One of bitcoins blog series.
BITCOIN: The New Cookie Jar for Your Stash
Let go of those purse-strings ladies, there's a new kind of wallet in town. One that's taking over online spending one imaginary coin at a time and it goes by the name of Bitcoin.
Just what is this Bitcoin everyone's been talking about? Is it like the toonies and loonies up there in Canada, eh? No worries, these coins won't make your purse heavy enough to bash a burglar. However, they are one of the most up-and-coming forms of virtual currency available.
Just what is Bitcoin anyway?
Bitcoin is a popular, relatively new virtual currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Much like your debit or credit card, or PayPal, no exchange of tangible money takes place. Unlike your debit or credit card and PayPal, Bitcoin transactions are not done through a middle-man, which means no banks and best of all, NO bank fees! (Which may just be the perfect excuse to get yourself that little something extra. Just think of all the fees you've saved!)
Where do I keep my Bitcoins?
Falling behind are the days of toting around bulky wallets and heavy handbags, or struggling to sift through a coin purse. Today's money is being spent, and stored, online. Bitcoins are stored in a digital "wallet" app you install on your computer or your smartphone. There are a number of different wallet apps available, each with its own pros and cons. But that's a story for another time.
Why would I want to use Bitcoin?
Why fix what isn't broke? Aren't credit cards, debit cards, and now PayPal enough? NO! The world is constantly evolving. What once was a fad quickly becomes the norm. New technology replaces old technology. Cash becomes Bitcoins, or so to speak. Aside from keeping up with the times, there are many other advantages to using Bitcoin as your main form of virtual currency.
Perhaps the biggest benefit of using Bitcoin is the fact that there are no banks involved. This allows you a certain freedom that you may not enjoy while going through an institution. This peer-to-peer network allows you to be in full control of your money. No need to worry about bank fees, or even bank holidays. Spend your money how and when you like, without a middle man charging a hefty fee.
A favorite advantage for many is the anonymity of Bitcoin. You do not need to give a name, or any other personal information such as your email or phone number, when making a Bitcoin transaction. A bitcoin address unique to your personal Bitcoin account is the only identifying information you will ever have to provide. A great option for those that might want to hide a surprise gift purchase, or a guilty splurge, from showing up on a credit card bill.
Where can I spend Bitcoins?
Many different companies, both small and large, have jumped on the Bitcoin bandwagon. The unofficial list of some our favorite companies that allow Bitcoin as payment include overstock.com, Victoria's Secret, Subway, and Target. Even some dating websites, such as OKCupid, are now accepting Bitcoins as a form of payment.
What should I watch out for?
Sound too good to be true? Anonymous transactions, no banks to deal with, so what's the catch? Well, like anything, there is bound to be a disadvantage or two. Fortunately, the cons of Bitcoins are few. The main disadvantage, which is steadily improving, is the number of companies that accept Bitcoin as a form of currency. Although the list is still smaller than ideal, new businesses get on board every single day and it's only a matter of time before Bitcoin becomes the preferred method of payment.
How do I get on board the Bitcoin train?
There are three main ways to obtain some Bitcoins. One, you can purchase them at a Bitcoin exchange. Two, you can exchange Bitcoins with people that are close to your location. Three, you can earn Bitcoins through mining. Stay turned for our upcoming blog article that will explain these three options in greater detail.
Now that you've been introduced to the wonderful world of Bitcoin, crack open that virtual wallet and let's get shopping!