What are Bitcoins used for?

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Bitcoin

Bitcoins is the most commonly used of the ‘alternative’ currencies. It’s the most widely recognized as having value and is worth around $70 billion today. Since it is anonymous and transactions are ‘pseudonymous’ some believe it’s the currency of choice for drug dealers, terrorists, and those seeking to hide their wealth.

It’s also becoming popular for those looking to buy and sell merchandise, and have it shipped to overseas. The fact that it’s not controlled by governments such as the US or UK is appealing, as any currency controlled by the central banks of these nations are known to become devalued due to capital outflows.

Why do people spend Bitcoin?

Bitcoin users have one thing in common with other Internet enthusiasts: they’re not in it out of an altruistic desire to make their purchases more secure. Instead, many spend their cryptocurrency for speculation – they don’t actually understand what it is they are trading for, but they see it as a chance to become richer. There are also people who want to be able to buy something anonymously, and who thus use Bitcoin to evade scrutiny from governments (though the latter will not affect the first group). Some believe that Bitcoin offers a way of protecting against inflation with no government control, while others see it as a way of bypassing government control by having their currency completely unregulated.

What about Bitcoins in China?

China has officially banned any sort of currency based on Bitcoins and many in the Bitcoin community believe that China will block Bitcoins as well. But this hasn’t had the devastating impact many had believed would happen. There are some exchanges that allow Bitcoins to be purchased in exchange for other currencies, such as dollars, pounds, or euros. As with many exchanges, you’ll be buying from people who don’t trust the central banks and will accept no liabilities from you unless you provide some assurance that your Bitcoins aren’t being traded as legal tender

So, if you are interested in trading bitcoin, make sure you buy from a trusted source. Unfortunately, there are a lot of scammers out there who promise bitcoin but deliver nothing. There are bug companies out but also a lot of fake ones. So, before you go head first into the world of crypto currency, do your research and take your time. It can be profitable but it can also have the reverse effect. 

We also recommend visiting The Bitcoin Forums if you are getting started.

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