In the past year alone, Bitcoin has managed to grow from $1000 to around $17000 per coin or a bit more than that. And while prices have lowered since then, it’s safe to say that this cryptocurrency is very interesting and it does come with a lot of value and interesting promises. But what is bitcoin and how did this all start? Let’s find out!
Bitcoin is a cryptocurrency that’s basically similar to virtual money. You can’t hold bitcoins in your hands, you will need a virtual wallet with its own address in order to do that. At its core, this is a digital key that you can use in order to acquire or share bitcoins with other people. Upon spending bitcoin, you are telling the entire network that you transferred ownership. Whoever accesses your wallet/key will have access to your money, and that’s why it’s very important to keep the bitcoin wallet very safe.
The reason why this cryptocurrency grew so much is convenience. The fact that you can easily use it perform transactions anonymously is very important. Gone are the days when you needed a third party for performing major transactions. You can do that with the seller/buyer and that’s it. Also, the transaction fees are non-existent either. The process is fast too, usually, you will get your bitcoin within bitcoin after the transaction takes place. Although sometimes that does happen on the spot.
A history of all the transactions is kept in the blockchain, that’s where you can have immediate access to all this relevant information. Since this is a decentralized system, it’s easier to have control over your money. It’s also a system that’s very resistant to censorship. It makes a lot of sense to use it, and the return on investment is huge because of that.
There are some local stores that use bitcoin, but at the same time, you can also find many online stores that allow you to shop only with bitcoin. So yes, there are places where you can spend this currency if you want to, and that’s always something nice to hear and consider. More information can be seen in this guide to bitcoins which makes for an interesting read.
Some people would compare bitcoin with the new gold. Gold isn’t limited as bitcoins are. There are only 20 million of them that can be produced via mining. And while it seems like a small amount, that’s not the case as people still didn’t mine all of them. In the beginning, bitcoin didn’t get to expand the market that much, but the market exploded at the beginning of 2017 where more and more companies started to use bitcoin.
And while the market did crash a bit and the price is lower than what it used to be a couple of months ago, it’s still amazing to see all these features and benefits. It’s just an incredible opportunity and one of the most interesting things you can find out there. So yes, bitcoins can be very handy, even though the process of acquiring them can be a tad confusing and very hard to understand at times