What is Bitcoin?
Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet.
What are the advantages of Bitcoin?
- Payment freedom - It is possible to send and receive bitcoins anywhere in the world at any time. No bank holidays. No borders. No bureaucracy. Bitcoin allows its users to be in full control of their money.
- Real Time Transactions, the international transaction can be executed in less than one hour.
- Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information. This protects merchants from losses caused by fraud or fraudulent chargebacks, and there is no need for PCI compliance. Merchants can easily expand to new markets where either credit cards are not available or fraud rates are unacceptably high. The net results are lower fees, larger markets, and fewer administrative costs.
- Impossible to falsify. In the way it has been built it is not possible to build a fake bitcoin - the network would detect it immediately.
- There is no "experts" reulating comittee controling the destination of bitcoins. Satoshi Nakamoto created a protocol of pre-established rules to accept freely the usage of bitcoins.
- Anonymous. No one is obligued to reveal their identity which makes bitcoin specially useful in countries with totalitary regimen.
- Unexepensive. Bitcoin has lower fees than credit cards, bank transfers, Skrill, Netelleror Paypal. Reducing these costs prevents payments to third parties or non desired charges.
- Safe and secure. Bitcoin has a strong cryptographic backup protecting it against faking and can be saved in multiple locations simultaneously. Its technology makes it more secure than the ones used by banks and credit cards.
- Works 24/7, there are no schedules or holidays.
What are the disadvantages of Bitcoin?
- Degree of acceptance - Many people are still unaware of Bitcoin. Every day, more businesses accept bitcoins because they want the advantages of doing so, but the list remains small and still needs to grow in order to benefit from network effects.
- Volatility - The total value of bitcoins in circulation and the number of businesses using Bitcoin are still very small compared to what they could be. Therefore, relatively small events, trades, or business activities can significantly affect the price. In theory, this volatility will decrease as Bitcoin markets and the technology matures. Never before has the world seen a start-up currency, so it is truly difficult (and exciting) to imagine how it will play out.
- Ongoing development - Bitcoin software is still in beta with many incomplete features in active development. New tools, features, and services are being developed to make Bitcoin more secure and accessible to the masses. Some of these are still not ready for everyone. Most Bitcoin businesses are new and still offer no insurance. In general, Bitcoin is still in the process of maturing.
A Bitcoin wallet allows you to store your Bitcoins safely. A bitcoin wallet works the same way as a physical wallet, where you save your personal items and your money. You must keep your passwords in a safe place, since the holder of the password controls your Bitcoins. A Bitcoin wallet allows you to receive and send Bitcoins without intermediaries. . Digital currency is simply transferred from one wallet to another on each transaction. A bitcoin wallet is possible to have it digitaly on the Internet or saved in your PC.
How are bitcoins created?
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
How much will the transaction fee be?
Transactions can be processed without fees, but trying to send free transactions can require waiting days or weeks. Although fees may increase over time, normal fees currently only cost a tiny amount.
Is Bitcoin anonymous?
Bitcoin is designed to allow its users to send and receive payments with an acceptable level of privacy as well as any other form of money. However, Bitcoin is not anonymous and cannot offer the same level of privacy as cash. The use of Bitcoin leaves extensive public records. Various mechanisms exist to protect users privacy, and more are in development. However, there is still work to be done before these features are used correctly by most Bitcoin users.
Trade Bitcoins with SMFX
In Solidary Markets you will be able to trade your account in Bitcoings. You just need to select one of the trading account types which base currency is BTC.