Here we outline some of the frequently asked questions about bitcoin. The information you see here is gathered from our internal experts through experience with Bitcoin as well as external references such as the Bitcoin.org website. For more information on Bitcoin please visit the bitcoin.org site as it has many helpful and easy to understand answers to your questions. For more information on news and indepth articles on Bitcoin, we run a blog on all matters Bitcoin called, The Collogue
What is it?
Bitcoin is an emerging disruptive payment technology, which is aimed at replacing the current credit card industry's involvement in retail sales. Bitcoin allows for transactions to be performed between one person to another without the intervention of banks or other financial institutions.
How do I get bitcoin?
Bitcoin can be obtained in a number of different ways, much like regular currency. The first step to owning bitcoin is for you to download a bitcoin wallet (an application) to your PC/laptop/tablet or smart phone. This provides you a place to store your bitcoins. Once you have somewhere to put the bitcoin you can start receiving it. A few ways of the many ways to obtain bitcoin are listed below.
- 1. Download a bitcoin wallet on your PC/Laptop/Tablet/Smart Phone. e.g. Coinbase on the apple AppStore.
- 2. Purchase bitcoin on a Bitcoin Exchange. Purchased bitcoin can then be transferred back to your wallet for storing or purchasing.
- 3. Bitcoin ATMs are also gaining momentum. They allow for the purchase of bitcoin with a credit card. The bitcoin is again transferred to your wallet.
- 4. Get paid in bitcoin for a service e.g. your wages.
- 5. Selling goods or services for bitcoin
How do I use it?
By scanning a QR code with your smartphone wallet app or by entering another persons wallet address. Each wallet has an address, this is what is used to define the sender and the receiver of the bitcoins in a transaction. Public wallet addresses are 36 characters long and are alpha numeric. The address is often displayed as a QR Code which can be scanned with a Wallet App. If you don't have the app which scans the QR code, the address can be entered manually.
Wallets generally have a public address and a private address. It is important to note that your private wallet address should never be shared. The private address is similar to your PIN for an ATM card at your bank.
It is important to note that you need to be very security consious when working with Bitcoin. It is best not to store large amounts of bitcoin in your bitcoin wallet. It's a bit like your current wallet - you try not to walk around the streets with your life savings in your purse or back pocket.
Where do I use it?
To be able to use bitcoin you need to find a merchant willing to accept bitcoin for their products/services. This is where Noghi jumps in helps extend the Bitcoin community. Although it is increasing rapidly the acceptance of bitcoin is relatively low compared with that of credit cards or fiat cash.
Bitcoin is still in the early stages of adoption and acceptance is growing quickly with great exposure. Online services and products have been the quickest to adopt and accept bitcoin and it is here we see the greatest use of bitcoin, however it still limits us to the places that accept bitcoin.
Noghi helps you spend your bitcoin in more places than those who accept bitcoin directly. We have created a service which will allow you to pay your bills or invoices with your bitcoin. We acheive this by automating the conversion of bitcoin to AUD to bPay or EFT to your billers.
Is it secure?
The Bitcoin network, which is used to execute transactions in an open ledger, has a strong security track record through its reliance on cryptography. Weaknesses which present themselves most often are a direct result of the users of Bitcoin not taking adequete security measeures to protect themselves from threat. Here are a few tips to securing your bitcoins
Who owns it, or is it a company?
No it's not a company. Bitcoin is decentralized meaning it is not owned by anyone in particular. Those who use it control the Bitcoin technology. In order to use it you must comply with the Bitcoin requirements. This gets compared to email in a lot of cases. No one owns email but everyone uses it.