(December 15, 2020)--Most of us have heard of cryptocurrencies like Bitcoin before, but what are they? And are they safe to use? If you want to know more about this type of cryptocurrency and whether you should consider using it in 2021, then keep reading below.
What is Bitcoin?
Cryptocurrencies have been a hot topic of conversation over the last few months - the most popular of them being “Bitcoin”. Bitcoin was the first type of cryptocurrency ever to be introduced in the world. It’s a digital currency that isn’t controlled by a centralized bank. Instead, it’s decentralised, meaning that transaction records and receipts are split up onto numerous servers around the world using technology called a blockchain. It is essentially a list of records that are securely linked together using cryptography. This provides an extremely high level of security, as transaction records can only be changed by making changes to all future records.
This type of currency exists only as data. Unlike a regular currency, it has no physical assets to give it value. This makes it vulnerable to the sort of speculative bubbles that cause quick changes in its value. Bitcoin is well known for its volatile market value and can suddenly decrease or increase depending on what's happening in the world at the time.
Is it Safe to Use Bitcoin?
Since it was first introduced over ten years ago, bitcoin has proven itself to be a trustworthy financial instrument when it comes to storing values, transferring money and accessibility.
While you may have heard some horror stories about hackers stealing Bitcoin money, most of these hacks were due to third party service providers like wallet developers, centralised exchanges or private key mismanagement. In fact, if Bitcoin is used correctly, the protocols they currently have in place are strong enough to stop even the most sophisticated hackers stealing your money.
Of course, like all other types of money, there are a few things that Bitcoin users should remember if they want to protect their money. This includes the safe storage of cryptocurrency, the use of insecure third parties, cybersecurity threats like hacking and the Bitcoin price volatility.
At the same time, we should also remember that Bitcoin is still safer to use than traditional money. In fact, research has shown that most money laundering and other nefarious activities are conducted using traditional real money and not cryptocurrency. Therefore, it’s safer to use Bitcoin than it is to use traditional currency.
Popular Places to Spend Bitcoin
More and more businesses around the world are starting to accept payments using this cryptocurrency. Now that you know that it’s safe to pay for goods and services using cryptocurrencies, here are a few of the popular ways in which you can spend them:
- Making travel arrangements.
- Bitcoin gambling sites – Bitcoin gambling sites have never been more popular. Not only are they safe and secure, but they don’t ask for your personal information either, meaning you can keep any winnings to yourself. If you want to know more about Bitcoin gambling then click here.
- Shopping online.
- Buying gift cards.
- Purchasing movies or games.
- Some restaurants and bars.
Lots of people around the world are still wary about using Bitcoin or other cryptocurrencies. They believe that this type of currency is unsafe and can easily be accessed by thieves, scammers and terrorists around the world. However, this isn’t the case. In fact, Bitcoin is one of the safest ways to spend money online and it’s getting better every day. Why not look into whether Bitcoin can benefit you?