Bitcoin is a digital currency, created in 2008. It is the property of an anonymous creator named Satoshi Nakamoto. Bitcoin’s value is derived from the belief that it is a store of value, an anonymous payment method, and a hedge against inflation. However, none of these features have a proven track record.
Bitcoin transactions are made through the internet and do not require any third-party authority to be involved. The decentralized nature of bitcoin makes it difficult for third parties to defraud the system. This makes bitcoin the best choice for online transactions, especially those with small amounts of money. Aside from its security, bitcoin is also very easy to use and has many uses.
Bitcoin can be purchased on an exchange. Bitcoin is not a physical object, so it is easy to lose, but the cryptographic keys that secure it make it difficult to counterfeit. You can even buy high-end watches using Bitcoin instead of cash. Some car dealers are also accepting bitcoin payments. Moreover, some insurance companies accept Bitcoin as a form of payment. AXA, a Swiss insurance company, will start accepting bitcoin for all its insurance lines from April 2021, though life insurance is not included. Another example of a Bitcoin-accepting company is Premier Shield Insurance, which accepts Bitcoin for premium payments on auto and home insurance policies in the US. Bitcoins are also accepted through BitPay, a cryptocurrency debit card.
Bitcoin users are motivated by concerns about privacy and curiosity. However, the anonymity of Bitcoin can also be used for criminal purposes. Bitcoins have associated data that can reveal a person’s financial history. For example, 30,000 Bitcoins were seized during the Silk Road bust; the seized Bitcoins were worth $20 million when they were auctioned.
