What Is Bitcoin Bitcoin is a virtual currency, or cryptocurrency, that’s controlled by a decentralized network of users and isn’t directly subject to the whims of central banking authorities or national governments. Although there are hundreds of cryptocurrencies in active use today, Bitcoin is by far the most popular and widely used – the closest cry Show More...
What Is Bitcoin Bitcoin is a virtual currency, or cryptocurrency, that’s controlled by a decentralized network of users and isn’t directly subject to the whims of central banking authorities or national governments. Although there are hundreds of cryptocurrencies in active use today, Bitcoin is by far the most popular and widely used – the closest cryptocurrency equivalent to traditional, state-minted currencies. Like traditional currencies, such as the U.S. dollar, Bitcoin has value relative to other currencies and sical goods. Whole Bitcoin units can be subdivided into decimals representing smaller units of value. Currently, the smallest Bitcoin unit is the satoshi, or 0.00000001 Bitcoin. The satoshi can’t be broken into smaller units. However, Bitcoin’s source code is structured to allow for future subdivisions beyond this level, should the currency’s value appreciate to the point that it’s deemed necessary. Bitcoin is the most versatile cryptocurrency around. It can be used to purchase goods from an ever-growing roster of merchants (including recognizable companies like Expedia and Overstock.com) that accept Bitcoin payments. It can be exchanged with other private users as consideration for services performed or to settle outstanding debts. It can be swapped for other currencies, both traditional and virtual, on electronic exchanges that function similar to forex exchanges. Pro tip: If you have Bitcoin or any other cryptocurrencies, sign up for a BlockFi Interest Account and earn up to 8.6% APY. Block Chain Bitcoin’s block chain is vital to its function. The block chain is a public, distributed ledger of all prior Bitcoin transactions, which are stored in groups known as blocks. Every node of Bitcoin’s software network – the server farms and terminals, run by individuals or groups known as miners, whose efforts to produce new Bitcoin units result in the recording and authentication of Bitcoin transactions, and the periodic creation of new blocks – contains an identical record of Bitcoin’s block chain. Because new Bitcoin transactions constantly occur, the Bitcoin block chain, though finite, grows over time. As long as miners continue their work and record recent transactions, the Bitcoin block chain will always be a work in progress. In other words, there’s no predetermined length at which the block chain will stop growing. Wallets Actual Bitcoin units are stored in “wallets” – secure cloud storage locations with special information confirming their owners (Bitcoin users) as the guardians of the Bitcoin units contained within. Though wallets like Coinbase theoretically protect against the theft of Bitcoin units that aren’t currently being used, they’re vulnerable to hacking – particularly public wallets used by Bitcoin exchanges, onetplaces, and specialized websites that exist solely to store Bitcoin wallets known as “wallet services.” Why Cash App for Bitcoin Cash App is one of the best and safest wallet to store bitcoin. Using your Cash App, you can now purchase Bitcoin right from your device. To ensure the best experience, we’d like to make you aware of a few risks surrounding buying and selling Bitcoin. As Bitcoin is a new form of digital currency there are some inherent risks. The future value of Bitcoin is unpredictable – you should only buy with funds that you are prepared to lose. Please proceed at your own risk. Markets rely on the availability of both buyers and sellers. As such, Square cannot guarantee that there will always be an active market to sell your Bitcoin. While uninterrupted service is always our goal, we cannot guarantee access to the platform at all times. Unlike sical currency, digital currencies are stored in digital wallets. Your Bitcoin balance is stored using Square’s secure onine wallet system. Square holds your Bitcoin as a custodian at your risk. Square may not always support Bitcoin withdrawals to an external wallet in an immediate fashion. This is a security feature. Withdrawing to an external wallet is contingent on internal review and accurate and up to date ID verification information. Updating your personal information is to your benefit. Your security is our priority, visit our security page to find out ways to make your account even more secure by ensuring that your personal information is protected across all the services you use.
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