3 Reasons To Consider The Bitcoin Digital Currency

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Bitcoins are currently growing in popularity with the number of individual investors willing to denominate part of their money in this new digital currency, as well as a growing number of businesses that are willing to accept Bitcoin cash payments. This is a new type of digital money that is completely decentralized in nature and relies on a peer-to-peer network connected to the internet in order to function and process payments. Here are three of the most important reasons why you should consider using Bitcoins for payment.

Bitcoin Is The First Decentralized Currency

For most of modern history our money and currency has been controlled by a central bank and a network of smaller banks, and electronic payments having been facilitated using an electronic automated clearing house facility. But the Bitcoin network changes this drastically because transactions are processed on a peer-to-peer basis rather than having to be processed through a central electronic clearing house or other centralized financial institution. The fact that Bitcoin is decentralized means that it is not issued by any government as regular currencies would be, and therefore the value of Bitcoins is not tied to any type of geopolitical events while still being accepted as payment and a medium of exchange.

Bitcoin Acts As A Hedge Against Inflation

One of the reasons that this type of digital currency has been growing in popularity at such a rapid rate is that many people are increasingly becoming mindful of government policies designed to erode the value of traditional currencies over time and are looking for a financial hedge against this erosion of value. One of the reasons that money denominated in Bitcoins is largely immune from inflationary pressure is that there is a fixed money supply of 21 million Bitcoins that can never be exceeded, meaning that the owners of Bitcoin cannot simply print more money the way that central banks and governments can.

Transaction Fees Are Lower With Bitcoins

Because of the decentralized nature of the Bitcoin payment network and the block chain that makes Bitcoin financial transactions possible, there are little to no fees when it comes to transferring Bitcoins from your digital wallet as payment. This can save money for both the vendor or merchant and also for the individual who is using Bitcoin to make a purchase. By learning about the important benefits of using Bitcoin over any other regular currency, you can see if this type of digital currency is the right choice for you.

Discover the money making secrets of Bitcoin power users by clicking on Bitcoin Secrets.

This article may be reprinted with a link to http://Bitcoin-Secrets.com/

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How To Use Bitcoin Digital Wallet Software

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For those who are still unfamiliar with the concept of Bitcoin, the concept behind having a digital currency wallet might be equally confusing. This article will help explain what a Bitcoin is, why it has become so popular so fast, and how to get the most out of using your Bitcoin digital wallet. Bitcoin itself is something called a “cryptocurrency,” which means that it is 100% digital and is protected and maintained by a very advanced set of military grade public key algorithms that require solving complex mathematical equations.

A Currency Powered By An Algorithm

The computer network that solves these equations is peer-to-peer in nature, meaning that it is a collection of interconnected computers from all over the world. There is a very large file that some digital wallets will require you to download called the block chain, which is the sum total of every Bitcoin transaction that has ever occurred. One of the implications of the block chain as part of the Bitcoin algorithm is that every single transaction is recorded permanently as a matter of public record, meaning that Bitcoin is not actually anonymous and can be used to identify the people behind certain transactions.

Purchasing And Paying In Bitcoins

If you want to own or purchase bitcoins then the first step that you need to take is download the free digital wallet software to either your computer or your smart phone. Many people choose to make use of the smart phone version of the digital wallet because it allows them to carry their bitcoins with them as well as make purchases in person by paying with bitcoins. The way that you can pay using bitcoins in person instead of just on the internet is that the merchant can use their smart phone to generate an invoice that has a QR code, which is a square shaped black and white box that you can capture with your smart phone to complete the transaction.

Protect And Secure Your Digital Wallet

Because the new Bitcoin cryptocurrency is completely digital, it is important to be extremely cautious when it comes to protecting your digital wallet to make sure that your money is not compromised in any way. It is very important to keep your private password safe so that you never forget it and so nobody else has access to it, and it is also a bad idea to ever post your Bitcoin address on the internet. By learning more about Bitcoin and how to use the digital wallet software you can decide whether you want to convert some of your money into Bitcoins in order to take advantage of the new decentralized cryptocurrency.

Discover the money making secrets of Bitcoin power users by clicking on Bitcoin Secrets.

This article may be reprinted with a link to http://Bitcoin-Secrets.com/