Bitcoin (cryptocurrency) is gaining popularity in our country now and still most of the people do not know what is really its purpose. It was in June 2017 when I first heard about bitcoin. When it comes to attention (in our country), I can say only 10% of our total population heard about bitcoin but the reality is this 10% will still be broken down into these categories :
- 50% of the 10% mentiond has only “heard” about bitcoin but have no idea what it is about.
- 30% of the 10% knew about bitcoin but has a negative impression to them (Scam)
- 20% knows exactly what bitcoin is and its purpose.
Disclaimer : the figures shown above are just my personal estimation and has no statistical basis. It is with the writer’s estimation.
A Misinterpretaion of Bitcoin
Because of lack of awareness and research, Bitcoin indeed has a serious misinterpretation in our country. Gathered from acquaintances, friends, relatives, and in social media posts, here are some misinterpration about bitcoin and how it is mistakenly used :
- Bitcoin become a mode of payment to investment scams. Investments that they guarantee to have bigger returns.
- Used as a startup for networking and pyramiding schemes.
- Bitcoin is used for illegal activities and transactions.
- Bitcoin is a bank that offers huge amount of interest.
But the reality about Bitcoin is defined below. When you understand its concept, it is truly amazing. You’ll realize that this technology will be a game changer.
Bitcoin’s goal is to create an online solution for cash transfers -“With no involvement from central entities’, eliminating third party charges. The idea is very simple. If you want to send money to someone, you are sending directly to him. There is no need for you to go to remittance centers or perform a bank transfer. The transaction is between you and the person you want to send, making it called “Peer to peer transfer”. The benefits of using this peer-to-peer cash system are :
- Direct sending, eliminating third party charges.
- Privacy (because there is no need for you to provide personal details, only your Bitcoin wallet address is needed)
- A convenient way of sending because it is performed electronically.
What is a bitcoin wallet?
An example of bitcoin wallet address. If you find this post helpful, consider sending some on that address
It is a wallet where your bitcoins are stored. The same as your physical wallet or bank account, it is the place where you store your assets (in our case Bitcoin). A Bitcoin wallet consist of 34 characters and it needs to be exact when someone send bitcoin to you, even capitalization matters.
There comes the problem. Since bitcoin transfers are completely private, some people abuse this feature. They used it as a mode of payment to hide their identities. That is the the top reason why Bitcoin transfer is a much preffered method to participate in scam business, investment schemes or networking. Unlike bank transfers / remittance centers, it needs personal details for us to send the payment.
In a bitcoin transfer, you only need to know the receiver’s wallet address (as mentioned above).
Remember bitcoin is an digital representation of your money online. You can spend it (There are a lot of shops/stores) that accept bitcoin and cryptocurrency as a mode of payment.
I hope this helped you. If you find this article helpful, consider sharing this.