Ever heard about Bit coins? What they are and where these are used? By its name, one can easily guess it is a kind of currency but telling about its uses is not everyone’s cup of tea. But do not worry your pretty mind because we are going to discuss about every aspect of bit coins that not only tell you what are its utilities but willalso inform you that how it is operated.
About Bit coin:
It is a kind of digital currency also called crypto currency in which regulation of generating currency units and verification of transferring funds is done by using encryption techniques. This is a first digital currency which has been decentralised because its system operates without any single administrator and also without the central bank. In this system, no intermediaries are involved as the transaction between people takes place directly. The transaction that happens with the help of bit coinsis confirmed through networknodes which are done with the use of cryptography and all the transactions are recorded in a ledger which is known as block chain. The inventor of this currency is not known yet but it was created by the name Satoshi Nakamoto.
Bit coins were invented as a prize for mining process. Mining is basically a record or evidence keeping that is done by using processing power of computers. These are exchanged for products, services and other currencies. For mining process, one can use cloud mining bitcoin. The main use of miners is that they maintain the consistency of block chain and also makes it unalterable and complete.
Perks of conducting transactions using bit coins:
Person transacting with the help of these currency can avail certain advantages which may not be availed by using other currencies. These perks are discussed below:
- The user’s identity will remain anonymous unless he himself reveals the details of his transactions.
- As we have already discussed, there is no role of intermediaries while transacting through such currency. Therefore, there is not any third party interference.
- The best advantage of bit coins is that the goods that you will purchase using this currency are not required to be taxed that is, the purchases made will be free from the effect of taxes.
- The transactions fees are also very low.
- Bit coin users can make payment from anywhere and at any time. Just one click and the transaction will be completed.
- These coins are also free from the interruptions of government bans and its other agencies of financial concern.
These are the benefits of bit coins that make it different from other currencies.
The mining process of bit coin can be performed by anyone but without the computer it is not possible. Nowadays it has become difficult to complete mining process but cloud mining bitcoin has made it easy for everyone to perform the same process. Therefore, it is advisable to use the same if you do not want to indulge yourself in any difficulties.