What is BitCoin?
Just when you thought you could pay for just about anything with cash, credit or Paypal, the world goes ahead and introduces BitCoin. You’ve probably heard of it, which is why you’ve searched for “what is BitCoin?” BitCoin, simply put, is a form of digital currency. Processing companies such as Paypal are now seeing BitCoin as a wave of the future and have started accepting them as a qualified form of payment.
Cash, credit cards and/or Paypal can be used to purchase these BitCoins and with that, BitCoins can be accepted almost anonymously. For this reason, BitCoins are also considered cryptocurrency as they operate independently of a central bank.
So why BitCoin over a traditional payment?
First and foremost, it’s easy to set up. All the user needs to do is sign up for a Bitcoin address and you’re good to start sending and receiving payments. No questions asked.
Secondly, it’s anonymous. Users can have multiple addresses and these are not linked to names, physical addresses or other information that would personally identify the user.
What is BitCoin used for?
At the start, BitCoins were largely used for gaming, adult entertainment and other vices that users wanted to keep private. Because a credit card statement would show the descriptor of the business that charged the card, those customers may find themselves in trouble with a spouse or family member. By paying with BitCoins, there is no credit card descriptor to explain.
However, times have changed and there are several mainstream establishments that accept BitCoin:
How much are BitCoins worth?
Purchasing BitCoins is much like converting to a foreign currency. In the past 3 years we have seen the price of 1 BitCoin as the equivalent of anywhere from $90 USD to $450 USD. You can view the current exchange rate here: Preev