It’s no longer news that bitcoin technology has the potential to attract many interested parties from all aspect of life. Yes, there are some platforms that have been created in other to make bitcoin more accessible and usable that hasn’t lead to a happy ending – especially its security. Though, it’s best to consider these platforms as learning curves.
However, if you are a bitcoin user, there are some important pieces of information you need to know before using your digital currency/asset for a payment method online and in the real world as well.
Here are 4 essential things you need to know as a bitcoin user.
#1 The Bitcoin Prices Are Determined By Its Users.
Yes, the bitcoin price is determined under the free market principle of supply and demand. Just like any other underlying assets. The market force known as supply and demand has a significant impact on the digital currency.
In addition to this, it’s interesting to know that the bitcoin supply is limited to 21million coins. Considering this limitation in supply, the increase in demand of bitcoin by people will definitely lead to a significant increase in the bitcoin price.
According to the research on American bitcoin users, it was revealed that most Americans remained unfamiliar with bitcoin in the year 2015. Also, it was revealed that the rate at which bitcoin is being adopted among merchants and consumers is slow.
Looking at the fact that people using bitcoins in the world today are still small, It’s price in term of traditional currency obviously fluctuates on daily basis. Evidently, as more people start to use it, the price will tend to grow higher.
In 2011, a survey accounted that bitcoin has died 78times. Then, it has nearly no value, It worth less than a dollar. But in 2015 one bitcoin is worth hundreds of dollars. In future, with the fixed supply and the ability to accommodate demand, one bitcoin will have to worth at least hundreds thousands of dollar.
#2 There Is no Central Authority In Command
According to the 2014 report in fourty foreign jurisdiction and European Union, reporting the views of central banks, or government office on the handling of bitcoins as well as any significant use of bitcoins in business transactions.
Of those countries surveyed, only a very few, notably China and Brazil, have specific regulations applicable to bitcoin use.
However, it’s a fact. Bitcoin isn’t owned by anybody. Nobody is in charge here. It’s more interesting to think of it like the air with breath in. Anyone can breathe in air but no one is in charge of it.
As a bitcoin user, it’s interesting to know that digital currency transactions are irreversible. No government, banks or certain authorities can stop you from receiving or sending bitcoins to anyone else in the world.
Though there are lots of freedoms that come to play while dealing with this digital asset, but you also have to be responsible for your actions because there are no bodies or parties to complain to, if things go wrong.
If this is the case, it’s highly advisable that you hold your bitcoin wallet very tight and never allow strangers to have access to it. Also, don’t send your bitcoins to untrustworthy people on the internet.
# 3 Bitcoin Privacy Can’t Be Completely Guaranteed.
Apparently, this type of cryptocurrency isn’t wholly anonymous. In respect to the verification of transaction by network nodes, all bitcoin transactions are stored in the block chain–this is simply a distributed public ledger that records all transactions. And people links to it over time.
In this regard, some companies go as far as offering a bitcoin mixer to help them achieve greater privacy. Though, it takes a huge amount of effort to transact with bitcoin anonymously.
However, to improve your privacy, you might decide to use most of the newer bitcoins wallets. Because these newer bitcoins wallets use a new bitcoin address anytime someone sends bitcoins to you.
#4 You Have to Secure Your Wallet.
Remember that you are responsible for whatever actions you take; this deems it very necessary that you take a highly precautionary action when it comes to your wallet. Your wallet here actually acts as “your bank account”.
Though there are several types of bitcoin wallets, but the most important of all is how you control your private key and who is in control of your private key. Meanwhile, It’s very important that you’re aware and in control of your private key.
For instance, if you’re in control of your private key it means that no other person in the whole world can access your account without your permission that is you are in control of your bitcoin wallets. It also means that if you lose your password, no one can help you recover it. On the contrary if you’re not in control of it and it’s known to a theft, then, that criminal has a sure access to all your digital currency.
In summary, as a bitcoin user, there are some necessary information you need to get abreast with, in other to smoothen your transaction with digital currency.