Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. Bitcoin is typically used to buy things online, but it can be used in many other ways. In this guide, we’ll show you how to pay for everyday expenses using bitcoin!
What is Bitcoin?
Bitcoin was created in 2008 by a pseudonymous person or team called Satoshi Nakamoto. The aim was to create digital money that allows for secure peer-to-peer transactions on the internet.
Unlike services such as Venmo or PayPal. Bitcoin does not rely on the traditional financial system for permission to transfer money from debit/credit cards. Bitcoin uses a decentralized system where any two people in the world can send Bitcoin to each other without involving any institution like banks or governments. It is an absolute peer-to-peer method of transaction.
Because it is decentralized, the keeps its trustworthiness by tracking every transaction on the blockchain. Bitcoin's blockchain is similar to a bank’s ledger. It is a record of every Bitcoin transaction that is ever made.
Unlike a bank’s ledger that is only owned and run by the bank. The Bitcoin blockchain is shared across the entire network. No person or organization has control of it and anyone can become a part of the network.
Unlike fiat currency that can be printed on a whim by the government, Bitcoin has a fixed supply of 21 million BTC. This is to prevent any inflation or manipulation.
How to Use Bitcoin?
Before you can use Bitcoin, you will need to first get yourself some Bitcoin. Bitcoin can be bought online using fiat currency. There are many Bitcoin brokers available on the internet or Bitcoin ATMs that can sell you Bitcoin by accepting fiat currency. You can also yourself up on cryptocurrency exchanges and buy Bitcoin from there.
Another way to get Bitcoin is by mining. Because the Bitcoin blockchain needs computing power to run, it depends on miners setting up computing nodes to help power the blockchain. By contributing to running the blockchain, the system rewards the miners by giving them Bitcoin.
To deposit your Bitcoin and carry out transactions, you will need to have a wallet. You can download free wallets on your phones such as Trust Wallet and Atomic Wallet. If you want stronger security, you can purchase hardware wallets and cold wallets such as the ELLIPAL and Ledger.
Once you have your wallet, you can deposit your Bitcoin inside. With a wallet, you will have a choice to either send people Bitcoin or receive Bitcoin.
To send or pay with Bitcoin, simply scan the receiving party's QR code or input their Bitcoin account's address into your wallet and press send on your wallet. Input your password and complete the transaction.
Why Should You Pay Using Bitcoin?
Paying using Bitcoin can be compared to paying with a credit/debit card. The advantages of paying with Bitcoin includes safety and lower transaction fee.
When paying with cards, you must hand your card to the cashier or swipe it on the payment terminal. These machines can be hacked to make the terminals can send your card information to hackers. Untrustworthy cashiers can also keep your credit card information. However, when paying with Bitcoin, the coins come straight from your wallet and to the other party's wallet without a way to intercept them. It is also not possible for the cashier to steal access to your wallet from you.
For merchants, there are also no chargebacks when taking payments via Bitcoin because Bitcoin transactions are irreversible. They do not need to worry about customers asking for refunds from their banks.
Merchants who accept Bitcoin payments also save on credit card fees. Unlike credit cards where there will be processing fees involved, Bitcoin payments can be sent and received at either very low cost or none at all.
For shoppers, the advantages of paying with Bitcoin are even greater. Bitcoin transactions are simple and anonymous. There are no interruptions from intermediaries, and transaction fees are low. It is a true peer-to-peer transaction without the need to disclose any personal information.
Where to Spend Your Bitcoins?
There are many ways and places to spend Bitcoin. Here are some examples:
Many online retailers now accept Bitcoin and other cryptocurrencies as payment. It is as convenient and easy as using a debit or credit card to pay. Bitcoin payment can be chosen at checkout to purchase your online shopping cart.
Bitcoin can be easily used as a mutual currency between two companies or individuals who are located in different countries. The usual international transaction can take a long time and many fees are involved. Using Bitcoin, two parties can save both time and cost.
Many shop storefronts also now accept Bitcoin as a form of payment. Simply scan the shop's QR code to pay BTC through your wallet. You can now also create a Bitcoin debit card which helps you convert your Bitcoin to fiat whenever you pay.
How to Protect Your Bitcoins?
As Bitcoin is a decentralized currency, there are no banks or governments to help you look over them and keep it safe. There is also no one responsible to help you restore your Bitcoin assets if you happen to get them stolen. Every Bitcoin user must be able to protect their Bitcoin.
The best way to protect your Bitcoin is to use a hardware wallet or a cold wallet. These are devices that are made especially to protect your Bitcoin and other cryptocurrencies from any form of hacking.
For example, a very popular cold wallet, the ELLIPAL Titan cold wallet, is a well-designed device that protects your Bitcoin from both online hacking and offline hacking. With your Bitcoins stored inside the ELLIPAL Titan, you will not need to worry if your BTC will be stolen.