Basically, the Bitcoin wallet is a wallet for Bitcoin, with which you can keep them safe, make payments or receive them. Before analyzing in detail what a wallet is, it is good to make a small reference to what is a Bitcoin that is a virtual currency, without a predefined value, born in 2009.
The value of this currency is not determined by a bank or an organization, but varies according to changes in demand, according to market laws. This allowed him to go from a value of zero euros in 2009, to less than half a euro in 2010, up to today exceeding 9000 euro after ups and downs. In order to manage and therefore keep an “object” with such a high potential value, an adequate tool is needed, i.e. the wallet. The purchase price varies according to the fluctuations of the currency in the network and Bitcoin accumulate in a virtual wallet. If you are interested in bitcoin trading, visit https://immediate-bitcoins.com and start earning today.
How the Wallet works?
You will be used to keeping your paper money in a wallet, and at least metaphorically it is the same operating principle that animates the Bitcoin wallet. In fact, the keys that allow you to change the ownership of a certain amount of Bitcoin are kept inside, keys that are transmitted. In case you want to send your cryptocurrency, to the blockchain, the huge list of public access operations that govern the operation of practically every cryptocurrency. Keep reading for more info.
From a technical point of view, is rather complicated. It is not Bitcoin that are stocked inside the wallet, but the private cryptographic keys that allow you to change the ownership of the same. It also allows you to generate the keys which in turn will be transmitted to who will be the new owner of part of your Bitcoin.
The technical question does not necessarily have to interest you, in the sense that you can, without any kind of problem. Use the wallet you prefer without understanding in detail what the technology is that drives the software. After all, you know practically nothing about engines and yet you use your car and public transport, and although you know absolutely nothing about planes, you fly from one city to another.
Advantages of using wallet to Make and receive Payments
Allow you to break down transaction fees, both in payment and in reception, while allowing great security in the transaction, like cash payment. This is particularly true in payments between companies, given that the item “bank charges” for bank transfers. The like is always quite high, contrary to what it would cost to make and receive payments in Bitcoin, that is, almost nothing.
1. It is a completely solved system by banks, governments and financial institutions. Therefore it does not suffer from the possibility of being easily manipulated by those who have an interest in controlling its diffusion. The demand between supply and demand will be the only impartial referee.
2. Bitcoin cannot be taken away by anyone if you do not allow it: in the past it happened for gold (… due to its use as a currency reserve. Sometimes, in history, private ownership of gold has been regulated or banned.
3. No special IT skills are needed to use Bitcoin: just create a Wallet, your electronic wallet, deposit your BTC and you are ready to spend them both online and in the real, or notebook. Using the system made available by the operator who accepts the payment in Bitcoin, or even with a debit card, rechargeable in Bitcoin that converts the currency into euro before shopping.
4. The projections of important economists give Bitcoin on the rise, both as a payment method and as a real currency, to be used in commerce. As soon as it matures, even in everyday life, with the advantages of an electronic currency similar to cash.
5. Freedom of payment, You can send and receive any amount of money instantly, anywhere, anytime.
6. Since there are no central banks, banks or intermediaries, Bitcoin payments are constantly processed without costs or with extremely low charges.
7. All information concerning Bitcoin’s movements is available on the “blockchain” to everyone, for verification and use in real time.
8. No private individual and no association can control or influence the Bitcoin protocol, because its safety is guaranteed by the use of encryption.