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What Is Bitcoin-briefly And Basic Explanation Of Bitcoin | SCOT UG

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Bitcoin is an algorithm-based, decentralized form of electronic money that is not backed by any national government. Bitcoin can also be exchanged anonymously in order to avoid tax evasion. Bitcoin transactions are irreversible, meaning it may make it difficult for recipients to dispute bitcoin transactions.

The term “bitcoin” can refer to either the currency, which is often called BTC to distinguish it from the technology, or to the distributed computing network. The technology behind bitcoin, including the blockchain database that holds records of all completed transactions, is opened-source, meaning that anyone can use, modify, and distribute it freely without paying for an outside license.

WHAT IS BITCOIN-BRIEFLY AND BASIC EXPLANTION OF BITCOIN 

What Is Bitcoin?

Bitcoin is a decentralized digital currency transferred via the internet without the need for a financial institution or bank. Bitcoin consists of three elements: blockchains, miners, peer-to-peer networks. Bitcoin is completely open-source and has no central repository or developer that owns it. This means that there are no restrictions for who can create or use Bitcoin. Bitcoin is not owned by any particular person, company, or organization.

Who created Bitcoin?

Bitcoin was invented by a yet unknown group called Satoshi Nakamoto, over years and came public in 2009. No one knows who Satoshi Nakamoto is, or if it's an individual or a group of people. They wanted to create something that has never existed before; an electronic payment system based on cryptographic proof instead of trust.

Is Bitcoin Legal?

Bitcoin is a form of digital currency that is not backed by any banks or governments. Bitcoin is legal in the United States, but not in many other countries, including Bangladesh, Ecuador, Iraq, Kenya, Lebanon, Madagascar, Malaysia, Nigeria, Oman, Qatar, Russia, Sudan, Switzerland, Thailand, United Arab Emirates, United Kingdom, Vietnam and many others. Bitcoin can be used to pay for products or services. However, people in countries where BTC is not allowed secretly use them through anonymous and Public BTC exchange sites through the use of VPNs. In other words, these people still use bitcoin at their own risk.

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Bitcoin and the Global laws.

How Bitcoin works?

Since Bitcoin is a digital currency, It is created by computers solving complex mathematical problems in a process known as mining, but it does not physically exist anywhere. This would make it seem to be very difficult to steal, but because bitcoin does not have any physical properties to identify or trace, it can be spent or transferred anonymously making it an attractive payment option for drug dealers, money launderers, tax evaders, and other criminals. This anonymity and lack of regulation make it impossible to ensure the safety of money and incur any punishments.

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What Are the Advantages of Paying with Bitcoin?

Advantages of Paying with Bitcoin include the immediacy of payments, their lower transaction fees, and no need for a middleman (ex: credit card companies) to check or approve payments. There are fewer, almost no transaction fees, bitcoins Cannot be stolen, there are almost No Risks of "Charge-backs, "no Tracking". Click here to read more details about bitcoin advantages.

Disadvantages of Paying with Bitcoin

Bitcoins are not controlled by a central bank and transactions are almost instantaneous. One of the biggest disadvantages of Bitcoin is that it’s hard to buy with fiat currency. The use of Bitcoin has been frowned upon because of scams and fraud that have plagued the cryptocurrency since its inception.

Bitcoin has experienced an incredible rise in popularity. This, coupled with the fact that Bitcoin has no central authority or regulation board is leading to speculation on its future. Bitcoin’s price volatility is another concern, as it can swing by $100 overnight. Read more about the Cons of Bitcoin here

Conclusion

Finally, Bitcoin has the potential to improve international economic relations by providing users with competitive advantages. It can also be exchanged anonymously to avoid tax evasion, and recipients may find it difficult to dispute bitcoin transactions because they are irreversible. What other information do you have about this new monetary system? Leave your thoughts in the comments section below!

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