What is Bitcoin?

What is Bitcoin?

Bitcoin is a digital currency. You can pay with it on spot, in online stores and make transfers. Although, Bitcoin is different than ordinary currencies you know. Advanced math (cryptography) secures each transaction in Bitcoin. It guarantees that transactions cannot be forged and the currency cannot be stolen - of course if the Bitcoin owner uses standard safety procedures (eg. doesn't pass his private key to third-parties).

Bitcoin transactions registry is called Blockchain. It consists of all transfers of this cryptocurrency. You can use it to check your transaction status. The receiver cannot decline he received the funds.

Bitcoin is partly anonymous. No one can check who owns a certain wallet, but everyone can see how much money was sent and to which wallet address. They can also check how much money is deposited on a certain wallet. Those wallets are not owned by any specific person. Opening Bitcoin wallet doesn't require any documents or signatures - unlike bank accounts. You just need internet access.

If you loose wallet's private key - you loose all money that you deposited to it. No one will be able to restore it. That's why you should remember about keeping your private key in a safe place.

Why you should get interested in Bitcoin?

Mostly because Bitcoin allows quick and cheap international transfers. It's because the cryptocurrency is decentralized - it has no issuer, there are no middlemen in transactions. When paying with Bitcoin you don't have to worry about bank fees or delays. That's why Bitcoin can substitute fiat currencies in payments and transfers.

Bitcoin can be called "the cash of our times" because it works in a similar way - it allows payments without third-parties. The difference is all transactions happen online, which allows money transfers to any place in the world that has internet access. Those transfers are very fast - usually, they take max. 15 minutes.

BitBay does not require verification to trade digital currencies

On BitBay you can exchange digital currencies without verification, which is only necessary if you intend to pay in fiat currencies eg. USD, EUR or PLN. Verification also allows credit and debit card deposits, express deposits via DotPay or Polish Post and access to all functionalities.

How to verify your account? You just have to send scans of two documents:

  • Both sides of an ID document - passport, driver's license or ID card.
  • Address confirmation document - a bill, a contract or a document issued by the government, not older than 6 months.

You can also open a corporate account. Verification requires both documents mentioned above, as well as some kind of corporate document that has company's name, address and confirms that BitBay account owner is the company's representative.

What are the differences between cryptocurrencies and fiat currencies?

TypeBitcoinBank accountCash
Owner / IssuerDecentralized, all Bitcoin users are issuersThe state / Virtual currency in the bankThe state
ControlAll Bitcoin usersBankThe state
FeesNo feesDepend on the bankNo fees
Physical representationBitcoin wallet issued by BTC networkNo representationBanknotes issued be the state

Bitcoin and other cryptocurrencies are decentralized - they do not have an issuer and no one can manipulate their value. Bitcoin price is determined by buyers and sellers. Bitcoin has fixed amount which doesn't allow inflation. It also doesn't have cash represaentation, but more and more companies accept Bitcoin payments. Cryptocurrency payments are faster and cheaper. International transfers take a couple of minutes.

How to pay with Bitcoin?

More and more stores, restaurants and other service points accept Bitcoin payments. It is very easy at the online stores - just pick Bitcoin when choosing the payment method. On the spot, you will need your wallet's QR code.

BitBay card also allows you to pay with Bitcoin. You will easily, quickly and safely pay with Bitcoin using it. Even at places that don't accept cryptocurrency yet!

Is Bitcoin safe to use?

Compared to classic money - definitely yes! Bitcoin is secured with advanced cryptography that blocks transaction frauds. Stealing funds is also very difficult - if the user remembers about basic safety procedures. Moreover, Bitcoin is decentralized which means its price cannot be manipulated by third-parties. Bitcoin was created by people for people - the users have a real impact on its value.

Where does Bitcoin value come from?

Bitcoin's value comes from computing power that is used to solve math problems. People who share their computers to solve those problems are called miners. For sharing their computing power they get compensation in cryptocurrency.

How Bitcoin was created

The concept of Bitcoin occurred already in 2008. Project by anonymous creator alias Satoshi Nakamoto was released in 2009. At first Bitcoin's value was very low - only a couple of cents. No one knew that cryptocurrency revolution was on the way. Today we know it was a financial breakthrough.

Manifesto of Satoshi Nakamoto

Can the network be broken?

The power of 5935GH is needed to break Bitcoin network. The world's strongest computer has 0.3GH. It means that 3952590235 of supercomputers would be needed. One computer like that costs 2 billion USD. Breaking Bitcoin network is impossible.

If you ever heard about Bitcoin theft - it was because cryptocurrency owner didn't provide enough security. Or, if this person kept their funds in the exchange, cantor or online wallet - the service provider would be to blame. He didn't secure his clients' funds properly.

Our security standards are constantly under control. Our professional safety department updates them regularly. Part of those solutions are well known but some of them are secret.

Where is the money (infrastructure)

Bitcoin network is fully open. Each transaction can be found, you just need to know wallet address. Users that take part in transactions are anonymous.

  • Bitcoin wallet - only you have acccess to it. You just need wallet address and private key.
  • Bitcoin address - unique combination of letters and digits attached to your wallet.
  • Private key - unique password that is needed to acces the wallet.

Example of Bitcoin address and private key:

EXAMPLE OF BITCOIN WALLET ADDRESS

1CC3X2gu58d6wXUWMffpuzN9JAfTUWu4Kj

EXAMPLE OF PRIVATE KEY

5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF

All transactions in Bitcoin network

Where to buy Bitcoin?

You can buy Bitcoin on our exchange. It's very easy! You just need to deposit some funds into your account choosing one of many methods we offer. You can pick do this in Dollars, Euros or Polish zlotys. You can buy Bitcoin using deposited funds. Just fill in the amount you want to spend and confirm the transaction - done! You have your first Bitcoin.

You can also use our partners' services:

  • Bitcantor is a quick Bitcoin cantor
  • You can also buy Bitcoin with a text message
  • Bitcoin ATM is a revolutionary machine that allows buying Bitcoin with cash. You can check where is the nearest ATM at bitcoinATM.com

Can Bitcoin be a substitute for the classic currencies?

Definitely. Bitcoin is faster, cheaper and available globally without middlemen and high fees. That's why it's prefect for payments. Its value grows constantly and exchange rate changes are good for speculation. Bitcoin is great for long- and short-term investments.

Soon - map of the places where Bitcoins are accepted