Bitcoin is an electronic virtual cryptocurrency that can only be obtained and used through the
worldwide web. Bitcoin is independent of the political system. An account opened in bitcoins
cannot be blocked by anyone. Also, no one will be able to impose a ban on actions with this
cryptocurrency. All of this significantly differs bitcoin from other payment systems. It is a peer-to-
peer network that does not work at the expense of the server but at the account of users.
Speaking of what bitcoin is in simple words, it is a virtual currency that is mined by experienced
miners.
Bitcoin capacities
Bitcoin functions are similar to the use of money in any country in the world. Basic:
● Settlement means. It can be used to buy goods, as well as various services. Everything
is paid for using a regular wallet, which is no more complicated than Yandex. Money or
Webmoney.
● Savings tool. You can convert rubles and other currencies into Bitcoin and wait for the
rate to rise. So, Bitcoin is becoming a great investment option.
● The medium of exchange. You can easily convert currency, as well as transfer funds to
other users. It is done simply in a couple of clicks.
Consider Bitcoin as an investment vehicle. It is best to use this option in the long run. Because
in short periods the exchange rate can rise and fall sharply. There is a fascinating fact
everywhere on the Internet: at the beginning of the system’s functioning, an American bought a
pizza for 10 thousand Bitcoins. Now it’s $ 5 million.
What can you buy?
On the Internet and online services, as well as games, the Bitcoin cryptocurrency has become
widespread. You can use them to buy not only the games themselves but also game currency,
etc. Also, some companies in countries where cryptocurrency is not prohibited began to use it.
Now you can buy a plane ticket there. In Cyprus, it became possible to pay for tuition in
Bitcoins. They even train specialists in this area. In Russia, attempts to make Bitcoin a popular
means of payment have failed due to political considerations. But you can shop online in some
stores.
How does it work?
The user creates a wallet, for operations he has his bitcoin address. There can be more than
one address, it is used for transactions. Several bitcoin addresses can be used to increase
anonymity.
You can:
● Create an online wallet. A distinctive feature is the ability to use it on mobile devices.
● Make an offline wallet. A program is installed to store BTC on a PC. If you delete or lose
access – Bitcoins will not be used, and the wallet will not be restored.
Be careful and only trust trusted wallets. There are many scammers out there. So, the reviews
on bitcoin farms are not very good, users recommend immediately deleting them, and transferring
money to others. Almost any Bitcoin forum contains such reviews.
Consider the limitations of Bitcoin
● Each of the mentioned advantages easily turns into disadvantages. For example, the
anonymity of transactions gives complete freedom to carry out illegal transactions, and
this is precisely why the problem arises with the legitimization of the system. Due to the
lack of legality, the system is not widely adopted.
● The second significant drawback is the unpredictability of the system. Besides, bitcoin is
subject to strong fluctuations in the rate, since the price of a cryptocurrency directly
depends on its value. Also, there are no guarantees in the system in case of force
majeure.
You can get bitcoins in several ways: as payment for the goods or services provided, by buying
on an exchange, or by exchanging with an exchanger. Another option is mining, that is, independent
mining of bitcoins.
Bitcoins are spent to pay for hosting and online casinos. Some companies accept bitcoins as
payment. The popularity of this currency is growing. And as it grows, more and more new
opportunities are added.
Disadvantages of Bitcoin
● Attempts to ban mining and the use of cryptocurrency. In many states, the use of
bitcoins is not allowed. In some countries, the state partially or completely recognizes it.
In some countries, it is illegal to issue Bitcoins and other cryptocurrencies. But there is
still debate about the need to recognize the importance of cryptocurrency to the modern
economic system.
● High volatility. Bitcoin prices can rise or fall sharply. The reason is the news affecting
Bitcoin, as well as the reaction of Internet users to them. Therefore, investment risks
remain.
● Limited use. On the one hand, bitcoins can be used in any way, and you can buy
anything. On the other hand, you cannot use it in stores. Online stores are also not
ready to add such an opportunity. It largely depends on politics.
● Insufficient prevalence of cryptocurrency in some countries. Not many users know about
Bitcoin and the main features of the currency. Usually, those who work in the IT field,
economists, brokers, and others face it.
The advantages of Bitcoin outweigh the disadvantages of this payment system, but there are
still many problems. It is both the uncertainty of the authorities and the low interest in the
extraction/use of cryptocurrency among users. But Bitcoin still prophecies stability and
