What Exactly Is Bitcoin?

When it comes to modern finance, the hottest word out of every other mouth is “bitcoin”? But what is bitcoin? One might ask. Technically, it’s defined as a “type of digital currency in which encryption techniques are used to regulate the generation of units and verify the transfer of funds independently of a central bank”. Okay, but what exactly is bitcoin? One might still ask. We sat down with Reuben Coppa–co-founder of intimate (a digital token designed for purchasing adult content)–and asked him to explain. Watch the video and/or read on a quick breakdown.

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Created by an elusive entity known only as Satoshi Nakamoto, bitcoin was originally established as a payment system based on a mathematical proof. The idea was for a type of digital currency that could be transferred safely, electronically, irreversibly and even anonymously, all without being tied to a specific bank or country (i.e. decentralised). Because of its direct relationship with computers and mathematics, bitcoin kind of operates as both a currency and a technology at the same time.

On the currency front, bitcoin is basically digital gold for three primary reasons: 1) There’s a finite amount of it. 2) Its value fluctuates in accordance with the laws of supply and demand. 3) It must be initially mined in order to be obtained, a process that involves solving advanced mathematical equations and being rewarded with bitcoin in return.

blockchain technology bitcoin

Additionally, bitcoin operates through blockchain technology, which is essentially an immutable digital ledger that updates itself after every single transaction or exchange. Because there’s no intermediary or third party oversight, blockchain allows for P2P (peer-to-peer) transactions, using public and private keys (basically a long string of numbers and letters) in lieu of names. As such, the process allows you to again remain relatively anonymous when making purchases with bitcoin.

Being that bitcoin and other cryptocurrencies remains strictly transactional, adjacent services and entities are emerging, such as “smart contracts” and digital tokens. For instance, the adult industry–arguably the Internet’s true bread and butter–is poised to adopt its own crypto known as intimate. Co-founded by Reuben Coppa (one of the first people to launch bitcoin ATMs on native soil), intimate is a token you can purchase using crypto like ether or bitcoin. You can then use your intimate tokens to pay for adult content (in every sense of the word, meaning live cams, escorts and videos alike) safely and anonymously with no fees and no delays. Indeed, perhaps now you can see why crypto is becoming so popular!

Advantages of Bitcoin

  • No third-party entity can seize your bitcoin
  • Since bitcoin can’t be intercepted, it can’t currently be taxed unless you report your earnings
  • No one but you will know how much bitcoin you have in your wallet
  • Depending on which platform you use, there are potentially no transaction costs when buying and selling bitcoin
  • Transactions cannot reversed, meaning no “charge-backs”
  • Bitcoin cannot be stolen from your wallet unless someone has physical access to your computer

Disadvantages of Bitcoin

  • Most merchants don’t currently accept bitcoin
  • Hardware wallets can be lost if your computer crashes
  • Software wallets can get hacked or robbed if not properly protected.
  • The value of bitcoin can fluctuate wildly
  • Buyers of bitcoin are not protected from fraud
  • Being a new system, bitcoin might have unforeseen flaws
  • Bitcoin must be converted to other currencies before you can use it in physical stores
  • Bitcoin cannot guarantee its valuation
  • Bitcoin comes with built-in deflation

Disclaimer: The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation andneeds. If any products are detailed on this website, you should obtain a Product Disclosure Statement relating to the products and consider its contents before making any decisions. Where quoted, past performance is not indicative of future performance. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.

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