Bitcoin is an innovative payment system that is completely digital and offers clean transactions for its users without the hassle of middlemen. The system is decentralized and supports direct transactions between the users. It is one of the first forms of cryptocurrencies and has a very large market base all around the world. Bitcoins can also be used as exchange for many other products, services and currencies.
Bitcoin network is unique in a way that nobody owns it. The users of this network have control over it. No Developer can modify the protocol as the users have the choice of using different software and versions. The usage and protection of this network works well when all the users consent to the protocols applied.
Much of the trust in Bitcoin comes from the fact that it requires no trust at all because Bitcoin is fully open-source and decentralized. This means that anyone has access to the entire source code at any time. Any developer in the world can therefore verify exactly how Bitcoin works.
All transactions and Bitcoins issued into existence can be transparently consulted in real-time by anyone. All payments can be made without reliance on a third party and the whole system is protected by heavily peer-reviewed cryptographic algorithms like those used for online banking. No organization or individual can control Bitcoin, and the network remains secure even if not all of its users can be trusted.
Like any other program on a computer or an app on the mobile, Bitcoin acts like a personal wallet. As a user, you can send and receive bitcoins.
When a user loses his wallet, it has the effect of removing money out of circulation. Lost Bitcoins still remain in the Blockchain just like any other Bitcoins. However, lost Bitcoins remain dormant forever because there is no way for anybody to find the private key(s) that would allow them to be spent again. Because of the law of supply and demand, when fewer Bitcoins are available, the ones that are left will be in higher demand and increase in value to compensate.
Bitcoin is not a fiat currency with legal tender status in any jurisdiction, but often tax liability accrues regardless of the medium used. There is a wide variety of legislation in many different jurisdictions which could cause income, sales, payroll, capital gains, or some other form of tax liability to arise with Bitcoin.
Bitcoin is freeing people to transact on their own terms. Each user can send and receive payments in a similar way to cash but they can also take part in more complex contracts. Multiple signatures allow a transaction to be accepted by the network only if a certain number of a defined group of persons agree to sign the transaction. This allows innovative dispute mediation services to be developed in the future. Such services could allow a third party to approve or reject a transaction in case of disagreement between the other parties without having control on their money. As opposed to cash and other payment methods, Bitcoin always leaves a public proof that a transaction did take place, which can potentially be used in recourse against businesses with fraudulent practices.
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.
Bitcoins have value because they are useful as a form of money. Bitcoin has the characteristics of money (durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like fiat currencies).
In short, Bitcoin is backed by mathematics. With these attributes, all that is required for a form of money to hold value is trust and adoption. In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, Bitcoin's value comes only and directly from people willing to accept them as payment.
The price of a Bitcoin is determined by supply and demand. When demand for Bitcoins increases, the price increases, and when demand falls, the price falls. There is only a limited number of Bitcoins in circulation and new Bitcoins are created at a predictable and decreasing rate, which means that demand must follow this level of inflation to keep the price stable. Because Bitcoin is still a relatively small market compared to what it could be, it doesn't take significant amounts of money to move the market price up or down, and thus the price of a Bitcoin is still very volatile.
Block Chain is similar to a ledger that allows public sharing on the Bitcoin Network. Processed transactions that are protected by digital signatures are available on this ledger. The users with specific Bitcoin addresses can transact with complete control for sending Bitcoins. Specialized computer hardware allows these transactions to happen and help the user earn Bitcoins as rewards, through a unique service called mining.
Choice and full control – The users of Bitcoin have full control and autonomy of doing their transactions from any place around the globe. Highly secure - As these transactions do not hold any personal information of the users, they are secure and irrevocable. Fees chargeable as per your choice - Irrespective of the transferred amount, there is no charge when you receive bitcoins, you can choose the amount chargeable as per your choice while spending. Open Information – The cryptographically secure block chain allows the users access to all the information in the money supply, which can be verified and used in actual time
As miners are prone to slow down and break down, we ensure compensation of hashpower loss through allocation of relevant pools.
We choose a reliable pool with a good structure. However, we are unable to share the list of pools we use.
Bitcoin payments are easier to make than debit or credit card purchases, and can be received without a merchant account. Payments are made from a wallet application, either on your computer or Smartphone, by entering the recipient's address, the payment amount, and pressing send. To make it easier to enter a recipient's address, many wallets can obtain the address by scanning a QR code or touching two phones together with NFC technology.
We accept the following payment methods:
• Credit card (Visa / Mastercard) - Minimum USD 50. For orders under USD 100 a fee applies.
• bank wires in USD / EUR
• cryptocurrencies: Bitcoin, Litecoin, Dogecoin, Dash
We charge a maintenance fee for our service which covers our regular working overheads.
• Electricity cost
• Maintenance work
• Hosting services
A lifetime contract entitles you to mine and get payouts as long as profits are possible. This does not have a maturity date. The factors influencing the term are dependent on the market value of cryptocurrencies.
When you invest in your own mining hardware, though it might appear to be a cheaper choice, you need to account for various hidden costs as a miner. Some of them are listed below:
Shipping costs: You might encounter shipping costs as many merchants do charge them
Customs dues / VAT: Likely costs of customs and VAT
Delivery time: We transfer you the hashpower almost immediately online. However, when you opt for your own hardware, you might have to wait for it to be packed and shipped, which is causing you lose precious mining hours
Costs for additional equipment: You will end up paying more for your control units, PSU and other specific shelves
Setting the system up: The time you lose on setting up, configuring etc can be used to mine and profit
Maintenance: You will need to account for the failures in hardware, crashes and other outages, which can be quite frustrating. Our 100% Uptime Guarantee ensures stress free mining
Electricity: You will be using a lot of electricity which can add up to your running costs
Only a fraction of Bitcoins issued to date are found on the exchange markets for sale. Bitcoin markets are competitive, meaning the price of a Bitcoin will rise or fall depending on supply and demand. Additionally, new Bitcoins will continue to be issued for decades to come. Therefore even the most determined buyer could not buy all the Bitcoins in existence. This situation isn't to suggest, however, that the markets aren't vulnerable to price manipulation; it still doesn't take significant amounts of money to move the market price up or down, and thus Bitcoin remains a volatile asset thus far.
This works fine. The Bitcoins will appear next time you start your wallet application. Bitcoins are not actually received by the software on your computer; they are appended to a public ledger that is shared between all the devices on the network. If you are sent Bitcoins when your wallet client program is not running and you later launch it, it will download blocks and catch up with any transactions it did not already know about, and the Bitcoins will eventually appear as if they were just received in real time. Your wallet is only needed when you wish to spend Bitcoins.
One of the most common questions or rather statement we get is “but Bitcoin is not legal”. When we inform that Bitcoin is legal and in fact regulated in an increasing number of countries, we can sense disbelief. So below we have mentioned the legal status of Bitcoins in some countries with links.
BITCOIN IS LEGAL AND REGULATED IN USA
- Financial Crimes Enforcement Network (FinCEN), United States Department of the Treasury has classified Bitcoin as a convertible decentralized virtual currency in 2013.
- Global Advisors Bitcoin Investment Fund (GABI) is the first regulated Bitcoin hedge fund to receive regulatory approval from the Jersey Financial Services Commission (JFSC).View article / View article / View article
- New York State Department of Financial Services (NYSDFS) started issuing BitLicense to businesses related to virtual currency activities.
- Coinbase launched the first regulated Bitcoin exchange in the U.S.
- Winklevoss brothers’ Bitcoin exchange, Gemini, had been granted a license by the New York State Department of Financial Services.
- European Union’s top court, European Court of Justice, ruled that exchanging Bitcoin should be exempt from value-added tax in the same way as traditional money.
- Bitstamp to be the first fully licensed Bitcoin exchange in Europe, w.e.f. July 1, 2016. It has been granted the license by Luxembourg Financial Industry Supervisory Commission (CSSF).
- Japan has officially recognized Bitcoin and digital currencies as money w.e.f April 1, 2017. Japan has a new law that will make Bitcoins usable as legal tender.
- Inland Revenue Authority of Singapore (IRAS) has issued tax guidelines for Bitcoins stating that businesses that choose to accept virtual currencies such as Bitcoins for their remuneration or revenue are subject to normal income tax rules.View article / View article
- ABitcoin exchange-traded fund (ETF) is issued by the Bitcoin Investment Trust (BIT), owned and operated by Grayscale Investments, LLC. It trades with symbol GBTC, and is also known as BITShare.
To see the legal status of Bitcoin in all countries, visit: https://coin.dance/poli#legalitybycountry