A global currency shift is afoot. People have already made the move in their masses from paying with paper checks and cash to online systems involving a middle man. This includes payment methods such as Apple Pay, PayPal, and a bank’s website. In these situations, you are not directly handing your money to someone as you would with cash. Rather, you are entrusting a company to make the transaction on your behalf. We are now transitioning to a time when making payments using middle men like your banks and electronic payment systems may soon be less and less the norm. That shift includes Bitcoins. According to a recent 2015 Forbes article, there are a number of good reasons to use Bitcoins. From potential increasing value to flexibility, Bitcoins are poised to be the currency of the future. Below we answer many common questions to help you better understand Bitcoins. This way you can start to experience this exciting new currency and use our Bitcoin ATM machines in London.
WHAT IS BITCOIN
According to CNN Money, “Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name.” You can use Bitcoins to buy at increasingly more merchants, and international payments are easy and cheap as they are not tied to any country or a country’s regulations.
WHAT IS BLOCKCHAIN
A blockchain is a public ledger of all transactions in the network. Blockchain.info allows you to navigate the Bitcoin blockchain
WHAT FEES ARE INVOLVED
The transaction you create is usually free if the total transaction is larger than 0.01 Bitcoin. A nominal sum is involved to provide some incentive to miners to include the transaction in the block chain. See the miner and blockchain FAQ below to understand these terms. Currently, the way transactions occur, there is no fee. However, if the size of the transaction file is large, a nominal fee may occur.
WHO RUNS BITCOIN
According to the Washington Post, “No one owns or controls the Bitcoin network. It has a peer-to-peer structure, with hundreds of computers all over the internet working together to process Bitcoin transactions.” This means that Bitcoin is the world’s first financial open network. No permission is needed to start a Bitcoin financial based business. With the openness of Bitcoin, many tech companies are excited as it could transform the future of doing business much like the internet did.
WHO ARE THE MINERS
Miners are individuals who run computer systems to repeatedly calculate hashes. They calculate these hashes with the intention to create a successful block and earn coins from transaction fees and new coins created with the block itself. The term references gold miners who dug gold out of the ground.
WHAT DOES UNCONFIRMED MEAN
This means the transaction is not yet confirmed and still in the blockchain. Unconfirmed transactions are still reversible. Transactions usually take 10 minutes to occur.
WHAT IS A BITCOIN CLIENT
Bitcoin clients are the base level of technology and store the keys needed to conduct Bitcoin transactions. They are customized to fit the needs of different transactions.
WHAT IS A BITCOIN ATM
A Bitcoin ATM in London and elsewhere is like a regular ATM machine in that it allows Bitcoin users to make transactions and to exchange and buy Bitcoins using cash. These ATM machines are fairly intuitive to use. Below are steps on how to use one.
Step 1: Open the QR code for your Bitcoin wallet on a smartphone. You can get a Bitcoin wallet from BTC.com if you don’t already have one! Don’t forget to download BTC.com‘s app for iPhone or Android from the AppStore or GooglePlay.
Step 2: Run the QR code under the Bitcoin ATM machine’s scanner.
Step 3: Enter the amount of cash to be exchanged for Bitcoins.
Step 4: Wait for the machine to process the transaction and give out a confirmation.
Step 5: Check your Bitcoin wallet to see if the transaction is processed.
It is now easy to see why Bitcoins are the wave of digital currency for the future in London and beyond. They are not centralized, so there is no middle man in your transactions. Everything is run digitally and automatically. Fees are nonexistent or very low. And there are a growing number of retailers who take Bitcoin payments. This is a very exciting time to experience this new wave of spending and purchasing. We hope you found this short guide helpful to understanding Bitcoin basics.