Decrypt, Bitcoin wallet

The beautiful thing about bitcoin is that the wonderful principles of classic liberalism steer its market: everyone trading for himself causes for a wealthier society in general. What makes the bitcoin market a special one is that it isn’t regulated in any way. Interactions are p2p (peer-to-peer) and it thereby passes no financial institution at all. This means that there are almost no fees, unlike most credit- and debit-cards. A disadvantage however is that the absence of governments leads to an absence of control, which means such online-markets are more sensitive for hacking or great declines in price (since no regulator is there to stop the market in case it goes wrong). Many regulators and central banks already warned against bitcoin, as it was so dangerous to use.

The way bitcoin works is quite simple: you exchange your money (whatever currency you’re using) and get bitcoins in your bitcoin-wallet in exchange. People can also pay you for goods or services you offer by transferring money into your wallet. Nowadays a lot of big companies (e.g. Zynga, Paypal, Ebay) already accept bitcoins. A third way to obtain some coins is by an operation called ‘mining’. A bitcoin-miner uses special software to solve math problems on his computer, in exchange for some coins. Nowadays there are already professional miners, making their money on mining bitcoins all day.