$BTC
Bitcoin (BTC) works as a payment method by allowing users to send and receive money without a central authority like a bank. Here’s how it generally works:
1. Wallet Setup
Users need a Bitcoin wallet (like Coinbase, Trust Wallet, or a hardware wallet).
The wallet contains a public key (address) to receive BTC and a private key to authorize payments.
2. Making a Payment
When buying something, the seller provides their Bitcoin address. The buyer sends BTC from their wallet to the seller's address. The transaction is broadcast to the Bitcoin network.
3. Transaction Confirmation
The network (miners) verifies the transaction and adds it to the blockchain. This usually takes 10 minutes per confirmation (1 confirmation is often enough for small transactions; more for large ones).
4. Receiving Payment
Once confirmed, the BTC is available in the seller’s wallet. The seller can then hold the BTC, convert it to local currency, or use it elsewhere.
Benefits:
. Low international transaction fees
. No bank intermediaries
. Irreversible transactions (reduces fraud)
Drawbacks:
. Price volatility
. Slower than traditional payment methods
. Not universally accepted
The image below shows the payment method of the bitcoin (BTC):