Dec 07, · Bitcoin serves as a new kind of currency for the digital era. It works across international borders and doesn't need to be backed by banks or governments. Or at least that was the promise when it. Contents [ show] The bitcoin system, along with all of the alt-coin cryptocurrencies that operate on it, uses a form of technology called a blockchain. This technology uses complex algorithms to verify each transaction, and also creates an ongoing ledger of every transaction that has ever occurred in chronological order. Apr 18, · Bitcoin, being a digital currency accessed online, is naturally more of a fit for being used via websites than via actual stores. And indeed, there are many more options for spending your bitcoin Author: Steve Fiorillo.
What uses for bitcoinThe 10 Most Important Cryptocurrencies Other Than Bitcoin
In addition to all of this, you can enjoy all of these benefits completely anonymously. All of these combined make it pretty clear why Bitcoin was seen as such a revolutionary invention when it was first proposed. The unique system that cryptocurrencies operate on make them much better for many specific uses than any other form of payment. One of the very first times that bitcoins were seen as the best way to pay for something was in , when WikiLeaks was no longer able to accept donations through Paypal or credit cards.
Often times individuals wish to support causes that either the government or major organizations make it difficult to send money to. In addition, there may be a need to make donations anonymously in order to not have your support for those causes affect your professional or personal life. These are the perfect times to use cryptocurrency in order to send funds without the need to worry about your identity being discovered. Regardless of the intentions in mind when the bitcoin system was created, there is one major use for cryptocurrency that was all but inevitable.
Due to the nature of cryptocurrency, bitcoins and other alt-coins are seen as an ideal form of payment when purchasing illegal goods and substances. This began in earnest in , when highly publicized warnings about the possible use of Bitcoin to purchase drugs backfired, and instead drove more traffic to the questionable websites facilitating these illegal exchanges.
We now know and understand more about how bitcoins and the blockchain work, and it is actually much easier to trace these nefarious purchases than anyone originally thought. Despite this, the use of cryptocurrency for illegal purchases is still prevalent today. This allows users from all over the world to gamble online using bitcoin, regardless of what the laws regarding gambling may be in their particular location.
As of right now, users still have to create accounts and register on these gambling websites in order to partake in their digital games, but the technology used by cryptocurrencies is built in such as way that even more advanced and anonymous systems for placing bets and receiving payouts are possible.
Just as cryptocurrencies can be used to purchase illegal substances and other regulated items, they are also commonly used to pay for services that are frowned upon, either because they are illegal or simply because they are seen as culturally unacceptable.
The most common unseemly services that fall under this category are escort and cam services. Users can pay for these types of services using cryptocurrency with very little risk of being discovered. One possible reason that a person may want to do this is to hide their net worth from a potential spouse or business partner. Instead of the awkward but more up front practice of asking for a pre-nuptual agreement, some people may opt instead to simply hide a large portion of their true assets by storing them as bitcoins.
An obvious example is in the case of hiding assets for tax purposes in order to avoid paying taxes on the hidden funds. The true beauty of the Bitcoin system and all of the cryptocurrencies built from it is its decentralization. Well, when an economy, or even an entire government, rises or falls, the value of cryptocurrencies will be largely unaffected. While it will still be effected in indirect ways, it will be much safer than all of the government tenders like the USD.
The indirect ways in which bitcoin would be effected are related the companies that may rise and fall with these governments or economies.
For example, if there as a large fluctuation in the value of the USD, that change itself would not directly have much effect on the value of cryptocurrencies. However, this fluctuation would likely cause major issues for large companies like Microsoft.
Despite the many questionable uses for cryptocurrencies, the true beauty of them is that they allow for true collaboration between users no matter where they are in the world without any concern for regulations or currency exchange issues.
This means that individuals and groups can work together on amazing projects without needing to be in the same country. The fact that the true identity of the creator of Bitcoin, a person or group of people who go by the name Satoshi Nakamoto, is still a mystery is proof of the amazing possibilities of this concept.
There are many who think that the creator is actually a group of people posing as a single individual, and the world may never know the truth about who invented this amazing technology. They are convenient and easy to use, so you don't need to be particularly tech-savvy.
You simply register, transfer your Bitcoin, and then log on to manage your wallet. Because of the security risks with web wallets, it's much better to go with a hybrid wallet, such as Copay, that can be used across multiple devices and provides additional layers of security not found on basic web wallets.
Download a software wallet if you want more control. Software wallets, as the name implies, require you to download software on your computer. Once the software is downloaded, you don't have to rely on third-party services to complete Bitcoin transactions. The blockchain can take as long as 2 days to download, depending on your connection speed. You may want to download the wallet on a dedicated computer. However, it does offer better security and privacy because it doesn't rely on external servers and all transactions are routed through Tor.
Armory is a secure software wallet with more features than Bitcoin Core, but it's also technologically complex and can be intimidating. Invest in a hardware wallet for increased security. Hardware wallets, also referred to as "cold storage," are small devices that are designed to be a Bitcoin wallet and nothing else.
Since no software can be installed on them, they represent the height of security. You don't have to buy the most expensive hardware wallet to get the best security. If you have an old iPhone brick just lying around collecting dust, you can wipe it and install nothing but a mobile wallet app, such as Breadwallet, and use it as a cold storage device as well. Print a paper wallet for secure long-term storage. Paper wallets are cumbersome if you plan to use your Bitcoin frequently in the short term.
However, if you're just buying your Bitcoin to hold it for a long period of time as an investment, it will be most secure in a paper wallet. Since your Bitcoin is totally offline, it is completely secure from hackers.
However, you have to scan the codes to regain access to your funds. While a paper wallet secures your Bitcoin from hackers, keep in mind that it's also paper, which means it's still vulnerable to fires, floods, and anything else that could destroy paper such as a hamster or a teething puppy.
Keep your paper wallet in a locked, secure location. Keep your wallet secure. No matter how secure your wallet is, you can still make it more secure. Make regular backups of your Bitcoin wallet, and store multiple backups in multiple places so you still have access if one is destroyed. You could keep a backup in the glovebox of your car as well.
You might also consider leaving a backup in the care of a trusted friend or family member. If you have a paper wallet, you can print multiple copies to keep in different places as backups.
Create public and private Bitcoin addresses. Your public address allows you to receive Bitcoin from other people. The private address is the one you'll use to send Bitcoin to others. Public addresses are a stream of about 30 random alphanumeric characters that start with either a "1" or a "3.
By scanning the code, you can easily pay for products and services. All rights reserved. This image may not be used by other entities without the express written consent of wikiHow, Inc. Use your public address to transfer your Bitcoin to your wallet. The public address is a version of the public key similar to a bank account number. Once you've set up your wallet, use this public address to send the Bitcoin you've purchased to your wallet.
Select that option, then enter the public address of your wallet as the place to send your Bitcoin. It may be several hours before your Bitcoin shows up in your wallet. Method 3 of Transfer the Bitcoin you want to use to an accessible wallet.
If you're buying something online or simply paying an individual in Bitcoin, you may be able to copy the information you need to complete the transaction from any type of wallet.
However, if you want to pay for goods and services in person, you'll need to have Bitcoin in a wallet you can access on the go, such as a mobile wallet. To use your mobile wallet, make sure it's compatible with the app the merchant is using. When you download the mobile wallet app, it will tell you which services it is compatible with. Copy or scan the payment information. The individual or merchant you want to pay will give you the public address for their wallet or account. From your wallet, you'll send your Bitcoin to this address as payment.
Because Bitcoin value is volatile, this invoice will only be valid for a brief window of time — maybe 10 or 15 minutes. Many individuals and merchants provide a QR code that you can simply scan with your phone from your mobile wallet app to send your Bitcoin to the right place.
Send your Bitcoin to the address you copied. Within your wallet app, choose the option to send your Bitcoin to another wallet. Enter the payment information the individual or merchant gave you along with the amount of Bitcoin you want to send them. Then tap or click the button to send the Bitcoin. Look over it before you click send to make sure the amount of Bitcoin is correct. Wait for the transaction to be confirmed. Once you submit your payment, the transaction is sent to the blockchain for confirmation.
Miners Bitcoin users with powerful computers work to confirm the transaction. Typically it takes 10 to 30 minutes to confirm a transactions.
If you're buying something from a brick-and-mortar merchant, you'll likely get whatever you bought before the transaction is actually confirmed. However, you may be sent another invoice for payment if the transaction isn't confirmed or if it takes several hours to confirm.
Method 4 of Trade your Bitcoin for other cryptocurrencies. Some of the newer cryptocurrencies, such as Ardor, can only be bought with another cryptocurrency. Trading your Bitcoin enables you to diversify your cryptocurrency holdings. Make online purchases using Bitcoin. Many online retailers and service providers, including Overstock, Microsoft, and Newegg, accept Bitcoin as payment.
When you're browsing an online shopping site, look for the Bitcoin logo. The number of retailers and service providers that accept Bitcoin is growing every day, so if one of your favorite sites doesn't accept Bitcoin now, that might change. You may also want to send a suggestion to their customer service center requesting that they accept Bitcoin.
Convert your Bitcoin into gift cards. Led by the website Gyft, there are many gift card websites that accept Bitcoin as payment for gift cards to major online and brick-and-mortar retailers, including giants such as Amazon, Starbucks, and Target.
Pay for services or subscriptions with Bitcoin. Online services such as VPN networks, domain name registers, and internet service providers often take Bitcoin payments. Many websites also allow you to use Bitcoin to buy subscriptions or premium services. You can also subscribe to Bloomberg, the Chicago Sun-Times, and other online newspapers. If you have a blog on WordPress, you can use Bitcoin to pay for additional services and blog options.
Hold your Bitcoin and wait for its value to increase. Because cryptocurrencies are volatile, holding Bitcoin as an investment can be fairly risky.
However, if you're willing to watch the market carefully, you may be able to make a profit. Most of these sites and companies are scams or pyramid schemes.
You may see a good rate of return for a few months, but then it will drop to nothing. You can day trade with Bitcoin just as you would day trade with stocks or other commodities. However, this is a method that requires knowledge and practice to be successful. Make charitable donations in Bitcoin. There are numerous charities and nonprofit organizations that accept donations in various cryptocurrencies, including Bitcoin.
Find local merchants who accept Bitcoin. While the transaction costs and slow confirmation times make Bitcoin an inconvenient payment method for brick-and-mortar merchants, there are still some who accept it. However, there are still major retailers who accept Bitcoin payments. Did you know you can read answers researched by wikiHow Staff? Unlock staff-researched answers by supporting wikiHow. Not Helpful 0 Helpful 0.
Not Helpful 0 Helpful 3. Most want you to invest larger amounts of money. Not Helpful 1 Helpful 3. How do I know the exact quantity of bitcoin for certain amounts of money, say USD? The price of bitcoin is constantly changing. As of Feb 6, the answer would be.
Not Helpful 7 Helpful Unanswered Questions. How do I cash out my bitcoin to US dollars? Include your email address to get a message when this question is answered. By using this service, some information may be shared with YouTube. A Bitcoin is infinitely divisible. You don't have to buy or use 1 Bitcoin. It's possible to use or send. Helpful 0 Not Helpful 0. Bitcoin is often believed to be totally anonymous. However, the current version of Bitcoin is pseudonymous and somewhat trackable.