Bitcoin is a global digital currency system. It allows people to send or receive money across the internet. Money can be exchanged without being linked to a real identity. The mathematical field of cryptography is the basis for Bitcoin's security.
One of the differences between using bitcoin and using fiat currency online is that Bitcoin does not keep track of users; it keeps track of addresses where the money is. Each address has two important pieces of cryptographic information, or keys: a public one and a private one.
The public key, which is what the "bitcoin wallet address", is similar to an email address; anyone can look it up and send bitcoins to it. The public key also determines the ownership of Bitcoin
The private private key, is similar to a password; only with it can the owner send bitcoins from the wallet. Because of this, it is very important that this private key is kept secret. To send bitcoins from an address, you prove to the network that you own the private key that corresponds to the address, without revealing the private key. This is done with a branch of mathematics known as public key cryptography.
Why Use Bitcoin
- You can send it anywhere in the world in seconds, for pennies.
- It’s much faster and cheaper than Western Union or bank transfers.
- It’s yours – because it’s decentralized, no government or bank can freeze it or take your currency away from you.
- Bitcoin is easy to use. You can pay or be paid with a simple scan on your smartphone.
- It’s secure. Nobody can charge you or make a payment without your permission.
- Bitcoin cannot be inflated by any government; the supply of is limited by the technology.
- It’s as private as you want it to be – you can send a payment anonymously.
What Can Bitcoin Do
- Spend and save. More than 140,000 merchants – especially online – accept cryptocurrency. Try gyft.com to save 3% on gift cards, or purse.io to save big money at Amazon. Finder will help you find local merchants, whether you want beer or bullion.
- Send them to others. Whether you’re splitting a restaurant bill or sending money to family abroad, you can do it with crypto real fast, real cheap.
- Invest or Speculate with them. Bitcoin is an alternative store of value, like gold or foreign currency.
- With Bitcoin, you are part of the global digital economy!