Bitcoins are earned in many different ways. It may not be widely used as of the moment, but more individuals are becoming aware of the advantages of the Bitcoin software.
1) Form of payment
Bitcoin exchange between buyers and sellers is the most common way to accumulate Bitcoins. These days there are business establishments that accept Bitcoin as a form of payment, apart from credit card and PayPal. A user can find a Bitcoin directory so he can check which establishment accepts Bitcoins.
2) As salary
for those who are new to the Bitcoin software, you will be surprised to learn that there are entrepreneurs who pay their employees in the form of Bitcoins. These are deposited in their Bitcoin wallet.
3) Buy Bitcoins
there is also the option of buying Bitcoins. A user can use his dollars or euros to purchase Bitcoins. A directory of Bitcoin sellers is available online.
miners are rewarded with Bitcoins. These miners are the ones who take care of the block chain. They are rewarded with Bitcoins for the transactions or Bitcoin exchange. The miners need to solve an extremely difficult mathematical algorithm.
Confused about how miners approach the blockchain programs? Well, they have to invest in the hardware or join the pools. Several affordable vendors like CoinMiningDirect are progressing with their support for the best Bitcoin miners suitable to pocket and use. You can go through CoinMiningDirect review statements to check out their fame.
If you wonder why there are people who are attracted to the Bitcoin software, it is because of the many beneficial features. First, there is the anonymity factor. A user’s personal information is not required for downloading the software or the app. Then a user is likewise not required to open up his personal and private information for a Bitcoin wallet application. There is anonymity and there is no bias involved.
A user is not required to say how much he earns in a year. In banks, an application can only be approved if the banks think that a person is qualified based on his personal information.
The second feature of the Bitcoin software that makes it attractive is the lack of jurisdiction of the government over it. In this way, the Bitcoins stored in the wallet is tax free. For every transaction or Bitcoin exchange transaction, a user does not have to pay some fees or taxes. If a user opts to pay an online transaction using his Bitcoins, he does not have to shell-out additional costs compared to PayPal or other services. In a way, it is cheaper and more convenient.
The third feature of the Bitcoin software is that a user can send and receive Bitcoins in any amount. If a user wishes to purchase a car using his Bitcoins, he has the right to do so. There is no limit as to how much a user can send. He has the full jurisdiction over his money. He can do whatever he wants with it without any limit, unlike in banks or credit cards wherein a certain ceiling is required.
Another feature of Bitcoin is the convenience for constant travelers. Monetary exchange rate agencies do charge extra for every money exchange. Since Bitcoin is gaining popularity across the globe, a traveler does not need to bring cash with him. He can carry his virtual money on his smartphone. There are more shops and restaurants around the world that accept Bitcoins as a form of payment. Thus a traveler can save money on the surcharges that are applied for money exchanged.
Of course, the Bitcoin software has also its faults. It is fairly new and it is still open to all sorts of vulnerabilities. The question of volatility is the issue regarding Bitcoin exchange. The value of the Bitcoin is not as stable as compared to currencies and because of this issue; it can fluctuate drastically in a matter of days.
Merchants need to adjust the prices according to the value of Bitcoins. It can be likened to the stock market and a user is in a way gambling his Bitcoins. A user must always be on top of everything and watch closely the Bitcoin exchange rate.
If a user wants to use his Bitcoins as a form of long-term investment, then factors such as hacking must be his utmost consideration. Bitcoin exchange is not regulated by the government and in case a hacking incident happens, the government cannot come in between the user and the Bitcoin bank.
In a very recent news, the first ever Bitcoin bank, Flexcoin, became a victim of hacking activities. The users lost all the Bitcoins that were placed in the hot wallet. By hot wallet, it means that the Bitcoins are available online and users can transact or do Bitcoin exchange with these Bitcoins placed in the hot wallet.
On the other hand, those Bitcoins that were placed in the cold wallet or storage were not stolen. This is because these Bitcoins are not online and the hackers were not able to access them.
The bad news is that the users cannot do anything about it. It is a lost investment and there is no one to help them except themselves. The Bitcoin software is still at its advent stage and there are still a lot to learn from all these hacking incidents.
In fact, there are news that even before Mt. Gox filed for bankruptcy, there were already reports of theft and hacking in the Bitcoin exchange. About seven hundred thousand worth of Bitcoins were already lost from theft and hacking. This figure is the one that is reported, but there are also speculations that other users may have lost Bitcoins but they have not reported it to the authorities because they know that the Bitcoins lost cannot be redeemed because of lack of a regulating body.
There is also the issue of malware. This is created to infiltrate the Bitcoin software and steal money from the Bitcoin wallets. There are about one hundred malwares that were reported last year.
The Bitcoin exchange can also be a safe haven for the criminals. There is news that Bitcoins are being moved to funds criminal activities. It is also used in high end gambling activities.
Regulating Bitcoin Exchange
Due to the recent negative news about the Bitcoin software, there are talks on regulating Bitcoin to protect the public from fraud and to put a halt to illegal activities with the use of Bitcoins, like the transfer of drug money and the possible funding of terrorist activities. The features of the Bitcoin software are the reasons why drug dealers can easily transfer funds because of the lack of limit of Bitcoin exchange. Add to that, the true identity of the Bitcoin user is difficult to identify.
In Singapore, the government is seriously considering regulating Bitcoins after Mt. Gox filed for bankruptcy. The Bitcoin users must have some kind of protection from the government. There are speculations that those in the underworld business were able to generate so much Bitcoins that could amount to as much as five hundred million dollars’ worth of Bitcoins. It is an activity that could be difficult to thwart without government intervention. It is growing and in spite of the negative news surrounding Bitcoin exchange, it is able to withstand all adversities.