Bitcoins are the first decentralized digital currency that can be transferred from person-to-person via the Internet without the need for a bank, financial institution, or government body. For the past few years there has been a lot of buzz about the virtual money called Bitcoin. In fact, bitcoin has risen nearly 900% in two years!
How do you participate in this virtual economy?
“Digital miners” create Bitcoins in a similar manner as “physical miners” who find gold to back a traditional currency. However, the “miners” in this case solve complicated mathematical problems – which create the coins – and are then made available for others to use in digital business transactions. Each transaction has a unique digital signature that makes it impossible to forge or re-use the Bitcoins. This virtual money is then stored in your virtual wallet, and used to do business where Bitcoins are accepted.
You can become a miner and mine for Bitcoins, but unless you’re an advanced math whiz, it’s a very difficult process. A more common approach is to exchange your traditional dollars or currency for the Bitcoins. To use them, one must create a digital Bitcoin wallet and receive their first Bitcoin address. Bitcoins can then be purchased through suppliers like www.coinbase.com
A few brand-name businesses that accept bitcoin include:
Similar to PC Points or Airmiles, Bitcoins also feature a rewards program, where you can earn virtual points that can be used to buy things or services from a particular catalog or the money used in specific stores. Bitcoins’ reward scope may actually be one of the largest out there – anyone can decide to accept them as payment, creating endless potential for retailer partnerships!
Bitcoins are a very interesting concept – and there’s no doubt that the world is moving toward virtual transactions. In fact, many of us already use a virtual form of money, whether it’s the number in your bank or the value on your statement!
Keep up-to-date on what’s happening in today’s fascinating world of financials by following our blog! Should you require more information on buying or renting a cash ATM for your business or special event, contact us today at Debit Express!