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The digital revolution continues to provide a platform for progress, and with more and more areas of our lives coming in ones and zeros, we are already living in a digital world. The Internet changed our lives from day one – and with the entire planet predicted to have broadband access within a few years – we now have a stable platform for new technologies like blockchain.
In order to understand how digital currency works, you first need to have a basic understanding of blockchain technology. This involves blocks of data that are connected to the previous ones, thus creating a chain, and this makes hacking impossible. If, for example, you are the registered owner of X amount of Bitcoin, then that is recorded in the public ledger we call the blockchain. You will retain ownership until such time as another entry is logged, transferring Bitcoin to another party, which is added to the chain and cannot be altered. There is no central database with a blockchain, rather it is a public ledger and every user must agree to a transaction, which is all done automatically behind the scenes.
Third Party Transactions
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Since we first began to send money, there has always been a need for a third-party handler, namely a bank or credit card company, who take a slice of the action for carrying out the transaction. We have always accepted that moving money around involves paying a third party, yet digital currency requires no third party; a transaction can be carried out between two people who do not know each other using a currency like Bitcoin. Obviously, banks do not welcome cryptocurrency and are currently trying to figure out how they can play a part in the process. If you want to get the ball rolling, you can buy bitcoin in Melbourne from a reputable dealer, who can be found with a Google search.
Millions of people who live in third world countries can directly benefit from a cryptocurrency such as Bitcoin. Banks will not let a person open an account unless they have specific things like a home address and a national ID number, yet Bitcoin offers a cheap way to store your wealth and transfer to whoever you wish. This will aid small businesses around the world, as people can safely store their money in the form of a digital currency and have the ability to transfer at any time – all you need is your private key, a device and an Internet connection. One thing is for sure, Bitcoin will change the world for the better, and the sooner you start to get to know this currency, the sooner you can take advantage of the many benefits.
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If you are looking to diversify your investment portfolio, why not get into Bitcoin? The long-term prospects are good, and if you forge an alliance with a local Bitcoin dealer, buying and selling is easy. Many experts predict an ongoing increase in Bitcoin transactions, and as Bitcoin grows, so will its value.