Bitcoins are a decentralized form of cryptocurrency. Meaning, they are not regulated by a financial institution or government. As such, unlike a traditional bank account, you do not need a long list of documents, such as an identifier, to be able to establish what one calls a bitcoin wallet. The bitcoin wallet is what you will use to access your bitcoins and send bitcoins to other people.
How to create an account
You can acquire a bitcoin wallet from a bitcoin broker such as Coinbase. When you open a wallet through an authorized broker, you receive a bitcoin address consisting of a series of numbers and letters, similar to an account number for a bank account and a private key also including a series of numbers and of letters. which serve as a password.
How does Bitcoin work as an anonymous payment processor?
You can do 3 things with bitcoins, you can make a purchase, send money anonymously to someone or use it as an investment. More and more merchants are accepting bitcoins as a means of payment. By using bitcoins instead of money, you make this purchase anonymously. The same goes for sending money because you do not have to submit a mountain of payments to be able to establish a bitcoin anonymously. You can basically send money to someone else anonymously.
How does Bitcoin work as an investment?
The price of a bitcoin fluctuates from time to time. To put things in perspective, in early 2013, the average price of a bitcoin was about $ 400 per bitcoin, but by the end of 2013, the price of bitcoin had risen to over 1,000 USD. This meant that if you had 2 bitcoins worth $ 800 in early 2013 and stored them as an investment at the end of 2013, these two bitcoins would have cost more than $ 2,000 instead of $ 800. Many people store bitcoins because of the fact that their value fluctuates.
Bitcoin Casino and poker sites
Due to the anonymity of Bitcoin, the gambling industry has chosen Bitcoin as a means of payment. Bitcoin casinos and Bitcoin poker sites come to life and offer their players to make deposits, play with Bitcoin at the tables and withdraw directly into their bitcoin wallet. This means that there are no taxes or opportunities for government control. A bit like a normal Nevada casino where you do not need to register and where all your transactions are anonymous.
How do you send Bitcoin
To be able to pay for goods and services or to send bitcoins to an individual, you need 3 elements. Your bitcoin address, your private key and the bitcoin address of the individual. From this point, in your bitcoin wallet, you will put 3 informations, namely: entry, balance and exit. The entry refers to your address, the balance to the amount of bitcoins you are going to send and the output corresponds to the address of the recipient.
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