What Every Person Must Know About Bitcoin

Posted by Jason on April 10, 2014

You hear people talking about Bitcoin and you have people explaining what Bitcoin is to you – and you still don’t get it. Fret not. You will definitely understand Bitcoin this time around.

Bitcoin 101

Bitcoin is an electronic payment system where two people or groups can transact over the internet. Say for example, you found this lovely item for sale online but you don’t have a credit card. Lucky you, the merchant accepts Bitcoin, so consider that item yours! Because Bitcoin is an open network, anyone who has access to internet may transact on it, you and that merchant included. Plus, transaction fees are very minimal and are paid in Bitcoins as well.

One of the perks of using Bitcoin is privacy, as it allows transactions without requiring your identity. In Bitcoin, you will use some sort of a pseudonym (which has no link to your real world identity) so transactions will be very difficult to trace. This will enable you to make anonymous purchases, which of course has its own advantages and disadvantages.

More about Bitcoin

Bitcoin is an entirely unique currency on the internet and is not in dollars or euros. Yes, it is a currency in its own. Like many peer-to-peer programs, Bitcoin is also decentralized. To the joy of many, this means that no entity (let us say a bank or a government) can control the Bitcoin currency system and transactions do not need to pass through the above-sampled entities.

To further enlighten you, Bitcoins can’t be withdrawn or used to make manual payments, it stays in your online wallet, which is easily accessible via computers, laptops, or mobile phones. Bitcoin wallets are like computer files where you safekeep your, well, Bitcoins.

Can’t get enough of Bitcoin?

Bitcoin has been up since early 2009 and was founded by someone or some people who used the name Satoshi Nakamoto.

You may even use Bitcoin to not only make online purchases, but to send money to your family, and someday even pay home loans? Why not? It’s an alternate to traditional fiat currency. You may also use Bitcoin for your personal finance and you do not need to have bank accounts or credit cards to use it. This explains why the number of merchants accepting Bitcoins are growing as you read this.

You may also want to learn about crypto-currency (Bitcoin, by the way, was the first crypto-currency launched.) so that you’ll understand Bitcoin better. If you decide to, check out dogecoins and litecoins.

Still don’t get it? One more analogy.

GoRefi allows people to refinance their homes with paperless transactions - they may take as fast as an hour with no disruptions, in comparison to ten hours of competitors. GoRefi also has no loan officers, only customer support if you have questions. In a way, Bitcoin works the same way. It's paperless, involves less third parties, and works instantaneously! How awesome is that?