About Bitcoin

Erik voorhees

”The ability to exchange and store money instantly, anywhere, at near-zero cost is one of mankind's greatest achievements, the effects of which will be profound. Bitcoin has done to money what the Internet did to communication, and soon, “cryptocurrency” will just be known as “currency””

Eric Voorhees CEO & Founder at ShapeShift
Jon matonis

”Bitcoin offers everyone an equal participation in the financial system as it knows no boundary, identity, origin, or economic class.”

Jon Matonis Director of Bitcoin Foundation and Cubits Board Member
Tony craddock

”The buzz around Bitcoin is being heard at boardrooms across the world of payments. In today’s world where trust between individuals and institutions is low, cryptography will allow us to do without those central institutions that are there to enforce high levels of trust”

Tony Craddock Director of the Emerging Payments Association

Bitcoin in the press

Bitcoin explained

What is Bitcoin?

Bitcoin is a decentralised, opensource payment system made possible by decades of innovation in computer science. With Bitcoin, users can send money directly to one another, without the use of a third party and with fees totalling less than a few cents - all over the world.

As digital currency, Bitcoin don't physically exist – they are actually numeric codes secured by layers of cryptography and stored on your computer. Each individual Bitcoin is divisible into 100,000,000 individual increments, called Satoshis. As of 2015, there are over 14 million Bitcoin in circulation. Only 21 million will ever be mined.

Bitcoin's intangibility is perhaps best compared to the credit or debit card data you provide to online merchants when making purchases over the Internet. Just as with the money on your card, you don't physically hold the cash. Unlike credit cards, there is no bank to deal with, no plastic to keep, and it can't be stolen just by somebody knowing the numbers on your card.

What are the benefits
of using Bitcoin?

  • Independence

    Unlike traditional currencies, Bitcoin is not controlled by a Central Bank or a third party. The network does not provide any actor with an unfair advantage.

  • Simplicity

    Transferring Bitcoin to another part of the world requires only an Internet connection and a wallet application. Traditional bank transfers require excessive documentation and excessive bureaucracy.

  • Speed

    Bitcoin transactions can reach other parts of the world in a matter of seconds. Bitcoin is for finance what email was for the postal industry: an infinitely cheaper and more efficient alternative.

  • Low Cost

    Bitcoin transaction fees are minuscule compared to regular banking transaction fees. With Bitcoin, users don't have to pay any financial institution. Fees for transactions of any size are about $0.02, and are directed to the miners who help keep Bitcoin secure.

  • Transparency

    Bitcoin transactions are stored in the blockchain, a public ledger, which is distributed across the Internet. This means that transaction records are freely accessible, and that anyone can look up Bitcoin transaction histories, addresses and mining results.

How do I get Bitcoin?

Simply sign up (or download one on your laptop) for a Bitcoin wallet, locate your wallet address and use it to receive Bitcoin. You can sign up for a Cubits Wallet, which has Buy/Sell features in over seventeen different currencies built into its interface. With a Cubits Wallet, buying Bitcoin is fast, simple and secure!

How do I spend Bitcoin?

There are many ways for you to spend your Bitcoin. For once, you can spend them online at a variety of e-commerce sites. When you use Bitcoin to buy goods online, you will be directed to a pay interface where you will receive a Bitcoin address to send your Bitcoin to - fast and secure. You can also spend them offline, at point of sale terminals of accepting shops. When you use Bitcoin to pay for goods in physical stores, you can conveniently use a mobile wallet on your smartphone to make your purchase.

Where I can spend Bitcoin?

Plenty of merchants accept Bitcoin! To see the full list, click here.

How is the price of
Bitcoin calculated?

The price of Bitcoin is freely formed on online exchanges. Exchanges provide buyers and sellers with a place to connect and exchange Bitcoin for an agreed upon price. At any point, the supply and demand of Bitcoin can move the price up or down. Cubits connects with several exchanges at all times to try and find the best price for its users. Read more about how we calculate the price for our Bitcoin exchanges here.

Can the Bitcoin network
be hacked?

Currently, the technology required to hack the Bitcoin network doesn't exist. To do so, hackers would need access to massive amounts of computer power, or to find a way to decode the complex cryptography that secures Bitcoin. Presently, neither of these scenarios is plausible.

Your wallet or exchange service, however, can be hacked. This is why it is important to choose a wallet or exchange service with high security standards. At Cubits, we secure 100% of our customers' Bitcoin in deep cold storage and secure all transactions with multi signature technology.

Is Bitcoin safe?

The Bitcoin network does not store or require any of your personal data, and keeps all of your transaction processes safe and secure with NSA-designed cryptographic SHA-256 protocol. The network also relies on decentralised consensus, which means that there is no single point of failure or weak link that can compromise the network. Additionally, a team of programmers is always working on refining and improving the code, and all modifications are publicly submitted for a consensus agreement.

What is a Bitcoin wallet?

A Bitcoin wallet is an application that interfaces with the Bitcoin network and allows you to make transactions with Bitcoin. Different wallets offer different features depending on the users' needs, but their purposes are all the same: they enable you to receive, store and send Bitcoin. For instance, the Cubits Wallet has buy and sell features built in, making it very convenient for you to convert into and out of Bitcoin at any time.

What is the blockchain?

The blockchain is a distributed database that holds a transaction ledger containing every verified Bitcoin transaction ever completed. Each entry contains three parts: the sender's address, the receiver's address and the amount of Bitcoin sent. The blockchain is being continuously updated to show new transactions.

What is a Bitcoin private key?

A Bitcoin private key is attached to a user's public address and allows users to send Bitcoin to another address. The private key proves to the network that you own the Bitcoin you are sending – it is similar to a password, so be sure to keep your private key safe.

How do I get a Bitcoin address?

Addresses are generated from your private key and allows you to receive Bitcoin from other users on the Bitcoin network. To get an address, simply register for a wallet service, and a 34-36 character address will be automatically generated from your private key. Your wallet address will function like a postal address: anyone who knows your address will be able to send you Bitcoin.

Who controls Bitcoin?

Bitcoin and its payment processes are not controlled by any central authority. As a result, no single institution can exert control over the payment system as is the case with government-controlled banking systems. This prevents users from exposure to risks associated with fiat currencies like hyperinflation, deflation and more. Additionally, Bitcoin's structure and design makes the previously unimaginable possible: transactions are instantly completed, and there are no exploitative bank fees attached to your transaction.

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