A bitcoin is like a virtual token. It is currency that you can earn and spend on goods and services just like paper money. Businesses and organizations all across the globe are beginning to accept bitcoin payments as an alternative to standard payment methods. The benefits of bitcoin far exceed benefits of other currency and the risk is also much less.
Bitcoin's main purpose is to replace paper money for something more efficient, safer, and easier. It also intends to be a universal currency, eliminating the need for exchange rate calculations across societies that use different currencies.
Why Use Bitcoin?
Bitcoin is more efficient in every way. It uses very little resources to create, distribute and trade. Did you know that it costs anywhere from 5-10 cents to create paper bills, and often more to create coins. A penny for example, costs nearly 3 cents to make. A nickel costs about 14 cents. This means our society is paying for currency that has less monetary value than it's actual face value. This does not bode well for us, as any wastes in resources can negatively affect our economy in the future. The costs of trading bitcoins is negligible. It merely uses a tiny amount of electricity, often times it uses electricity that would be used anyway running a computer that a transaction is being processed through, thus ultimately costing very close to literally nothing. Sometimes very small transaction fees can be applied depending on the source used, however it is much smaller than that of other transaction fees that banks and merchant gateway providers like Paypal would entail.
Bitcoin is safer. Paper money is easily subject to physical damages, theft, and becoming lost. This is basically impossible for a virtual currency. Although bitcoin can be stolen, it is exponentially more difficult, can be more easily recovered, and wouldn't affect the worth or value of bitcoins. Every transaction undergoes an extremely strict set of protocols and encryptions to ensure the legitimacy and security of the transaction.
Bitcoin is easier. Transactions can be sent instantly from any computer in the world to another. It does not require a complicated process either. Every individual can obtain a unique virtual "wallet" which is accompanied by a complex identification number. Using the identification number, money can be sent and received in just a few seconds after logging into one's wallet online. Also, you can always immediately exchange bitcoins for your standard form of currency, no hassle, no costs!
Additional benefits of Bitcoin include the quickly rising value. Since it's release, anyone who has invested in bitcoin has reaped the reward of dramatic increases in value. But don't worry, every indication points towards the fact that the value will keep rising for years to come until it stabilizes when a vast majority of individuals have begun using bitcoin. Values are currently on a dramatic rise without signs of slowing.
Is there a risk?
In short, yes, but it's actually less risky than whatever you're doing now! I can't say with absolute certainty that the stock of bitcoins will never drop and that it's completely impossible to become subject to theft, but I will say it's MUCH MUCH less likely to happen compared to current forms of currency, like the dollar. In fact, I'd rather invest in tradable goods and inherently valuable resources like gold and silver.
Save Yourself from Economic Armageddon!
There are many reasons why our financial system and economy are on the brink of collapse. Corrupt banking systems and fraudulent production and counterfeiting of money are just two of many reasons. Both of which are completely nullified by using a bitcoin system of currency. There is no central bank that controls the storage and regulation of bitcoin, nor can you counterfeit bitcoin! Read about the Economic Armageddon and what you can do about it.
*In addition to this valuable information regarding financial solutions in a time of crisis, you might want to refer to this broader survival guide.*
Where Should You Start?
To begin using bitcoins, you can simply create your virtual wallet using many different sources. The one we recommend is Blockchain.info. It only takes a few moments to set up and once your started all you need is to convert some dollars into bitcoin. It will walk you through this process, after that, enjoy the benefits of increasing monetary values and easier/safer payment methods with hundreds of thousands of vendors that support bitcoin currency like ourselves!
To understand more about HOW bitcoins actually work we should refer you to a wikipedia page. They get more into the details about things such as "bitcoin mining", "hash functions", and trade rates. Bitcoins can be readily and immediately exchanged for dollars, so you can 'cash out' whenever you want. Limiting risks even further if you were to need paper currency in a hurry, while having money tied up in bitcoin.