Bit Coins in Online Marketing

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What is a Bit Coin?

Bit coin is one of the digital currencies created online by solving complex mathematical problems. They are not created like Rupees, Euros and dollars.  Bit coins are crypto currencies created by lines of computer codes. No one controls the bit coins; there is no centralized bank which controls the production of these coins. It is a form of digital money.

 It is also known as crypto currency created by high performance computers. These currencies come with security features of cryptography like how the digital money are transferred and received through online securely. Government doesn’t have any control to these currencies.

Origin

 In the year 2009 the first bit coin was introduced by Satoshi Nakamoto a software developer. He disappeared from the world and his accounts are no longer active and his crypto currency in wallet is never spent. It was the first crypto currency in existence. Bit coins can be stored in person’s hardware which is called as the cold storage and cannot be accessed by others. But if it is stored as software in internet then there is a higher risk of losing the digital currency.

 Bit coins are controversial because there is no centralized control. It cannot be frozen or checked by any tax company or financial banks. There isn’t any law against Bit coins. The creation of bit coins will stop once it becomes 21 billion. The bit coin account has several address, it holds the details of the transaction but not the person who does the transaction. So it always remains as a puzzle in this crypto currency.

Bit coin Mining

It is a process of verifying the transactions and adding to the public block chain through which the new bit coins can be released. A person with internet connection and hardware can do this bit coin mining. The mining can be done by collecting a block of recent transactions and solving a competitive math problem. The person who solves the problem will get the reward and jumps to the next block of transaction in the block chain, such as the bit coin mining is done. Miners pay the transaction fee and solve the block continuously to release a new bit coin.

 Mining is difficult and latest mining are done by ASIC’s. Use of the CPU, Graphics cards will consume large amount of electricity and by solving Math problem the bit coins can be produced.

Bit coin in online marketing

The first purchase was done online in 2009 by bit coin. There were many ups and downs starting from those periods in bit coins. It is the most used popular currency in online marketing. Once the bit coin is installed in your smart phone or computer it will create a bit coin address. The wallets keep the secret key which is used to do the transactions and a proof from where it has come.

DELL and Microsoft are the popular companies which accept bit coins in online purchase. In this, the bit coin is a peer to peer currency to transfer online. Bit coins are very secured way of transaction which is also a cost effective way for transaction. The value of the bit coins may increase in the years to come.

It is also an emerging technology like accepting payments as bit coins in online purchase of goods. It increases the privacy among the marketers to sell things without any risk of exploitation, where there won’t be any theft to the data’s of the marketing companies. Any company that accepts bit coins should have a bit coin wallet. Nowadays many governments accept the bit coins in online purchase.

 Many countries like US, UK, China and Japan started accepting bit coins and its exchanges are in many countries. It will set a trend in the marketing industry in the years to come. Bit coins allow 300,000 transactions per day when compared to the other type of crypto currencies. It has a major benefit to the online marketers to sell their products safely with all the security features and transaction can be done very fast using the cryptography encryption.

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