What is a Bitcoin?

Update - can you buy bitcoins with UK paypal? Find out at the home page of this site.

In the simplest terms, a bitcoin is a type of digital currency that was initially introduced in January of 2009. It is fully registered and patented and many consider it a viable source of income; while others may choose to trade, transact and invest in the asset. Certain countries have outlawed any transactions with this type of currency as it’s not legally recognised by governments and authorities – but the majority of locations around the world accept all activities associated with the tender.

What is the true definition of a bitcoin?

A bitcoin is a digitally created, coded and encrypted piece of currency that possesses similar features to the British pound (buying a Bitcoin in the UK costs around four thousand pounds) or the Australian dollar. The main difference is that where these currencies can be handled physically; bitcoins can only ever be dealt with online (or digitally). In order to have a bitcoin an online wallet will be required; one that has been exclusively issued by a licensed bitcoin supplier or trader.

What can Bitcoins be used for?

This all depends on the person that’s either receiving or providing the bitcoin in question. Years ago, when the currency was still a new concept to the wider world – the majority of individuals transacting with it would have done so within professional environments. For instance, it can be possible to pay for particular goods or services with these coins; although now one coin is worth several times more than its predecessors would have been in the past.

Nowadays, many people transact with bitcoins in some shape or form; from purchasing them for investment purposes, right through to using them to cover the cost of a particular product or service. As long as the seller of a service is happy to receive bitcoins as a form of payment, then they can be used to trade for any number of things.

Some people prefer to invest in digital services in an effort to keep all of their transactions online – but it’s not unheard of to find that certain agencies accept the coins as payment for items of furniture, gadgets and other types of physical goods. The thing to remember is that although there is a cap of 21 million bitcoins being worked towards – they will always be present regardless of how often they are traded with.

For example, even if one particular coin was used to purchase goods hundreds of times and was traded just as frequently; then there will always be an owner of the currency. Once the 21 million cap has been reached, bitcoins will still exist – but where they can still be mined these days, once this process is no longer possible, the value is expected to rise extensively.