What is Bitcoin? How it works? Advantages of bitcoins.

What is Bitcoins?

Bitcoin is the digital coins. Bitcoins are the first decentralized digital currency. Bitcoins can be send through the internet.Compare to other alternatives bitcoins have a number of advantages.

Advantages of Bitcoins

Bitcoins are transferred from person to person  via internet without going to the bank. This means that the fees are much lower . You can use them in any country. Your account cannot be frozen . there are no prerequisites or arbitrary limits.

How it works

Bitcoins are generated all over the Internet by anybody running a free application called a bitcoin miner. Mining requires a certain amount of works for each block of coin. This amount is automatically adjusted by the network such that bitcoins are always created at a predictable and limited rate. Your bitcoins are stored in your digital wallet which might look familiar if you use online banking. When you transfer bitcoins an electronic signature is added. After a few minutes the transaction is verified by a miner and permanently stored in the network. The bitcoin software is completely open source and anybody can review the code. 

Examples

With the help of bitcoins you can purchase video games, gifts, books, servers, etc where you can trade bitcoins for currencies. Bitcoins are great way for small businesses.It doesn't cost anything to start accepting them, there are no charge backs or fees and you'll get additional business from the bitcoin economy.  

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Post Source: WeUseCoins.