How Bitcoin works

Bitcoins is a decentralized form of cryptocurrency. That is, they are not regulated by a financial institution or government. Therefore, unlike a traditional bank account, you do not need a long list of procedures such as a long ID in order to establish what is known as a bitcoin wallet. The Bitcoin wallet is the one you use to access your bitcoins and send bitcoins to other individuals.

How to set up an account

You can get a bitcoin wallet from a bitcoin broker like Coinbase. When you open your wallet through a certified broker, you are given a bitcoin address, which is a set of numbers and letters, similar to an account number in a bank account, and a private key, which is also a set of numbers and letters that serve as your password.

How Bitcoin works as an anonymous payment processor

With Bitcoins you can do 3 things, make a purchase, send money anonymously to someone, or use it as an investment. More and more traders are accepting bitcoins as a method of payment. Using bitcoins instead of money, you’re basically making that purchase anonymously. The same goes for sending money, so you don’t have to submit a mountain of payment to be able to set up bitcoin anonymously, you can basically send it to someone else anonymously.

How does Bitcoin work as an investment

The price of Bitcoin varies from time to time. To put things in perspective, in early 2013 the average price of a bitcoin was $ 400 per bitcoin, but in late 2013 the price of bitcoin was over $ 1000. This means that if you had 2 bitcoins for $ 800 in early 2013 and saved them as an investment in late 2013, those two bitcoins would cost more than $ 2000 to more than $ 800. Many people store bitcoins because their value varies.

Bitcoin casino and poker sites

Due to the anonymity of bitcoin, the gaming industry has adopted bitcoin as a payment method. Bitcoin casinos and bitcoin poker sites are gaining momentum and offer players the opportunity to make deposits, play at tables with bitcoin and withdraw directly from the bitcoin wallet. This means that there is no tax or government control option. Like a regular Nevada casino, where you don’t have to register anywhere and all transactions are anonymous.

How to send Bitcoin

To pay for goods and services or send bitcoins to an individual, 3 things are needed. Your bitcoin address, your private key and the individual bitcoin address. From that moment on, through your bitcoin wallet, you will put 3 pieces of information, namely: input, balance and output. The input is your address, the number of bitcoins you will send the balance to, and the output is the address of the recipient.