Bitcoins -- Should you Use them?

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Bitcoin was launched as a private labor just last year. Unlike traditional stock markets, such as the Euro, Sterling and Dollar, it is not controlled by a central monetary authority. Instead, it is underpinned by a peer-to-peer network of its users' computers. This is similar to how Skype, a video chat service, operates.

The basic unit of value is the bitcoin. However each bitcoin can be subdivided into satoshies. One satoshi is comparable to one hundred millionth of a bitcoin (ie, a bitcoin divided to eight decimal places).

Bitcoins and satoshies can be transferred in internet user to another in order to pay for goods or services at virtually zero cost. This allows you to make international passes across and not waste time with exchange rates and burdensome bank charges. Bitcoins can be bought and sold for traditional cash at special transactions.

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Bitcoin openings

In order to use Bitcoin, you require a wallet, a special set of scripts in which you store, send and receive bitcoins. There are three kinds of openings, software openings, mobile openings and web openings.

Software openings are installed on your computer and they give you full control over your wallet. Mobile openings are installed in your phone or islate and allow you to use Bitcoin for daily transactions in shops and supermarkets by deciphering a quick response (QR) code. Web openings are generally on the world wide web, for instance they are a form of fog up storage.

Payments using bitcoins are surprisingly easy. They can be made from openings on your computer or phone just by entering the receiver's address, the amount and then pressing send. Smartphones can also obtain a receiver's address by deciphering a QR code or by bringing two phones that include near-field-communication (NFC) technology, a form of radio communication, close to one another.

Receiving payments is just as easy... all you have to do is give the payer your bitcoin address.

Protecting your wallet

A bitcoin wallet is like a wallet full of cash. To reduce the risk of loss, you should keep only small amounts of bitcoins in your computer or phone and keep the bulk of your bitcoins in a safer environment, such as an traditionally wallet. Provided your wallet has been encrypted, an traditionally back-up will enable you to recover your wallet, should your computer or phone be thieved.