Bitcoin is one of the most controversial systems of money recently. It is also the highest valued cryptocurrency at $11,278 per 1 bitcoin. Millions of people have invested in Bitcoin through the years, and more and more people become interested and engrossed in this concept of currency every day.
Although Bitcoin has a multitude of investors, more people are skeptical than convinced. People tend to hold off investing in Bitcoin because of worries about the certainty of its future and its security. Before you decide whether to invest or not, here are some of the things that you should know about Bitcoin:
The creation of Bitcoin
Bitcoin is a digital currency that was discovered in 2009 by an unidentified person using a pseudonym, Satoshi Nakamoto. It was designed as payment for different goods and services although it is more known as a trading investment. It can be used to purchase different kinds of items and book services or reservations in hotels. It can also be converted into gift cards which can be used in Amazon and other stores.
Bitcoin can be bought and sold using different currencies. Through different automated cryptocurrency trading platforms like Bitcoin Bank, individuals can independently purchase and sell cryptocurrencies in the market. You can learn more about these cryptocurrency systems in this complete review of Bitcoin Bank.
Banks and other middlemen are unnecessary in transactions. However you can opt to avail services from these banks, financial management firms, and cryptocurrency trading platforms, as mentioned above, that can help you manage your cryptocurrencies like Bitcoin.
Through mining, people earn millions of dollars in the Bitcoin cryptocurrency. Mining bitcoin serves as a competition that consists of solving mathematical problems by a 64-digit combination computed through special equipment or software. For every math puzzle solved, 12.5 bitcoins are rewarded to the first person or mining pool, a group of miners, who can solve the problem first. However, mining bitcoin is so complex that you could spend more on the special equipment you need than what you may actually earn in mining. The supply of bitcoin is marked at 21,000,000 only. The more people mine, the faster bitcoin reaches this 21 million quota.
The first step to acquiring bitcoin is setting up your wallet ID. Bitcoins are stored in this digital wallet which functions like an online bank account where people can withdraw, deposit, receive, or send money and bitcoins virtually. It can be stored in a Cloud or the hard drive of your computer. Bitcoins and the transactions we can do with it are all done digitally. It is tracked by blockchains which serve as a database of the histories of each bitcoin.
Anonymity of investors
Instead of your identification, the bitcoin you earn only traces back to your wallet ID.
Government’s lack of control
The supply of bitcoin is not regulated by any government. There are still no laws and government policies that encompass the regulation of transactions under bitcoin although Japan, China, and Australia are currently working on it.