Bitcoin is a new form of electronic currency that is very similar to traditional currency in its function and use, except that it is not in a physical form but exists digitally.
Satoshi Nakamoto, an alias for an unknown person or group of people, created the Bitcoin in 2009. The novel idea behind creating such a form of currency was to create a medium of exchange that did not require a third party or central body.
Bitcoin can be used as a means of exchange for goods and services. It can also be traded for other cryptocurrencies in an open market in similar mediums like the stock and forex markets.
It has some unique and very attractive qualities:
- It is Decentralized:
Unlike the banks, no single institution controls the Bitcoin network. It is maintained by a group of volunteer coders and run by an open network of dedicated computers spread around the world.
- It is Global:
Bitcoins can be sent across the world. There are no limits on the amount that can be sent and no laws restricting it.
- Bitcoin Transaction Fees are Cheap:
The fees charged for sending Bitcoin is almost negligible. From as low as ₦10 to ₦100 for any transaction. This makes it attractive to individuals who are burdened by credit card and bank charges when making transactions.
- Supply is Limited:
Unlike traditional fiat currencies such as USD, EURO, NAIRA etc have an unlimited supply. Central banks can print as much as they want and flood the system, trying to manipulate the currency’s value in relation to others.
Bitcoin, on the other hand, is tightly regulated by the underlying algorithm controlling it. Just a few new coins are produced every hour and based on the algorithm, this value will continue to reduce until a limit of 21 million coins has been produced. This ultimately increases the value of the coin.
- Personal Information is kept Private:
In carrying out transactions with Bitcoin, there is no paperwork to be done or validation process carried out just like in the traditional banking system. All that is needed in Bitcoin transactions are the addresses which the system verifies and uses to approve the transaction.
- It Cannot Be Reversed:
Unlike online transactions, credit cards, and digital payment systems that can be reversed by the sender, Bitcoin transactions cannot be reversed by the sender.
- It is Secure:
The Bitcoin network runs on a cryptographic network and hence makes it more secure than the more regular credit card/online transactions. No sensitive information is released during a transaction, there is a very low risk of your financial information being released over the internet or having your identity stolen.
You can buy and sell bitcoin, swap it with fiat currency (naira) and vice-versa, instantaneously on the Kurepay app without stress at very good market rates.