What is Bitcoin?
Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction . . .
fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.
fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.
Why Bitcoins?
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.
Acquiring Bitcoins
Owning Bitcoins
Bitcoins are stored in a “digital wallet,” which exists either in the
cloud or on a user’s computer. The wallet is a kind of virtual bank
account that allows users to send or receive bitcoins, pay for goods
or save their money. Unlike bank accounts, bitcoin wallets are not
insured by the FDIC.
Wallet in cloud: Servers have been hacked. Companies have fled with clients’ Bitcoins.
Wallet on computer: You can accidentally delete them. Viruses could destroy them.
Wallet on computer: You can accidentally delete them. Viruses could destroy them.
Anonymity

By: Tal Yellin, Dominic Aratari, Jose Pagliery / CNNMoney
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