VICIOUS CANDY MAGAZINE
How Bitcoin Works
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V
C
BY PETER ANDERTON
B
itcoins are a decentralized form of crypto currency.
Meaning, they are not regulated by a financial
institution or the government. As such, unlike a
traditional bank account, you do not need a long list
of paperwork such as an ID in order for you to establish what’s
known as a bitcoin wallet. The bitcoin wallet is what you will use
to access your bitcoins and to send bitcoins to other individuals.
How to Setup an Account
You can acquire a bitcoin wallet from a bitcoin broker such as
Coinbase. When you open up a wallet through a certified broker,
you are given a bitcoin address which is a series of numbers and
letters, similarly to an account number for a bank account and
a private key which is a series of numbers and letters as well,
which serve as your password.
How Does Bitcoin Work as an Anonymous
Payment Processor
You can do 3 things with bitcoins, you can make a purchase,
send money anonymously to someone or utilize it as an
investment. More and more merchants have been accepting
bitcoins as a form of payment. By utilizing bitcoins instead of
cash, you are essentially making that purchase anonymously.
The same thing goes for sending money, based on the fact that
you do not have to submit a mountain of payment in order for
you to establish a bitcoin anonymously, essentially you can send
money to someone else anonymously.
How Does Bitcoin Work as an Investment
The price of a bitcoin fluctuates from time to time. Just to
put things in
perspective, back
in the beginning
of 2013, the
average price
of a bitcoin was
approximately
$400 per bitcoin,
but by the end of
2013, the price
for bitcoin rose to
over $1000. This
meant that if you had 2 bitcoins worth $800 in the beginning
of 2013 and you stored it as an investment by the end of 2013
those two bitcoins would have been worth over $2000 instead
of $800. Many people store bitcoins due to the fact that the
value of it fluctuates.
Bitcoin Casino and Poker Sites
Due to the anonymity of bitcoin the gambling industry has
taken up bitcoin as a payment method. Both bitcoin casinos and
bitcoin poker sites are coming to life and offering their players
to make deposits, play with bitcoin at the tables and withdraw
directly to their bitcoin wallet. This means that there are no
taxes or possibilities for government control. Much like a regular
Nevada casino where do you don’t need to register anywhere
and all your transactions are anonym