Do you know what Bitcoin is? A lot of people don’t, but the fact that, after not joining in the fun for many years, the Bitcoin wallet iPhone app is now available really does mean that we need to start paying attention. It is the first type of cryptocurrency available that allows for global, free transactions. It was invented by Satoshi Nakamoto, which is a pseudonym, and introduced in 2009. No commodity underpins Bitcoin, which means that it is a commodity in its own right.
Where Does Bitcoin Come From?
Bitcoin can be mined by solving incredibly complex mathematical equations. The reason why these equations are becoming increasingly complex is because Satoshi Nakamoto only made a limited number available and he aimed for them all to be mined by a certain date. As such, solving the mathematical equations is an equation in its own right. There are only 21 million Bitcoins in existence, of which around 11 million have been mined.
How Does the Bitcoin Wallet iPhone App Work?
All Bitcoin apps, whether they are Android, iOS, web-based, or on PC, work the same way. Essentially, they hook up to a network, which is the exchange, and people can buy and sell Bitcoins, or parts thereof, with each other. Transactions on the exchange cannot be reversed. More and more merchants are signing up to this system, taking up their own space on the exchange.
How Is Bitcoin Valued?
The value of Bitcoin is completely down to supply and demand. It is a fully decentralized financial system that isn’t controlled by institutions, governments, or central banks. Rather, the value is what someone who wants to buy it agrees that it is worth. The value is increasing more and more because people are getting increasingly interested in it.
The Bitcoin Benefits
Bitcoin offers a number of key benefits:
- It offers very rapid transactions.
- There are no mandatory fees associated. You can choose to pay a small fee to have your transaction processed quicker.
- There is no chance of fraud happening, because the only person who can send Bitcoin is the key holder, and the only person who can receive it is the other key holder.
- Data is 100% secure and private. There are just two keys involved in each transaction, each of which is signed digitally. Personal information is never shared between buyer or seller.
- The payment system is highly convenient. So much so, in fact, that some merchants have fully signed up to it.
- It allows for rapid international payments. So long as someone has a Bitcoin wallet and an internet connection, transactions can be made.
- It is very easy to track where transactions have gone, as they are all stored in the block chain.
- It is possible to make micropayments as well.
So, have you signed up to the network yet? If not, then why not download a Bitcoin wallet app for the operating system that you use, and find out what all the hype is about?