Currently, the world of cryptocurrencies has been evolving and growing, and they are a phenomenon that has impacted the international legal field. Bitcoin is the most popular virtual currency on the market, and more and more people buy it around the world.
Today other virtual currencies are also stable in the market. Cryptocurrencies are digital currencies; they are no physical notes or coins; it is only to circulate on the network.
Bitcoin is a cryptocurrency that has been on the market since 2009, since its appearance, virtual currencies have grown by leaps and bounds. In the market, you can find Ethereum, Litecoin, Dash, among many more.
People use Bitcoin to carry out transactions quickly and safely; it is a decentralized payment system. The transactions are legitimate, do not need to go through the bank, and appear in a short time. You can carry out the transactions you want per day, and with the amounts you want.
Bitcoin has become popular because no entity controls it; it does not belong to a government, company, or bank. User control Bitcoin in the world.
Many people who have this cryptocurrency wonder: Can I transfer Bitcoin to a bank account? It is unknown that users have regarding virtual currencies. In this article, you will have the information you need.
The first thing to keep in mind is that to use Bitcoin or any other cryptocurrency, you must create a virtual wallet or purse to save them. It is a digital wallet where the keys are stored to access your account.
When you have your Wallet, you can start trading in the virtual currency market; you can buy, exchange, or get real money.
What is Bitcoin?
Bitcoin is a currency that works like the dollar or the euro, and with it, you can buy goods and services. The difference it has with traditional currencies is that you cannot have them physically. They are virtual or digital currencies that can only be used online.
Today it is one of the most popular cryptocurrencies that exists. It is an electronic currency that offers novel features, is efficient, safe, and easy to exchange.
Bitcoin is an open-source project that was created by Satoshi Nakamoto (although this is believed to be a pseudonym for its author or authors). In itself, no one knows for sure who was the creator of Bitcoin.
Bitcoin has been on the market since 2009 and was designed to make purchases only through the Internet.
Its code has been used as the basis for hundreds of software projects, and decentralized alternative currencies have come out. In this way, all the cryptocurrencies that are on the market today are born.
The great difference of Bitcoin with the other currencies is that it is a decentralized and independent currency, it is not controlled by any company, state, or financial institution.
How does Bitcoin work?
If you want to use any cryptocurrency, it is necessary to have a virtual wallet or purse to generate a Bitcoin address. For this, they need to download software to their computer or mobile device. This Wallet can be used to send and receive money from other users.
Transactions can be monitored in real-time, and Bitcoin’s sending is instantaneous. Transactions are secure because it has a security algorithm, which are rules that allow you to achieve the necessary security characteristics.
Because of this algorithm, Bitcoin stands out for its confidentiality and integrity. It uses SHA256 security protocols, which stands for Secure Hash Algorithm. The digit 256 refers to the bits of that hash value.
Bitcoin uses the C ++ programming language and works with less than 70 specific commands that can be used, which provides more security and is more difficult to hack. Payments made with Bitcoin are impossible to counterfeit or track.
Transfer Bitcoin to bank accounts
This is a question that many users often ask themselves, but you should know that this is not possible, you cannot transfer Bitcoin to regular bank accounts. First, you need to sell or exchange them in your currency so that you can transfer them to your bank account.
Bitcoin is a form of payment that is currently being used, people search for it because they do not need intermediaries, and the transactions are immediate. To make payments with Bitcoin, you must have a digital wallet or purse.
This virtual currency is kept in an infallible system known as Blockchain and is the same as any physical currency that is on the market. The difference is that it exists in a digital environment called a blockchain or Blockchain.
Banks can only receive physical currencies. They do not receive cryptocurrencies; to receive Bitcoin or any digital currency to your bank account, you must sell them. The first thing you need to do to pass Bitcoin to real money is the following:
- Enter your digital portfolio
- Go to the option to sell
- Enter the amount of Bitcoin you want to sell
- Click Sell to confirm the transaction
- When you have sold your Bitcoin, you will have your money in the currency you have chosen to receive
- Then you can transfer it to your bank account, just follow the steps indicated by the system. This step may take a while, depending on the bank and the country you are in.
You can get Bitcoin by buying it from a friend, for a sale of goods or services, or you can buy it at an exchange office.
The Bitcoin electronic payment system that was unveiled in 2009 allows you to exchange money with people anywhere in the world. Some of its characteristics are:
- Transactions are fast and secure
- Does not belong to any state, company or banking institution
- Can be used worldwide
- You can buy Bitcoin with dollars, euros or other currencies
- It is a decentralized system that is not controlled by any institution, company or bank
- Thanks to its cryptographic system it is impossible to falsify
- Accounts cannot be frozen; you are the sole owner, no one can close your account
- Transactions are irreversible
- The transactions are private therefore it is not necessary to reveal your identity, that is why they are safer to pay online because your bank information is not left
As you can see, Bitcoin has many benefits to receive and send money quickly, and easily, there are no restrictions. It is very safe, and Bitcoin is only yours; anyone cannot access their money without their credentials.
The world of virtual currencies
Cryptocurrency is a market that never stops; people trade bitcoin 24 hours a day, 365 days a year. When you already have your Bitcoin in your Wallet and want to start trading with them or get real money, you will have three options to do so:
The digital money exchange platforms that are known as Exchange are sites for buying and selling Bitcoin and other cryptocurrencies. It is very easy to carry out operations on these platforms; you just have to choose the portfolio from which you want to extract the money, place the amount, and click on sell.
If you choose to receive it in your bank account it will take between 5 and 7 days, in a PayPal account, you will get it instantly in the currency you choose.
Many prefer to have their cryptocurrencies in wallets or paper racks for security and to avoid cyber attacks. But when it comes to exchanging it for cash, it is a little more complicated. These paper wallets are sheets that include a key with which you will have access to your Bitcoin.
To operate with it, you must circulate it on the network to put it in your digital Wallet. The problem with this type of Wallet is that not all digital wallets support cryptocurrencies that come from an offline wallet.
Cold Wallet or hardware
This is a more difficult system to spend your Bitcoin in cash; this is about devices that have external storage that is designed to keep your Bitcoin safe.
In this option you must take the money from the hard disk to be able to transfer it to the Internet, you may need software to do it. Many times the device itself provides you with such software.
When you are online, you just have to follow the previous steps to put it in your virtual Wallet. The same thing that happens with paper wallets happens with these; it is very complicated that digital wallets accept money from these types of wallets.
Comparison of Bitcoin with other payment methods
Bitcoin is a digital system as well as a currency; if you use it as a currency, it works exactly like traditional currencies. The difference is that it does not have a government entity that issues or supports it, bitcoin is based on a digital system.
One of the main characteristics of Bitcoin is that it does not belong to any government or country. It is a free license and, therefore, does not belong to a private company or a specific person. The users themselves are the ones who keep the platform running.
Below you will see the comparisons or similarities with other payment methods:
Transfer and portable
You can easily acquire goods and services; it is possible to send and receive Bitcoin. You can send it to any part of the world in a few minutes.
Protected against inflation
Inflation is not a problem with Bitcoin because it has an established supply; this means that its production is not unlimited.
Possibility of making large transactions
You can transfer large amounts of money to a person or entity quickly and easily. Nobody will ask you questions like what happens in banks
You can use your Bitcoin wallet to send funds quickly, safely, and easily to any country in the world.
Ability to make small payments
You can transfer minimum amounts to anyone without a problem.
you should not place your data to make a payment, that is, if you make a payment, your data will not remain.
As mentioned before, it is not controlled by a central entity; your Bitcoin accounts cannot be frozen. You are the only one who can move and make changes to your account.
it keeps data loss and theft away.
You can exchange it
you can exchange your Bitcoin for goods or services, as well as for any other currency you want.
Multiple transactions in one day.
Payments made with Bitcoin are processed with very low or no fees.
Where to use or spend Bitcoin?
When you have your purse or electronic Wallet, you can use your Bitcoin to buy goods or services on many web pages. In physical stores, it is more difficult to use cryptocurrencies, but it is not impossible; you should only check with the store first.
Currently, many online stores have Bitcoin among their payment methods. You can use it in online stores like Dell, Microsoft, Expedia, buy gift cards on Amazon, iTunes, eBay, and Starbucks, among many more.
There are also many restaurants, computer shops, travel agencies, clothing sales, clinics that allow you to pay with Bitcoin. In some countries, its use has grown more.
Is Bitcoin legal?
In 2013 Bitcoin was classified by the FINCEN (Financial Crime Execution Network) of the United States Department of the Treasury as a convertible decentralized virtual currency.
The purchase of goods and services with Bitcoin is legal, and the online stores accepted this cryptocurrency as a form of payment, such as Shopify.
The use of Bitcoin is legal; it is the most popular virtual currency in the world. However, in some countries like Japan, people use it as a payment method but not as a currency. And the government regulates it so that people don’t use it for money laundering and terrorism.
In the case of the United Kingdom, people see it as a foreign currency; for Spain, it is a digital asset; in this way, it is governed by the laws of Exchange of goods. The government prohibits its use in countries like Bolivia, Bangladesh, Ecuador,
People must abide by certain regulations in China, Canada, New York.
As you can see, the legality of Bitcoin and electronic currencies vary depending on the country you are in.
If you have a store or business, don’t be afraid and start accepting Bitcoin, you can exchange them whenever you want by following the necessary steps. Remember that you cannot pass them directly to your bank account because banks only accept physical currencies.
Bitcoin transactions are more secure and irreversible, plus you don’t need to put your data. Also, it is a great advantage for merchants to accept it as a payment method because they will be free from fraud and false returns.
To operate with Bitcoin, you only need a mobile device or a computer to carry out the transactions.