Understanding Bitcoin and How Cryptocurrency Works

by | Nov 12, 2018 | Finance

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Bitcoin is what is known as a virtual currency and it has become a huge news topic since 2017. The cryptocurrency known as Bitcoin has led to some major innovation in technology, changes to banking regulation, and presented a more private way to exchange money. Nowadays, there are tons of major retailers who take Bitcoin as currency, while in some countries, Bitcoin is actually illegal.

Understanding Cryptocurrency

A cryptocurrency, such as Bitcoin in Dallas, TX, is a piece of computer code that has a monetary value. All of those lines of code have been built by high-performance computers and electricity. You may see cryptocurrency referred to as digital currency, which is the exact same thing. While the currency has no physical form, it can be exchange for cash money.

What Bitcoin Is

Nobody has any idea who designed Bitcoin, but it is the first and most popular cryptocurrency. All of the cryptocurrency that has come along after Bitcoin is often called altcoin or alternative coin. Some of the other cryptos out there include Ethereum, Peercoin, Dogecoin, and Litecoin. One of the major advantages of Bitcoin is that you can store it offline on your own computer or a piece of hardware.

How Bitcoin Works

A Bitcoin is entirely virtual and requires no bank to transport or store it. After you own Bitcoin, it’s similar to owning a gold coin. You have the value and can trade the Bitcoin just like you would a gold coin. Bitcoin can also be used to purchase both services and goods online. They can be traded from one person’s wallet to another. In addition, Bitcoin is known for being forgery-resistant. The act of counterfeiting the coin isn’t worth the effort that it takes.

Security of Bitcoin

If you take precautions, your Bitcoin will largely be safe when it comes to the potential of being stolen by a hacker. The biggest issue comes if you do not back up your wallet. If you do not have a copy of this somewhere, you lose the Bitcoin that were in your wallet and they will never be seen again. This is why it’s important to back up your wallet somewhere safe and off of your computer.

Buying Bitcoin

There are numerous methods for purchasing Bitcoin in Dallas, TX. One of the most convenient and beginner friendly options is to seek out a Bitcoin ATM. Thankfully, RockItCoin makes that easy by providing ATMs in many states and cities. You can learn more about purchasing Bitcoin or find a local ATM by visiting their website.

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