Bitcoin (BTC) is the world’s first decentralized digital currency. It is created and stored electronically. It is “digital money” that can be sent over the Internet and serves as a means of payment.
Bitcoins do not exist physically (there are no bills or coins), but the “digital money” is cryptographic algorithms. A complex mathematical system.
Unlike all other currencies, Bitcoins have no central institution. Consequently, there is no one to issue or manage the money. No central bank, no state and no group. Since Bitcoins are mathematically limited to 21 million pieces, this currency is also protected against inflation and also serves as a wealth investment.
A Bitcoin transfer is peer-to-peer (from participant to participant), which means that no bank, state or financial institution stands in between. Thus, the transaction takes place directly from A to B. There is no detour via a bank or a clearing house, such as Master Card, Visa, a bank or even a state.
On the one hand, this brings some advantages:
– fees are much lower
– sending is possible worldwide in the shortest time
– your balance is anonymous and cannot be seen by anyone
On the other hand, you have to be aware of one thing:
– Between the owner of the Bitcoins and the money (Bitcoins) there is no bank or clearinghouse in between. You are responsible for the safe management of your money yourself.