Bitcoin also referred to as cryptocurrency is a virtual form of money virtual that uses peer-to-peer technology for instant transfers between individuals or companies. It can be purchased and used as a currency and is a form of investment as well.
Bitcoin is the first example of a cryptocurrency developed by individuals and companies worldwide using advanced computer software to solve math problems.
Bitcoin has been around since January 2009. You can use it to purchase goods and services, but not many stores still allow Bitcoin and some countries have banned it. But it’s completely legal to buy bitcoin in the UK.
Bitcoin appears to be synonymous with being the dark markets primary currency, which is inaccurate. When a person invests in Bitcoin in the UK, he/she don’t have to pay taxes, but if he/she sells in the future, they will have to.
There are three ways in which individuals get Bitcoins.
- Bitcoins can be purchased using ‘real’ currency.
- You can sell stuff and let people pay you using Bitcoins.
- They can be made or created by using a computer.
Every Bitcoin is essentially a computer file stored on a computer or smartphone in a ‘digital wallet’ app. Users send Bitcoins to your digital wallet, and you can send Bitcoins to other users or individuals. Every transaction is recorded in a public list referred to as the blockchain.
To receive or send Bitcoins in seconds, anyone with a computer can set up a Bitcoin address. Bitcoin is confidential, and the cryptocurrency allows many users to maintain the addresses and no personal information is needed to set up an address.
People all over the world buy Bitcoin for several reasons. Some of which include:
An asset for Speculation
Over the last ten years, Bitcoin has been the fastest-growing asset. Indeed, if you purchased bitcoin just six months ago, you will be 200 per cent up on your investment.
Acts as a safeguard against the monetary policy at the Bank of england
Unlike the British pound, which has lost much of its value due to inflation, Bitcoin has a fixed limit supply, ensuring it can’t be risen due to inflation.
The future of currency
Many Bitcoiners assume that in the future, cryptocurrency will be the new currency of the globe. Many professional experts think that bitcoin will be internet currency. It maintains privacy by recording every transaction, as nobody would know which ‘account number’ was yours until or unless you told them.