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Payment In Bitcoin: How Does It Work

In today’s post, we will talk about payment in Bitcoin. This virtual currency continues to appreciate and is increasingly included in real-world transactions as many companies are adopting cryptocurrency.

Bitcoin And Cryptocurrencies

Cryptocurrencies are virtual currencies that do not exist in a material form like those we use daily, made of paper money or even disc-shaped coins composed of steel, bronze or other elements.

Another characteristic of virtual currencies is that they are not linked to any nation. This means that governments have no control over them, as, for example, the real is controlled by the government and the US dollar by the United States government.

And How Does It Work In Practice?

In practice, cryptocurrencies rely on the cryptography system, a word that comes from Greek and can be translated as “hidden writing”. When it comes to technology, it is a system that guarantees security in transactions. 

Because they are encrypted currencies, they were called cryptocurrencies, with Bitcoin being the most popular among them. Ethereum, Ripple and Zcash are other examples available for transactions.

What makes Bitcoin more popular is that it is the most valued virtual currency today, in addition to being the first to be launched, a fact that happened in 2009.

At the time, the creation was associated with a person called Satoshi Nakamoto, but after much speculation, it was concluded that there is no “official creator”.

Cryptocurrency Storage

Just as our physical money can be stored in a wallet or invested, cryptocurrencies are stored in virtual wallets and can also be part of the composition of financial investments.

Virtual wallets are called Wallets, and transaction information is stored in the Blockchain. This database allows you to verify the existence or, better yet, carry out the conference of negotiations publicly, reserving the identity of those who carry out the transactions. That’s right, transactions are carried out anonymously.

Although we have commented on the virtuality of cryptocurrencies, storage, the means of ensuring that a certain amount of Bitcoin, for example, belongs to a specific person, can take place in the following ways:

  • online storage: via websites that offer storage services;
  • offline storage: a physical paper document with a public address and private key (Bitcoin paper wallet);
  • desktop: software downloaded directly onto the computer;
  • applications: app options that are downloaded to the cell phone;
  • hardware wallet: a physical device connected to your cell phone or computer.

It is essential to highlight that, just as the user is responsible for managing/transacting cryptocurrencies if he loses his keys, he has no one to turn to.

Therefore, choosing the storage method carefully and taking the necessary precautions to ensure information security is essential.

Advantages Of Making Payments In Bitcoin

We could say that the first significant advantage of making payments in Bitcoin is precisely being able to overcome the global barriers in traditional systems, such as fees, specific credit cards or exchange rate changes between currencies, just to name a few.

As it is a decentralized currency, as initially stated, people can pay for products and services anywhere in the world that accepts payments via Bitcoin.

The payment method is also straightforward because there is no need for registration or other complexities required by other payment methods.

The digital wallet’s QR code and a scan with your cell phone are sufficient. It is also possible to carry out transactions using NFC (Near Field Communication) technology by bringing two cell phones together.

Just as there is no payment barrier between countries, time is also not a difficulty, as payments or receipts in Bitcoin can be made on any day and time. 

Finally, we highlight the security of encryption technology as a very relevant advantage.

Companies That Accept Payments via Bitcoin

Nowadays, many companies around the world accept this form of payment. Some of them are: 

  • Visa;
  • Microsoft;
  • Starbucks;
  • Burger King;
  • PayPal;
  • among others. 

Quickly and from anywhere worldwide, you can complete the transaction via cryptocurrencies and start studying! 

Conclusion

As you can see, Bitcoin is a digital currency increasingly consolidating itself in the market, reflected in the growth of product and service companies that accept payments in Bitcoin. 

Also Read: Bitcoin And Blockchain: How Cryptocurrency Work

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