Yesterday I got contacted by one of my readers and he was interested to know more about Bitcoin. My fault that lately I have not posted that much about Bitcoin and I decided to post article about Bitcoin already today.
In simple words Bitcoin is virtual currency what is not controlled by any institution and have no physical location. Unlike government issued fiat currency what is printed on paper and controlled by national bank or similar institution Bitcoin is controlled by no one. Basically behind Bitcoin stands just people’s trust, they trust this virtual currency and use it. Important is not only that there is no one who is controlling it, but also it uses P2P network making it de-centalized, so if someone want to shut Bitcoin network down they must shut down whole internet what makes it impossible to do.
More and more HYIPs are accepting Bitcoin, I see that more and more investors start to use Bitcoin as well. Although there is many pros for Bitcoin there is also cons for it and I still think that HYIP industry is not really ready to switch towards cryptocurrency.
When Liberty Reserve collapsed then seemed like there is no other e-currency player what could take its place and I hoped that admins will try to implement Bitcoin or some other cryptocurrency in their HYIPs. More then a half year is gone and we see that Perfect Money is new Liberty Reserve and only some fraction of HYIPs use Bitcoin.
One of the biggest cons for Bitcoin use in HYIPs is floating exchange rate. Bitcoin for long time was with quite stable exchange rate, but now since many Forex (real Forex, not HYIP) start to accept it and allow to manipulate with it then exchange rate is manipulated by traders whole time what makes it almost impossible to use it for daily HYIP transactions.
Yes, there is HYIPs who are accepting Bitcoin. They are calculating value of what you should send or receive by multiplying with exchange rate in that particular moment when you make transaction. In short – if you make withdraw in morning you can receive less or on the other hand more Bitcoin then if you would do withdraw in evening. Floating exchange rate is making Bitcoin almost impossible to use in HYIPs.
I see that there is one possibility to use Bitcoin in HYIPs. HYIP X accept just Bitcoin and do not make calculations with exchange rate, you invest for example 1 Bitcoin and it pays you 0.10 Bitcoin for 12 days. In this case Bitcoin can work out, but still there is not that much players who play just with Bitcoin. If governments will shut down Perfect Money and all other popular HYIP payment systems then HYIP industry can move towards Bitcoin, but it is highly unlikely that it will happen soon.
Bitcoin seems so difficult, but using it is actually simply. Thanks to many online Bitcoin wallets, now Bitcoin is accessible almost to anyone. I posted some words how to use it, read about it below.
How to obtain Bitcoin?
Before you try to get/buy some Bitcoin then you must have Bitcoin wallet at first. I’m using and I personally suggest to open wallet in blockchain.info. It is easy and simple service, after one minute your wallet will be ready. Yes, there is people who are concerned about their privacy, if you are one of them you can choose desktop wallet, find more information here. When you have Bitcoin wallet you can exchange Bitcoins from several exchangers by paying with your local currency – dollars, euros, or any other local currency what your country use. If you want to know exactly where you can buy Bitcoin in your country use this handy webpage – howtobuybitcoins.info. When you will buy Bitcoins you will receive them most likely in some business hours, it depends on your bank and merchants bank. Always check exchange rate, some merchants are selling them overpriced and buying them way under market value, check real time Bitcoin rate here.
How to pay with Bitcoin?
One of the biggest reasons why I like blockchain.info is because not only they offer web wallet, also you can download application for you smartphone and pay with Bitcoin in easy way. When you will try to make deposit/payment most likely on screen will pop up QR code what you can scan with your phone or you can just copy Bitcoin address and pay “manually”. Yes – it is simple as this.
How to withdraw it back to my bank account?
It is the same as you bought them, check website where you bought them and you can sell them later back in the same place. Always check exchange rate, some merchants are selling them overpriced and buying them way under market value, check real time Bitcoin rate here.
What else you should know?
First of all you should know that Bitcoin transactions are not instant. They can take up to 30 minutes to be confirmed in Bitcoin network. Bitcoin is anonymous until some moment – until someone know that some given Bitcoin address is used by you. Yes, all Bitcoin transactions are visible in Bitcoin network, but if you have nothing to hide then you do not need to worry about that. It is important to know that there is almost no transaction fee, yes in most Bitcoin wallets you pay some slight fee like 0.005 BTC what is absolutely nothing and we can surely say that there is no transaction fee.
Bitcoin topic is so wide that it is not really possible to cover it in one or in ten articles. I hope I gave some slight insight about Bitcoin for readers who joined Jss3-Id.com just now and who are not familiar what Bitcoin really is. I hope to see more and more programs accepting Bitcoin in future, but I understand that most of admins are using already developed scripts like Goldcoders and industry will move only towards Bitcoin or some other cryprocurrency only when “popular” scripts will add it in their infrastructure.