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I want a simple explanation of Bitcoin. How it really works and how can I use it for payment stuff. I am unable to understand the usage here. I had seen a lot of articles on web which are quiet technical. I am not able to understand it. Being a currency it must be identified or authorized by some banks. Or else it has no value at all.
Bitcoin is generated for an un-regulated market. Today if you use your credit card or debit card your money flow in the form of virtual form. But bank at the other end is the one who knows everything. Bitcoin has nothing like that. It is a kind of file that remains stored in your pc and which has all record of transaction.
It is not really complicated to understand what Bitcoin his. First just assume that you are having a wallpaper in your mobile phone. Your friends want that. He agree to pay you a small amount for that image. Here you can create a copy of that file and then share it. But this is not possible in Bitcoin. It is a powerfully encrypted file which cannot be re-created. It can only be transferred from one location to another.
Bitcion does not works directly. It works with the help of Bitcoin wallet. There is a Bitcoin network on the web. This network tries to maintain the authenticity of this virtual currency. It is designed in a manner that it cannot be replicated. And on the same hand it also hold detail of every transaction you do.
Bitcoin is the first digital public money. It is not having any authorization. That means it can be regulated freely. There are few sites today who has started accepting Bitcoin. This currency has a very low value today. But in future there might be some increase. But there are also chances that this currency might disappear also.
What matters is really money value in exchange of Bitcoin. There is no institution available today who can give you real money value. It is mostly used in illegal work. Once any government authorize it will be a kind of instant hit. But we have to wait back for the same. This would take ages I think.
It is not really recommended to use Bitcoin. That is because usually a central government only has a power to make currency. And here Bitcoin can be created by public through complex mathematical calculation. I am think this will get ban soon. Because it is already popular in black market. And there is no regulation on that.
Never trust on this unregulated currencies. They first of all digital and not recognized. When it comes to money you cannot go with anything which is not having any physical form or which is not authorized by the government. It will always create a problem in the future. I had gone through various articles about Bitcoin. Most of them shows that this currency has no value.