How Bitcoin Works

A decentralised type of crypto currency is bitcoins. In other words, they are not governed by a financial institution or the state. As such, you do not need a long list of documents such as an ID, unlike a conventional bank account in order for you to create what is known as a bitcoin wallet. You can use the Bitcoin wallet to access your Bitcoins and to transfer Bitcoins to other people. original site
How to configure an account
A bitcoin broker such as Coinbase may acquire a bitcoin wallet. When you open a wallet through a licenced broker, a bitcoin address is given to you, which is a series of numbers and letters, similar to a bank account account number and a private key, which is also a series of numbers and letters that act as your password.
How does Bitcoin function as an anonymous processor for payments?
With bitcoins, you can do 3 things, make a purchase, give money anonymously to someone or use it as an investment. Bitcoins have been accepted as a form of payment by more and more merchants. You effectively make the transaction anonymously by using Bitcoins instead of cash. The same goes for sending money, based on the idea that you don’t have to apply a mountain of payment to build a bitcoin anonymously for you, you can literally transfer money anonymously to anyone else.
How does Bitcoin as an investment work?
Occasionally, the price of a bitcoin fluctuates. Just to put it in perspective, back in the beginning of 2013, the average price of a bitcoin was about $400 per bitcoin, but by the end of 2013, the price for bitcoin rose to over $1000. This meant that if at the beginning of 2013 you had 2 bitcoins worth $800 and you deposited them as an investment by the end of 2013, those two bitcoins would have been worth more than $2000 instead of $800. Because of the fact that its value fluctuates, several individuals store bitcoins.
Bitcoin Casino and Sites for Poker
The gambling business has taken up bitcoin as a payment mechanism due to the privacy of bitcoin. Bitcoin casinos and bitcoin poker sites are also coming to life and offering their players withdrawals, playing at the tables with bitcoin and withdrawing straight to their bitcoin wallet. It guarantees that there are no taxes or opportunities for government influence. You don’t need to register anywhere and all your transactions are anonymous, just like a typical Nevada casino.