Let me break it down for you and explain it in the most simplistic terms.
Bitcoin is a form of currency that was created back in 2009 that eliminates the need for a middle man (i.e. banking institutions or credit card processors) to make online purchases. Eliminating this middle man means that there are no transaction fees and it gives you more privacy for your online purchases.
Though each Bitcoin transaction is recorded in a public log, names of the buyers and sellers are never revealed, only within their own wallet IDs. This keeps Bitcoin users’ transactions private. This enables people to buy or sell anything without it being easily traced back to them. With increased fees and governmental invasion on people’s privacy, the increased demand for Bitcoin exists. This is why it has become the currency of choice for people shopping online.
Furthermore, other companies such as Apple are considering and testing their own form of currency for online purchases for their Apple products.
Some of the biggest online stores now accept Bitcoin. For example, Amazon, Target, Victoria’s Secret, and many more are now accepting Bitcoin as a source of payment for online purchases.
Bitcoin is not tied to any country or subject to any crazy governmental regulation. This enables companies to eliminate the stringent fees that normally would occur when a customer makes online purchases. Some people are even buying Bitcoins as an investment, hoping that they will go up in value over time.
Wondering where and how to get your Bitcoins? There are several marketplaces called “Bitcoin exchanges” that allow people to buy or sell Bitcoins using different currencies. CoinBase.com and Cryptsy.com are large Bitcoin exchanges that exist.
Once doing more research online, we anticipate that this industry will evolve and grow over time. The exchange marketplaces allow you to send Bitcoins to each other using apps on their mobile devices or computer. It is similar to sending cash electronically for a wire transfer.
Bitcoins are stored in your so-called “digital wallet,” which exists in either your virtual cloud or on a user’s computer hardrive. Your digital wallet is a kind of virtual bank account that allows users to send or receive Bitcoins to pay for goods or services online. Furthermore, you can save your Bitcoin money as well. Unlike bank accounts, Bitcoin wallets are not insured by the FDIC.
So when making your next online purchase, take a look and see if the vendor accepts Bitcoin as a form of payment. I believe that over time you will see more and more alternative forms of payment for online purchases.
Consider us, BlackBeard Properties, for your next land buying purchase using your hard-earned Bitcoins.
Phil Turturici – Your Pirate Captain