What is the value of Bitcoin?
Bitcoin has the mathematical characteristics of money (durability, portability, interchangeability, scarcity, separability and identifiability), but it does not rely on physical characteristics (such as gold and silver) or the trust of the central authority (such as fiat currency).
In short, Bitcoin is supported by mathematics. To have value, a form of currency requires trust and use. With these features, compared with Tecoin, this can be reflected in its growing number of users, businesses and start-ups. Like all currencies, Bitcoin's value comes directly from people who are willing to accept it as a payment method, which is also the only source.
There are no banks or governments involved in this process, so Bitcoin is an excellent way to perform certain activities (such as transfers). Here are some reasons:
1) Person to person direct transfer without participation of intermediaries
Generally speaking, transferring money to people who are not near you requires the use of a bank or other remittance service to speed up the transfer. Er sending funds with bitcoin is equivalent to taking cash from his wallet to someone.
2) The cost is approximately zero
Bitcoin has no middleman. This means that the cost of sending and receiving Bitcoin funds is almost zero or very low. This is an important advantage of Bitcoin, especially for small payments. Bank transfers and credit card payments are expensive, making it difficult to send small amounts of money. The structure of Bitcoin is ingenious and favorable, and the settlement fee is close to zero bitcoin, which is easy!
3) No third party supervision or restrictions
Bitcoin does not require bank or third party settlement, so the process is faster and capital can flow freely. Bitcoin is global, and there is no difference in monetary units between countries. There are already many stores and websites around the world that accept Bitcoin.
In addition, the total amount of Bitcoin is limited. The number of bitcoins is designed to be limited to 21 million to avoid inflation. There are only 21 million in the world, and its output is carefully designed and controlled by code. A Bitcoin can be subdivided to 8 decimal places at most, and the mining output of Bitcoin will be halved every 4 years, and the production of new Bitcoin will stop when the total number of Bitcoin issued reaches 21 million in 2140.
Therefore, it has a certain scarcity. Like paper money, it will not be devalued due to excessive issuance, and it is easy to be divided. The process of obtaining it is also similar to gold mining, so it is known as "digital gold".
How to use Bitcoin?
You can obtain Bitcoin through the following channels:
Buying Bitcoin at a Bitcoin Exchange
Exchange Bitcoin with people near you
Get Bitcoin by Mining
Bitcoin is stored in a digital "wallet". A digital wallet is similar to a bank account where you keep yen or dollars.
Anyone can use Bitcoin simply by creating a digital wallet. The wallet can then be used to save Bitcoin and send and receive payments.
Bitcoin's receiving address is a long string of characters, similar to an email address. Since its length is difficult to remember, it is usually necessary to use shortened IDs or QR codes to execute transactions.
At present, there are a variety of free Bitcoin wallets that meet various needs. For example, you can install a wallet application for daily use on your mobile device or a wallet for online payment only on your computer. Anyway, it is very convenient to select and install the wallet. Of course, you can also store Bitcoin on the Bitcoin trading platform.
Through wallet transfer or withdrawal from the trading platform, you can transfer Bitcoin from one wallet to another.
