Bitcoin is a new form of money. It’s more of a digital money or a virtual currency. Furthermore, Bitcoin is a digital currency in form of electronic cash, involved in innovative payment network. It’s also a crypto currency that has gained a lot of popularity. Bitcoins can be obtained and accumulated in many ways. How to get Bitcoins, the most popular way of obtaining Bitcoin is via Bitcoin Mining.
The digital currency, Bitcoin, came into place in 2009 by a Satoshi Nakamoto. Bitcoin is the first payment network without any central authority and also no middlemen. Hence, anyone can easily send the digital money to anyone and anywhere worldwide. Furthermore, it’s the first decentralized digital currency to use peer-to-peer technology to facilitate instant online payments.
Bitcoin enables its users to be in full control of their money. It provides a platform for micro-payments opportunities. It offers low transaction fees than traditional government issued currencies. Bitcoin is open source meaning that it has no central authority like banks. Hence anyone and everyone can use Bitcoin since no body owns or controls it. Bitcoin controls and manages its issuing of Bitcoin via a network known as Block chain.
Block chain is a public ledger of transactions. In Bitcoin, Block chain uses distributed ledger technology. The distributed network public database technology is used for storing, issuing and also the transactions. Block chain is a shared public ledger on which the entire Bitcoin relies on. It is a registry of assets and transactions. Where the confirmed transactions, new blocks, sums up to existing blocks in a strict chronological order to form a chain. Hence, the process enable interested market players to get up to date with Bitcoin transactions. For the reason that there’s no centralized book keeping system.
How to get Bitcoins via Bitcoin Mining and the various ways of accumulating Bitcoin Digital Currency
The various ways of getting and accumulating Bitcoins;
- Bitcoin mining
- Means of payment for goods and services
- Buying from an exchange
Bitcoin Mining involves individuals and companies participating in Bitcoin network and owns governing computing power. They get rewards through release of new Bitcoins and transaction fees paid through Bitcoins.
Furthermore, Bitcoins gets created and rewarded to the miners as a payment mode for processing Bitcoin transactions. Whereby, the users uses their computing power to record and verify Bitcoin payments into a public ledger.
Consequently, new Bitcoins continue to be released to the miners periodically at a fixed and declining rate.
Mining Bitcoins is done with the Bitcoin Mining Software.
Means of payment for goods and services
Bitcoins can easily be obtained and accumulated by accepting them as a means of payment for goods and services. That is, other that Bitcoin Mining.
A business person can easily accept Bitcoin by adding it as a payment option. Therefore, allowing the customers the option to pay with Bitcoins.
That is, just like other payment options like PayPal, Mpesa, credit cards, Eazzy pay and mVisa.
Buying from an exchange
Another way of getting Bitcoins is by buying from an exchange. Hence an individual through the bank, can easily buy Bitcoins directly from an exchange.
Individuals can easily buy or sell the digital currency through the Bitcoin exchange platforms or ATMs.
Other ways of obtaining and accumulating Bitcoins include;
- Jobs that pay in Bitcoins
- Bitcoin games and casinos
How to use Bitcoins
- To purchase goods and services from the merchants accepting Bitcoins.
- Purchase anything online all over the world.
- As an investment opportunity. Whereby the investor gets Bitcoins, then hope for the value to go up or increase in order to exchange back to cash.
Features of Bitcoins
This means that no single institution controls the network. Therefore an open source owned by no one. Bitcoin is unlike other financial institutions. This is because it’s not controlled and regulated by the central government.
Miners act as the auditors of the Block chain.
The record gets to all the servers at the same time.
Once a transaction is committed and verified on the Block chain, it cannot be reversed back. This reduces risk of fraud and ensures no double spending.
The underlying algorithm controls the supply of Bitcoins. Hence the miners receive new Bitcoins, released periodically at a fixed and declining rate.
Such that there will be only 21 million Bitcoins in supply. Thus, making its price rise as the crypto’s demand continues to rise.
The algorithm controlling the network is available to everyone hence transparent. Every transaction done through the network can easily be tracked and traced to the original block source.
A Bitcoin is divisible to eight decimal places. 100 millionth of a Bitcoin is referred to a satoshi.
Other Bitcoin features includes;
- Easy and fast person to person transactions
- Very Secure
- Fair and minimal processing fees
- Worldwide payments
Converting Bitcoins to cash
Other than converting cash to Bitcoins, individuals can also easily convert Bitcoins to cash. One can easily do so via an exchange service i.e. coin base or a Bitcoin ATM. In Africa, individuals can in addition use Bitwala to transfer their Bitcoins to Mpesa wallets.
Always remember that once you convert your Bitcoins, it no longer increases or decreases in value.