The bitcoin revolution is upon us. Many have heard of cryptocurrency, but not all fully understand it or how it works. Bitcoin is a form of cryptocurrency, a global payment system. The currency system is the first of its kind as it is not regulated by the government or use banks. It works via P2P, with transactions occurring directly between two individuals. Mining is the term describing the process of individuals using computer software to solve algorithms in the attempt to generate BTC. The miners have a Wallet containing a public or Private key which allows them to receive or spend their cryptocurrency. As cryptocurrency becomes more prevalent and understood, people are wondering what the best uses for Bitcoin are, as well as the best ways to purchase it and what to expect for the future.
7 Best uses for Bitcoin
Some of the best-known uses for Bitcoin involve using it to dabble in areas unapproved of by the government: donations to certain organizations, purchasing goods disliked by the government, gambling in areas the government does not like, purchasing certain services, hiding assets from a spouse or government, and exchanging assets across borders. Hiding assets either from individuals or the government, or using it in cross-border transactions is where Bitcoin is moving towards in the future.
The Benefits of Buying Bitcoin in Person
Anonymity is key in purchasing Bitcoins as it is the sole item of value that the authorities cannot confiscate. Every digital transaction you make leaves s digital trace, so buying your Bitcoins in person is the only way there will not be a trace and proof that you own the asset. Basically, you do not want your Bit to be connected to your government identity. By purchasing in person, you will safeguard yourself against the possibilities of being accused of tax evasion or hiding your assets.
Buying Bitcoin from a BTM or Online Exchange
Complete anonymity is not possible with using a BTM or online exchange to purchase your Bitcoin. With Coinbase, you have to use your personal and digital identity; therefore, your identity and bank account are known and connected to your Bitcoin purchase. BTMs also require an identity. Although with BTMs, identity theft is possible. If you had someone else’s ID, the identity is only known by the government ID used, but because you are using cash, the government ID used is not necessarily your digital ID. If you are trying to protect your assets, buying in cash in complete anonymity is the way to go.
As each Block in the Block Chain are linked and secured, in part by the Digital Signature, individuals wanting to protect their Bitcoin will want to purchase it in anonymity. This also feeds into the best uses for Bitcoin in the present and future as a means of donating, purchasing goods or services that the government does not approve of. As Bitcoin can be purchased in person in complete anonymity, it is an asset secure from possible confiscation from government agencies.