Recently, the cryptocurrency Bitcoin(or BTC) has been
recieving a lot of attention in the media, both positive and negative. You may
be wondering "What's The Big Deal?". Well, Bitcoin, and other
altcoins, are a relatively new universal international currency, which unlike
traditional fiat currencies, is decentralized, meaning there is no central bank
backing it's value, regulating it's transactions, hoarding it, or printing
more. Bitcoin operates on a peer to peer level, meaning anyone in the world can
spend or get paid in bitcoin.
One of the great features of BTC is that it is
decentralized, not tied (officially, fiat or basketed) to a particular
currency. This means everyone in the world is on an even playing field so to
speak. My Bitcoin in the USA is equal to your Bitcoin in Canada, Europe, or
Asia. The price will fluctuate as the market drives price up or down, but no
one country's BTC will ever be worth more than another. It is a limited
resource, there will be no "new" bitcoins produced there are reserves
and certain amounts are created via mining daily. At least in theory this
creates a completely market-driven currency, devoid of the inherent
inflation/deflation cycles of government and central bank backed currencies.
With any new technology come plenty of questions.
Here's
some of the most common, and some quick answers
Is Bitcoin Safe?
It's as safe as most any other funding options. Unlike a
bank, there's no such thing as a "hold" on Bitcoin, and BTC
transactions are not reversible, so there are no chargebacks, and no chance of
double spending.
What about Hackers?
Just like Paypal, Amazon.com, Target and so many more, if
hackers really want your information, and there is an available entrance point
for them, they will take it. Bitcoin is no safer, nor less safe than
traditional bank accounts, credit card accounts, or merchant accounts.
Isn't Bitcoin just a scam, ponzi scheme, etc?
No, it's just a currency system, and like any currency
system, MLM, ponzis, and scammers are out there working it. Beware and research
before investing, or utilizing any services.
What can I use Bitcoin for?
An open question like this is probably the most common, and
most difficult to answer succintly. Here's a short version:
BTC can be used as a
hedge against collapsing, or inflating currencies as part of a portfolio. BTC
can be used as you would use cash. It can be stored, traded, or spent.
Where Can I Get Bitcoin? Do you have to join a club or
something?
Well, no, you don't have to join a club. There are Bitcoin
and altcoin Exchanges, which buy/sell/trade BTC and other currencies 24 hours a
day, they're always open. There are also websites you can visit to get tiny
amounts of Bitcoin or other cryptocurrencies for free, called faucets. Like any
currency, there are PTC programs, "clubs", and MLM programs that you
can also utilize to earn small amounts of free bitcoin.
How liquid is BTC?
That depends on how you look at the question. Hundreds,
maybe thousands of new businesses are accepting Bitcoin for payment each day, the
market is growing exponentially. Can you go into your neighborhood megamart and
spend bitcoin? Not "yet". Bitcoin ATMs are springing up all over the
world, especially Japan, Indonesia, Europe and China. You can also buy gift
cards to almost any major national/international chain store/restaurant/website
on several BTC to Giftcard sites. These two developments allow you to spend
your bitcoin in virtually any city with more than one traffic light across the
first world.
Isn't it a bubble, won't the price go down (to zero, lower
etc)?
While the market determines the value, and it's impossible
to say where the price will go day to day, it is important to note that Bitcoin
has survived the collapse of it's largest Exchange (Mt Gox) and severe
restrictions in the one of the largest markets in the world (China). The price
has dropped since it's all time high, but since it's inception in 2008 has grown nearly by a factor of nearly
70k, and in the past year has quadrupled, despite the fall from record levels.
Had you bought, or been given BTC at it's birth or early adoption period, $1.00
worth of Bitcoin would today be worth $65,000.00. The market is growing daily,
and acceptance for payment is growing at exponential levels. While the price
may not stay where it is, it's doubtful that Bitcoin will collapse,
disintegrate, disappear, or become unusable any time soon.
Submitted by
Jeff Rey Key
(past credits: Etch Magazine, MSU Reporter-Intelligencier,
Poetry Protocol, PunkRockClub.com)
https://www.facebook.com/thepunkrockclub
For More Information Visit
http://bitcoin.org
http://http://en.wikipedia.org/wiki/Bitcoin
http://bitcoincharts.com
http://NetPaySource.com/coins.htm
http://www.reddit.com/r/Bitcoin/
https://en.bitcoin.it/wiki/Main_Page
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