provides space for criminal activities. In such cases, drug dealers and honest people use such virtual currency so that their illegal activities are not easily detected.

• Nature of Volatility and Uncertainty:-

Cryptocurrency is sometimes volatile and continues to change frequently on a large scale. Sometimes people make a lot of money when the market rates of these virtual currencies rise and sometimes they face a huge loss when the prices fall.

Cryptocurrency is an innovative yet ambitious concept that could potentially disrupt the entire financial market. True, this digital currency caught the attention of the world in a short period of time. Every new technology that appears in the market always has advantages and disadvantages. To make the best use of it, you need to look at both sides before making any decisions.

How to Buy Bitcoin – Step One

The best way to learn about bitcoin, is to jump in and get a few in your “pocket” to get a feel for how they work.

Despite the hype about how difficult and dangerous it can be, getting bitcoins is a lot easier and safer than you might think. In a lot of ways, it is probably easier than opening an account at a traditional bank. And, given what has been happening in the banking system, it is probably safer too.

There are a few things to learn: getting and using a software wallet, learning how to send and receive money, learning how to buy bitcoin from a person or an exchange.


Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of the exchanges which will host wallet for you. And, although I think you are going to want to have one or more exchange wallets eventually, you should start with one on your own computer both to get a better feel for bitcoin and because the exchanges are still experimental themselves. When we get to that stage of the discussion, I will be advising that you get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to keep your money safe.

What is a wallet?

It is a way to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It can be run on your desktop computer, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things like thumb drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.

*The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.

What do you need to know about having a bitcoin wallet on your computer?

Below you can download the original bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where you can copy and paste a number like this from a person you want to send money to and off it will go directly into that person’s wallet. You can even create a QR code which will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to give these out – the address and QR code are both for my donations page. Feel free to donate!

NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number across the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be part of that system, checking and supporting the network. This wallet serves as your personal wallet and also as a support for that system. Therefore, be aware that it will take up 8-9 gigabytes of your computer’s memory. After you install the wallet, it will take as much as a day for the wallet to sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it’s a good idea.

Bitcoin Qt

  • The original wallet.
  • This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet.
  • Outside of the time it takes to sync, this is a very easy to use option.
  • Search for Bitcoin Qt wallet download to find their site.


  • Runs on top of Bitcoi Qt, so it has all of the same syncing requirements.
  • Armory allows you to back up, encrypt, and the ability to store your bitcoins off line.
  • Search for Bitcoin Armory Wallet to find their site.

If you don’t want to have that much memory used or don’t want to wait for your wallet to sync, there are good wallets that do not make you sync the entire history of bitcocin:


  • A lightweight wallet that syncs quickly. This is very good for new users.
  • Search for Bitcoin Multibit Wallet to find their site.


  • In addition to being quick and light, this wallet allows you to recover lost data using a passcode.
  • Search for Bitcoin Electum Wallet to find their site.

After you get the wallet set up, take a few minutes clicking around. Things to look for:

o There will be a page that shows you how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).

o There will be an area showing what your recent transactions are.

o There will be an area where you can create an address and a QR code (like the one I have above). You don’t need the QR code if you don’t want it, but if you run a business and you want to accept bitcoin, then all you’ll need to do to accept payment is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have a separately labeled address from each one of your payees.

o There will be an area with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet.

There will be other options and features, but to start out with, these are the items that you should know about.

Getting Your First Bitcoins

Now that you have a wallet, you will, of course, want to test them out.

The very first place to go is

This is a website that gives out small amounts of bitcoin for the purpose of getting people used to using them. The original version of this was run by the lead developer of bitcoin, Gavin Andreson. That site has since closed and this site operates by sending out one or two advertisements a month. You agree to receive those messages by requesting the bitcoins. Copy and paste your new bitcoin address and enter a phone number to which you can receive an SMS. They send out an SMS to be sure that people are not continuously coming back for more since it costs nothing to create a bitcoin address. They will also send out once or twice a month advertisement to support their operation. The amount they send it trivial: 0.0015 BTC (or 1.5 mBTC). However, they process almost immediately and you can check to see that your address and wallet are working. It is also quite a feeling to get that portion of a bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you use them. I simply think they are a good way to get your feet wet).

Congratulations! You have just entered the bitcoin economy.

To get your feet a little wetter, you can go panning for gold. There are a number of services and websites out there that will pay you in bitcoin to do things like go to certain websites, fill out online surveys, or watch sponsored videos. These are harmless, and you can earn a few extra bitcoins this way, but it is important to remember that these are businesses that get paid when people click on the links on their sites. They are essentially kicking back a portion of what they get paid to you. There is nothing illegal, or even immoral about this (you might like what you see and make a purchase!), but they are frequently flashy and may not be completely straightforward. All the ones that I have tried (particularly have paid out as advertised. It is interesting to experiment with these, but even with the likely rise in the value of bitcoin, you won’t become a millionaire doing this. So, unless you are an advertisement junkie, I would recommend you move on. If you would like to try, simply Google “free bitcoins” or something along those lines and you will find numerous sites.

Buying Bitcoin Hand-to-Hand

Finally, this is going to be the real test of bitcoin. Can people easily trade them back and forth? If this can’t happen, then there can’t really be a bitcoin economy because retailers won’t be able to use it. If retailers can’t use it, what earthly good is it? Fortunately, this is not really a problem. iPhone is a bit of a hold out, but many smartphones have apps (mobile wallets) that will read QR codes and allow you to send bitcoin to whomever you want. You can also display a QR code of your address, or even carry a card in your wallet with your QR code to let people send bitcoin to you. Depending on what kind of wallet you have, you can then check to see if the bitcoins have been received.

A couple of things to note:

  • When you set up your wallet, if you click around a bit, you will see an option to pay a fee to speed transactions. This money becomes available to a bitcoin miner as he/she/they process bitcoin information. The miners doing the work of creating blocks of information keeps the system up to date and secure. The fee is an incentive to the miner to be sure to include your information in the next information block and therefore “verify” it. In the short term, miners are making most of their money by mining new coins (check the section on What Are Bitcoins for more information about this). In the long term, as it gets harder to find new coins, and as the economy increases, the fees will be an incentive for miners to keep creating more blocks and keep the economy going. Your wallet should be set to pay 0 fees as a default, but if you want, you can add a fee to prioritize your transactions. You are under no obligation to pay a fee, and many organizations that process many small transactions (like the ones that pan for gold described above) produce enough fees to keep the miners happy.
  • In clicking around your wallet, on the transactions page or linked to specific transactions, you will see a note about confirmations. When you make a transaction, that information is sent out into the network and the network will send back a confirmation that there is no double entry for that bitcoin. It is smart to wait until you get several confirmations before walking away from someone who has paid you. It is actually not very easy to scam someone hand-to-hand like this, and it is not very cost-effective for the criminal, but it can be done.

Where can you buy bitcoin like this?

  • You may have a bitcoin Meetup in your area.
  • You can check out to find people near you who are interested in buying or selling.
  • Some are trying to start up local street exchanges across the world. These are called Buttonwoods after the first street exchange established on Wall Street in 1792 under a buttonwood tree. See if there is one, or start one, in your area.
  • See if you have any friends who would like to try bitcoins out. Actually, the more people who start using bitcoin, the larger and more successful it will be come. So please tell two friends!

Some people ask if it is possible to buy physical bitcoins. The answer to this is both a yes and a no. Bitcoin, by its very nature, is a digital currency and has no physical form. However, there are a couple of ways that you can practically hold a bitcoin in your hands:

  • Cascascius Coins: These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector’s items.
  • Paper Wallets: A paper wallet just means that rather than keeping the information for your bitcoin stored in a digital wallet, you print the key information off along with a private key and keep it safe in a safe, in a drawer, or in your mattress (if you like). This is highly recommended and cost effective system for keeping your bitcoin safe. Keep in mind, though, that someone could steal them or if your house burns, they will go with the house and there will be no way to get them back. Really, no different than cash. Also, as with Casascius Coins, they will not really be good for spending until you put them back into the computer.

* There is software to make printing your paper wallets easier. is one of the best and includes a good tutorial about how to use them.

* The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you ship coins to the wallet any time you like.

* The sealed part of the wallet will have the private key without which you cannot access the coins. Therefore, only put as many coins on the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.

* People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. gives a lot of good advice about how to print your wallets securely.

Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling bitcoin this way is just way too risky.

How Not to Buy Bitcoin

In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning.

A short history lesson: When people first started setting up actual business based on bitcoin, they used all of the tools available to any merchant. They sold by credit card and PayPal. The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of bitcoin and then sooner or later requesting a chargeback. And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.

This was a big problem for the currency: How to move money between buyers and seller? Some business emerged that would credit you with bitcoin if you wired them money. Very often these businesses would give addresses in Albania, Poland, or Russia. The fact is that many of these did work and there are a lot of stories on the forums of people who bought bitcoins this way. But it took a lot of time and in the meantime the buyer just had to bite his or her fingernails wondering if they would get their bitcoins or kiss their investment goodbye.

I expect that as bitcoin becomes more acceptable and valuable, we are going to see a version of the Nigerian Prince scam. So the warning is this: we now have exchanges and other businesses that allow for moving money easily onto and off of exchanges. Never wire money for bitcoin. It was a short-lived, and well-forgotten, moment in the history of bitcoin.

Next, I will be talking about how to buy from a bitcoin exchange and give a review of the some of the best known exchanges.

Bitcoin: What is it and is it right for your business?

So, what is Bitcoin?

It is not an actual coin, but a “cryptocurrency”, a form of digital payment produced (“mined”) by many people around the world. It enables instant peer-to-peer transactions worldwide for free or at very low cost.

Bitcoin was invented after decades of cryptographic research by software developer Satoshi Nakamoto (believed to be a pseudonym), who designed the algorithm and introduced it in 2009. His true identity remains a mystery.

This currency is not backed by a tangible commodity (such as gold or silver); bitcoins are traded online, making them a commodity in themselves.

Bitcoin is an open source product, available to anyone who is a user. All you need to get started is an email address, Internet access, and money.

Where does it come from?

Bitcoin is mined on a distributed computer network of users running special software; the network solves certain mathematical proofs and looks for a specific sequence of data (a “block”) that creates a specific pattern when the BTC algorithm is applied to it. A match produces a bitcoin. It is complicated and takes time and energy.

Only 21 million bitcoins will be mined (about 11 million are currently in circulation). Mathematical problems solved by networked computers make it increasingly difficult to control mining operations and supplies.

This network also authenticates all transactions through cryptography.

How does Bitcoin work?

Internet users transfer digital assets (bits) to each other on the network. No online banking; rather, Bitcoin is described as a distributed ledger on the Internet. Users buy Bitcoin with cash or by selling a product or service for Bitcoin. Bitcoin wallets store and use this digital currency. Users can sell their Bitcoins from this virtual ledger by trading them to someone else who wants them. Anyone can do it anywhere in the world.

There are smartphone apps for conducting mobile Bitcoin transactions and Bitcoin exchanges are flooding the internet.

How is Bitcoin valued?

Bitcoin is not held or controlled by a financial institution; completely decentralized. Unlike real world money, it cannot be devalued by governments or banks.

Instead, Bitcoin’s value lies simply in its acceptance as a form of payment among users and its limited supply. Its global currency values ​​fluctuate according to supply and demand and market speculation; as more people create wallets and hold and spend bitcoins, and more businesses accept it, the value of Bitcoin will rise. Banks are now trying to value Bitcoin, and some investment sites are predicting that Bitcoin will be worth several thousand dollars in 2014.

What are its benefits?

There are advantages for consumers and merchants who want to use this payment option.

1. Fast transactions – Bitcoin is transferred instantly over the internet.

2. No fees/low fees — Unlike credit cards, Bitcoin can be used for free or with very low fees. Without a centralized entity like a middle man, no permissions (and fees) are required. This improves the profit margin sales.

3. Eliminates the risk of fraud – Only the owner of the Bitcoin can send the payment to the intended recipient, who is the only person who can receive it. The network knows that the transfer has taken place and that transactions have been confirmed; they cannot be challenged or withdrawn. This is huge for online merchants or businesses who pay the high cost of credit card chargebacks, who are often subject to credit card processors’ assessments of whether a transaction is fraudulent.

4. Data is secure — As we’ve seen in recent attacks on national retailers’ payment processing systems, the Internet isn’t always a safe place for personal information. With Bitcoin, users don’t give up their personal information.

a. They have two keys – a public key that serves as a bitcoin address and a private key that contains private information.

b. Transactions are digitally “signed” by combining public and private keys; a mathematical function is applied and a certificate is generated proving that the user initiated the transaction. Digital signatures are unique for each transaction and cannot be reused.

c. The merchant/buyer never sees your private information (name, number, physical address), so it is somewhat anonymous, but traceable (down to the bitcoin address in the public key).

5. Convenient payment system — Merchants can use Bitcoin entirely as a payment system; Since Bitcoin can be converted into dollars, they do not have to hold any Bitcoin currency. Consumers or merchants can trade Bitcoin and other currencies at any time.

6. International payments – Bitcoin is used worldwide; E-commerce merchants and service providers can easily accept international payments, which opens up new potential markets for them.

7. Easy to Track — The network tracks and permanently records every transaction on the Bitcoin block chain (database). In the event of possible illegality, it is easier for law enforcement officers to track these transactions.

8. Micropayments are possible – Bitcoins can be divided into hundred millionths, making small payments of a dollar or less a free or nearly free transaction. This can be a real boon for convenience stores, coffee shops, and subscription-based websites (videos, publications).

Still a little confused? Below are some examples of operations:

Bitcoin in a retail environment

During checkout, the payer uses a smartphone app to scan a QR code that contains all the transaction information needed to transfer bitcoin to the retailer. Tapping the “Confirm” button completes the transaction. If a user doesn’t have any Bitcoins, the network converts the dollars in their account into digital currency.

The retailer could convert that Bitcoin into dollars if they wanted, there were no or very low processing fees (instead of 2-3 percent), no hackers could steal consumers’ personal information, and there was no risk of fraud. Very smooth.

Bitcoins in Hospitality

Hotels can accept Bitcoin for room and board payments for guests who want to pay with Bitcoin using their mobile wallets, or go from a computer to a website to pay for an online reservation. A third-party BTC merchant processor can help manage the transactions it clears over the Bitcoin network. These processing clients are installed on tablets at the front desk of businesses or restaurants for users with BTC smartphone apps. (These payment processors are also available for desktop computers, retail POS systems, and integrated into foodservice POS systems.) No credit cards or money need change hands.

These cashless transactions are fast and a processor can convert bitcoins into currency and make a daily direct deposit into the business’s bank account. In January 2014, it was announced that two Las Vegas hotel-casinos would accept Bitcoin payments at their front desk, restaurants and gift shop.

Sounds good – but what’s the catch?

Business owners must consider accessibility, security and cost.

• Relatively few ordinary consumers and merchants currently use or understand Bitcoin. However, adoption is increasing globally and tools and technologies are being developed to facilitate participation.

• This is the Internet, so hackers are a threat to exchanges. The Economist reports that in September 2013, the Bitcoin exchange was hacked and $250,000 worth of bitcoins were stolen from users’ online wallets. Bitcoins can be stolen just like any other currency, so vigilant network, server and database security is paramount.

• Users should carefully protect their bitcoin wallets with their private keys. Safe backups or prints are very important.

• Bitcoin is not regulated or insured by the US government, so there is no insurance for your account if the exchange goes out of business or is robbed by hackers.

• Bitcoins are relatively expensive. Current prices and sales prices are available on online exchanges.

Virtual currency is not yet universal, but it is gaining market awareness and acceptance. A business may decide to try Bitcoin for customer convenience, to save on credit card and bank fees, or to see if it helps with sales and profitability.

Thinking of accepting Bitcoin? Are you already using it? Share your thoughts and experiences with us.

Bitcoin and Binary Options Trading

Binary options have become increasingly popular over the past 2 years. This type of trading is desirable among new traders because they don’t need to actually buy anything, they just need to predict whether the asset will move up or down within a specified time frame. These trades take place over short periods of time (30 seconds, 1 minute, 5 minutes) but can last for months. If a trader predicts wrong, they will surely lose their money. If the trader was right in their prediction, they will get paid 80-85% depending on the broker.

Binary options are sometimes referred to as “all or nothing,” “digital options,” or “fixed return options” (FROs) traded on the American Stock Exchange.

Bitcoin (BTC) is a digital currency that is created and stored electronically and is not controlled by anyone. “Bitcoin is an online payment system invented by Satoshi Nakamoto, who published his invention in 2008 and released it as open source software in 2009. The system is peer-to-peer; users can make transactions directly without the need for an intermediary. recorded in a publicly distributed ledger. The ledger uses its own unit of account, as well as the name bitcoin. The system operates without a central repository or single administrator, which has led the US Treasury to divide it into several categories. decentralized virtual currency. Bitcoin is often called the first cryptocurrency. .. “

Bitcoin as a currency in binary options trading

Bitcoin is currently a widely used currency and many trading platforms accept it as a payment method for their customers’ trading deposits. There are many benefits to using Bitcoin as a currency. The first benefit is that “the cost of the transaction is the lowest of all forms of online payment. This is the reason Bitcoin was created in the first place to reduce the cost of online transaction. Because there is no central authority, there are no service fees when handling, receiving or transmitting Bitcoin.” Another reason why traders use Bitcoin as a currency is that Bitcoin itself can be exchanged and they can earn extra Bitcoins that way.

“By recording all trades in Bitcoin, a trader can protect himself from the volatility of this cryptocurrency, while at the same time earning more from his trading profits.”

Bitcoin as a commodity in binary options trading

With the recent popularity of Bitcoin and its acceptance as a currency, many binary options platforms have started using Bitcoin as one of the currencies to trade. as such an asset. Stockbrokers see value in trading BTC against hard currencies, mainly the US Dollar.

There are 2 main types of Bitcoin binary options platforms today:

  • First generation brokers – binary options platforms that allow you to trade with Bitcoin

  • Second generation brokers – platforms that offer both Bitcoin financing and Bitcoin trading

First generation brokers – Brokers offering Bitcoin trading:

  • Coinut – only Bitcoin options exchange platform; programmed as a solid and Linux operating system distributed on

  • BTClevels – Bitcoin binary options trading platform; hassle free with or without registration

  • 24 Options – one of the first brokers to actively offer BTC is

Second generation brokers – Brokers offering Bitcoin financing and trading:

  • Traderush binary platform – accepts BTC deposits

  • Nadex trading platform accepts -BTC funding and allows BTC trading; offers limited risk, short-term trading, transparency and a fully regulated market

  • Satoshi Option trading platform – accepts BTC funding and allows BTC trading; does not require account registration, nor personal information. Payments are instant and the service can be accessed from anywhere in the world at

  • The BTCOracle platform – the only Bitcoin platform – allows funding and trading of BTC, offering multiple wallet options and complete transparency

  • Bitstamp platform – As above, BTC only platform – allows BTC trading and funding, but requires access to

  • Bitcoin Wisdom – Allows you to trade 3 digital currencies, Bitcoins, Litecoins, Altcoins against other real currencies and requires login to

  • Beast Options – allows you to fund BTC and trade Bitcoins and Litecoins; guarantees fair pricing regardless of market fluctuations

When choosing a Bitcoin broker, it is important to check their terms and conditions, paying particular attention to whether their Bitcoin Assets are stored in “Deep Cold Storage”. This means that bitcoins are secured and stored offline, where they are not vulnerable to hackers.

What is Bitcoin?

Bitcoins have become a very popular and popular form of currency over time. However, what exactly is Bitcoin? The following article will review the ins and outs of this currency that came out of nowhere and spread like wildfire. What makes it different from regular currencies?

Bitcoin is a digital currency, it is not printed and never will be. They are held electronically and no one controls it. They are produced by the people and businesses that created the first form of money known as cryptocurrency. While normal currencies appear in the real world, Bitcoin flows through billions of computers around the world. From bitcoin in the US to bitcoin in India, it has become a global currency. However, its biggest difference from other currencies is that it is decentralized. This means that no specific company or bank owns it.

Who created it?

Satoshi Nakamoto, a software developer, proposed and created Bitcoin. He saw this as a chance to have a new currency on the market free from central authority.

Who prints?

As mentioned earlier, the simple answer is no one. Bitcoin is not a printed currency, it is digital. You can even make online transactions using Bitcoins. So you can’t withdraw unlimited bitcoins? Absolutely not, Bitcoin was never designed to “mine” the world over 21 million bitcoins at once. Although they can be broken down into smaller parts. One hundred millionth of a Bitcoin is called a “Satoshi” in honor of its creator.

What is Bitcoin based on?

Mainly in appearance and for traditional use, Bitcoin is based on gold and silver. But the truth is that Bitcoin is actually based on pure mathematics. Since it’s open source, there’s nothing to hide. So anyone can check it out to see if it works as they claim.

What are the features of Bitcoin?

1. As mentioned earlier, it is decentralized. It is not owned by any specific company or bank. Each program that mines Bitcoins forms a network and they work together. The theory was, and it worked, that if a network crashed, the money would still flow.

2. Easy to install. Unlike big banks, you can create a Bitcoin account in seconds.

3. It’s anonymous, at least the part where your Bitcoin addresses are not associated with any personal information.

4. It’s completely transparent, all transactions using bitcoins are displayed on a big chart known as the blockchain, but no one knows it’s you because no name is attached to it.

5. Transaction fees are small and compared to a bank’s fees, the rare and small fees Bitcoin costs are close to nothing. It’s fast, very fast. Money will arrive wherever you send it, usually within minutes of processing.g. It is irrefutable, meaning that once you send your Bitcoins, they are gone forever.

Bitcoin has changed the world and the way we look at money. Many people wonder if it is possible to live off bitcoins. Some have even attempted it. However, Bitcoin is currently part of our economy, a unique type of currency, and it’s not going away anytime soon.

Multilayered Cryptocurrency

Questions have arisen about whether Bitcoin will become a multi-layered system. Well, the answer is yes. This article attempts to describe the different layers that bitcoin sits on. It’s all yours!

Have you heard people refer to Bitcoin as digital gold? Clearly, cryptocurrency is rapidly gaining popularity and acceptance in the cryptocurrency world. The value of the coin is predicted to rise further. However, it is also noted that the coin can gain or lose 50% of its value overnight. This leads to speculation among investors, but the coin is still “digital gold”. And to the question of whether or not bitcoin is a multi-layered system, you need to know that bitcoin exists in two main layers. These are mining and semantic layers.

Mining layer

This is the layer from which the coin is created. Along with bitcoins, ether is also created in this layer. Once coins are created, secure blocks of bitcoins are transferred to the ledger. Currency production is carried out here. It should be noted that the currency is obtained from transactions in bitcoin blocks. Blocks are known as transaction fees. Currency can also be generated from the network itself or you can say “out of the air”. The main advantage of creating currency from the network is that it gives incentives to miners.

Semantic layer

It provides a very important platform. The semantic layer is the layer where bitcoins are used as a means of payment. It also provides a platform for bitcoins to be used as a store of value. Layers seem pretty important, don’t they? Holders of bitcoin currency sign valid transactions that indicate the initiation of the transfer of bitcoins between nodes at the semantic level. Transfer can also be possible through the creation of smart contracts. Smart contracts transfer coins between different accounts.

Lightning network

You probably haven’t heard of the lightning network. This is the latest invention introduced by the bitcoin community. This layer will be capable of running on top of bitcoin. With this invention will come an application layer on top of bitcoin. It will be very exciting. The most interesting thing is that its value can also be used to pay. This will be possible by carrying its value among people. With the invention of the lightning network, bitcoin will become both a transport layer and an application layer.

Today, bitcoin is estimated to be worth around $9 billion. Bitcoin is also known to be a decentralized cryptocurrency. This means that it works without the control of the bank or administrator. Bitcoin is definitely taking the crypto world by storm.

In addition, the technology used during the mining of bitcoin is called blockchain technology. It works by allowing digital information to be distributed, not copied. Cryptocurrencies are a really interesting topic and in the near future bitcoins may surpass our major currencies.

A Beginner’s Guide to Owning Bitcoin Cryptocurrency

Bitcoin Cryptocurrency is buzzing all over the world whether you are on the internet or any media. This is one of the coolest and craziest things to come out in just the last few years. More importantly, you can earn awesome income by trading bitcoins or keep it for a long time.

You can hear about Stocks, Commodities, Forex and now a new currency called Bitcoin trading that has a huge impact on our lives. In this beginner’s guide to Bitcoin cryptocurrency, you will learn the ABC’s of Bitcoin.

About Bitcoin Cryptocurrency

The origin of Bitcoin is still unknown, but in October 2008, an article was published from Japan under the pseudonym Satoshi Nakamoto. His identity is still unknown, and as of September 2017, he is believed to have about one million bitcoins worth more than $6 billion.

Bitcoin is a digital currency popularly known as cryptocurrency and is free from any geographical boundaries. It is not regulated by any government and all you need is an internet connection. As a beginner, Bitcoin technology can confuse you and it can be a bit difficult to know about it. However, I will help you dig it deeper and how you can easily make your first Bitcoin trade.

Bitcoin Cryptocurrency works on blockchain technology, which is a digital public ledger that is shared by everyone in the world. Whenever you trade any Bitcoin, you can find your transactions here and anyone can use the ledger to verify it. The transaction will be completely transparent and verified by the blockchain. Bitcoin and other cryptocurrencies are parts of the blockchain, an awesome technology that only works on the internet.

Basic terms related to Bitcoin cryptocurrency

Before you get ready to own your first Bitcoin, it is better to know the basic terms related to bitcoins. It is also called as BTC which is a part of bitcoin and 1 bitcoin is equal to 1 Million bits. With the emergence of Bitcoins, some other alternative cryptocurrencies have also developed. They are popularly called Altcoins and include Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Monero (XMR) and many others.

XBT and BTC are the same thing and are commonly abbreviated to bitcoin. Mining is another commonly used term and is actually a process done by computer hardware for Bitcoin networks.

Things you can do with Bitcoin

You will be able to trade, transact, receive and store bitcoins. You can send it to your friends, send a friend request and save it in your digital wallet. Even now you can add mobile/DTH directly by paying through bitcoin.

Transaction cost is low compared to PayPal, Credit cards and other online intermediaries. In addition, it also protects your privacy that can be leaked online while using credit cards. It is extremely secure and no one can intercept or steal the coins. Due to its transparency in the system, it is also impossible to manipulate thanks to the shared public ledger. You can check the transaction anywhere and anytime.

Since the total production of bitcoins will be limited to only 21 million, the demand is likely to increase. Japan has already legalized it and soon other countries may follow suit and the price may increase even more.

In the coming days I will give more details about Bitcoins where you will learn cool things about bitcoin trading. You can comment your thoughts and ask anything related to bitcoins.

If you found this beginners guide to Bitcoin Cryptocurrency useful, please share and like it on social networks.

4 advantages you can enjoy if you invest in Bitcoin

Bitcoin is a type of digital currency based on a peer-to-peer network. It was introduced in 2009. What distinguishes this type of currency from the common currency in use is that it is decentralized and does not depend on any bank or government authority. However, Bitcoin offers many advantages. For example, it has lower transaction fees than conventional payment mechanisms. Let’s take a look at 4 benefits you can get if you invest in Bitcoin. Read on to know more.

Multiple Uses

Initially, Bitcoin users used the currency to conduct routine financial transactions without paying many fees. Since then, the currency has been used for many other purposes.

In fact, Bitcoin uses blockchain technology to facilitate digital transactions. Therefore, all transactions are first checked and approved. Moreover, all transactions can be viewed online through the database available on the blockchain website.

In addition, Bitcoins can be used for land ownership, insurance claims, etc. can be used to digitally trade securities. However, it should be noted that these uses are still under development. Therefore, they have not yet become part of the mainstream.

However, the currency has been quite successful. Therefore, it revolutionized the entire industry. According to many researchers, the value of Bitcoin will continue to increase in the future. Therefore, investing in BTC is a great idea if you want to get a great return on your investment.

Expected Earnings

First of all, it should be noted that the potential gain associated with investing in Bitcoin is higher than the potential loss. According to many cryptocurrency analysis, bitcoin will become an international currency. In other words, the chance of losing money is lower than the chance of making a significant profit. So it’s a somewhat safe investment.

If this happens, it will boost global trade. As a result, the value of Bitcoin will increase by 20,000 times its current value. But this can only happen if this currency is recognized as a valid currency for domestic and international trade.

Interest in your investment

Since Bitcoin is treated as a type of commodity money, you can invest your Bitcoin just like you would invest in any business using traditional fiat money. So, you can also earn interest on your invested money. Additionally, you can sell your Bitcoins once they have gained value.

Easy Access

The interesting thing is that you don’t need to hold your Bitcoins for a long time to get some profit. Based on how much money people transfer to the Bitcoin network, you can also make a profit in a short period of time.

Long story short, investing in Bitcoin in 2019 is a great idea. Just make sure you keep up with the latest developments to take advantage of the opportunities available.

5 advantages of Bitcoins that you did not know

Most people have heard of the term Bitcoin but don’t have a clear idea of ​​what it actually is. Simply put, Bitcoin is a decentralized, peer-to-peer, digital currency system designed to allow online users to process transactions through a digital unit of exchange known as Bitcoins. In other words, it is a virtual currency.

The Bitcoin system was created in 2009 by an undisclosed programmer(s). Since then, Bitcoin has attracted much attention and controversy as an alternative to the US dollar, the Euro, and commodity currencies such as gold and silver.

Bitcoin uses a private computer network connected to a shared application to conduct transactions and process payments. The creation of Bitcoins is based on increasingly complex mathematical algorithms, and its purchase is carried out with standard national monetary currencies. Bitcoin users can access their coins with their smart phones or computers.

As a new and growing virtual currency, Bitcoin has certain advantages over conventional fiat currencies. Here are 5 benefits you will enjoy when using Bitcoin

1) No tax

When you make a purchase in dollars, euros or any other national currency, you have to pay an additional fee to the government as a tax. Each purchasable item has its own designated tax rate. However, when you shop with Bitcoin, sales taxes are not added to your purchase. This is considered a legal form of tax evasion and is one of the main advantages of being a Bitcoin user.

With zero tax rates, Bitcoin can be especially useful when buying luxury items that are exclusive to a foreign country. Such products are often heavily taxed by the government.

2) Flexible Online Payments

Bitcoin is an online payment system and like any other system, Bitcoin users have the luxury of paying their coins from anywhere in the world with an internet connection. This means that you can buy coins from the comfort of your bed instead of going through the agony of going to a specific bank or store to do your business.

In addition, online payment with Bitcoin does not require you to fill in details about your personal information. Thus, processing Bitcoin transactions is simpler than transactions through US bank accounts and credit cards.

3) Minimal transaction fees

Fees and exchange costs are part of standard money transfers and international purchases. Bitcoin is not controlled or moderated by any intermediary body or government agency. Therefore, transaction costs are kept very low compared to international transactions with common currencies.

Furthermore, transactions in Bitcoin are not known to be time-consuming, as it does not involve the complications of typical authorization requirements and waiting periods.

4) Hidden User Identity

All Bitcoin transactions are discrete or in other words Bitcoin gives you the option of User anonymity. Bitcoins are like cash-only purchases in that your transactions can never be traced back to you, and those purchases are never linked to your personal identity. In fact, the Bitcoin address generated for user purchases is never the same for two different transactions.

You have the option to voluntarily reveal and publish your Bitcoin transactions, but in most cases users keep their identities private.

5) Absence of outside interference

One of the biggest advantages of Bitcoin is that it eliminates third-party interruptions. This means that governments, banks and other financial intermediaries have no authority to disrupt user transactions or freeze a Bitcoin account. As mentioned earlier, Bitcoin is strictly based on a peer-to-peer system. Thus, Bitcoin users enjoy more freedom than using regular national currencies when making purchases with Bitcoin.

Digital currencies like Bitcoin are relatively new and have yet to undergo major testing. As a result, many believe that there are certain risks involved in using Bitcoin. Regardless of Bitcoin’s potential shortcomings, it is clear that its fundamentals are strong enough to make it a legitimate contender to challenge conventional currencies in the not-too-distant future.

Advantages of Paying with Bitcoin

Due to their unique nature, virtual currencies offer many advantages over traditional currencies. Over the past few years, the digital currency world has been undergoing many positive changes. There are many cryptocurrencies, but Bitcoin is one of the most popular. In this article, we will take a look at some of the most prominent advantages of paying with Bitcoin. Read on to find out more.

1. User autonomy

For many users, digital currencies give them more freedom than traditional currency. People can have better control over how they spend their money. The good thing is that they don’t deal with an intermediary like a government or a bank.

2. Consideration

Another advantage is that things bought with Bitcoin are discrete. Only the user can publish Bitcoin transactions. Moreover, they do not have a name next to the transactions. In addition, these transactions are almost impossible to trace.

In fact, each transaction has a different Bitcoin address. But this does not mean that these transactions cannot be traced back. So if you don’t want to let others know where you spend your money, you can use cryptocurrencies to make payments.

3. Peer-to-Peer Focus

Another great advantage of the Bitcoin payment system is that it is built on a peer-to-peer basis. In other words, users can send and receive payments without getting permission from any authority. Payments can be made in seconds as long as the user is connected to the internet.

4. No bank fees

Unlike traditional fiat currencies, Bitcoin comes with no deposit fees, overdraft fees or minimum balance fees. Therefore, you don’t have to worry about holding your account or balance fees.

5. Low transaction fees

Typically, foreign purchases and regular money transfers come with exchange costs and fees. Because cryptocurrencies do not require the involvement of the government or any intermediary institutions, transaction costs are extremely low. If you are a traveler, this can be a great advantage for you. In addition, bitcoin transfers are very fast, which eliminates the need for authorization and long waiting times.

6. Mobile payments

Like any online payment system, cryptocurrency users can make payments through their mobile phones as long as they are connected to the internet. Therefore, they do not need to go to the bank to make purchases. Moreover, you do not need to show your personal identity to complete the transaction.

7. Availability

Intimate users can receive and send Bitcoins using their computers or smartphones, without the need to involve a traditional bank or other authority. Plus, users don’t need to use their credit cards to pay. Thus, Bitcoin allows more accessibility than other options you can try.

Long story short, these are just some of the main advantages of paying with Bitcoin instead of using traditional payment methods. We hope this article will help you understand cryptocurrencies better.