Bitcoins

Since its official public release in 2009, Bitcoin has become a worldwide platform that’s best suited to recording online transactions within a peer to peer platform without the use of banks or other intermediaries and has now taken off in Australia.

Making a transaction with Bitcoin is fairly simple as long as you know where to buy Bitcoins. The first thing that a user would need to do is to download a reliable piece of Bitcoin software. This piece of software will provide its users with the ability to pay for any and all of the products, services or sales listed by people from around the world, before allowing them a method of digital payment using secure, encrypted servers.

One of the most important things to bear in mind is that Bit coin isn’t actually a real form of hard currency money, yet. This means that they only exist digitally and cannot be stored on a hard drive, USB stick or anywhere else for that matter. The only part of a Bitcoin that exists is the record of a transaction. These transactions cannot be falsified or used for fraudulent purposes, as Bitcoins are merely used for digital purchases and do not account for any form of physical currency. All that will happen is that a person’s balance will increase and decrease as they send and receive Bitcoins.

As a Bitcoin user, you’ll have access to something referred to as a Bitcoin wallet. This is where all digital Bitcoins (or information on them) are stored. During a transaction, there are three pieces of information that are provided to the buyer and the recipient. These pieces of information are first the Bitcoin address of the payment sender, secondly the amount of Bitcoins that have been transferred and finally the recipient’s Bitcoin address.

As a Bitcoin user, you’ll need two things to make a transaction. The first is a Bitcoin address and the second is your private key. These items don’t work like bank accounts, in fact they are very easy for anyone to set up. Your address will be generated using a random algorithm which will guarantee that your details remain unique to your account, with your private key being generated using the same technique. The difference between these two forms of identity is that your private key will always remain private to you.

Once you have both of these pieces of information, a user can simply log in, locate another user and then transact with them by transferring Bitcoins as payment for services or products. Once the transaction process has begun, the digital currency (Bit coins) will be transferred from one user’s wallet to another’s. The only thing that a user will be expected to do is to select their recipient, input the amount of digital currency to transfer and then confirm the transaction. They will then be able to make use of the digital services or products that they’ve paid for as soon as the transaction clears.