Trends in Technology
What is bitcoin? How do I get it? What is it good for? If you’ve been asking yourself or a friend these questions lately then you’re not alone. The recent rise in valuation of this cryptocurrency to $10000 has many people asking the very same questions as you. Luckily for you, we have all the answers to your questions!
In the past year or so, Bitcoin has moved in only one direction and that is upwards. Recently, the cryptocurrency reached the $10,000 mark—making it one of the most valuable investments around. Now, if you’ve only recently heard about Bitcoin or only after its rise to $10,000 in valuation, then you may not know a whole lot about it. In fact, your knowledge of Bitcoin may be close to zilch. The good news is that we are going to reveal everything there is to know this cryptocurrency so that you can make an informed decision regarding Bitcoin investment. The first lesson will be on cryptocurrencies.
What is Cryptocurrency
As you probably know by now, Bitcoin is a Cryptocurrency. But, what is a cryptocurrency? A virtual currency, cryptocurrency is created and used by private individuals or groups as a digital exchange means. A cryptocurrency is often referred to as an alternative currency because it isn’t regulated by governments. Thus, this currency exists outside the bounds of state monetary policy and isn’t affected by it. While Bitcoin is the most prominent and most widely used cryptocurrency, it is not the only one around. There are many other cryptocurrencies. But, our focus will be solely on Bitcoin because that is the cryptocurrency you’re interested in.
All About Bitcoin— What It Is, Its History, and Why You Should Invest in It
Setting a new record, Bitcoin reached the $10,000 mark recently. However, things weren’t always as rosy as this for the cryptocurrency. In 2011, Bitcoin was worth $1 and had only a handful of users. Today, its user-base is over thirteen million. So, how did the journey of Bitcoin start and what is it exactly? Let’s take a look.
Used to instantly transfer value to anywhere in the word, Bitcoin is a digital currency that is not issued or controlled by any government or bank. An improvement on existing payment methods, Bitcoin is an open network managed by users. Now, there are two different things that the term ‘Bitcoin’ refers to. The first is a payment network: Capital-B Bitcoin, which is somewhat like the MasterCard payment network. The other thing that the term Bitcoin refers to is the Bitcoin network currency—much like the dollars used by MasterCard in the U.S.
The unique thing about Bitcoin and what makes it different from MasterCard, PayPal, and other payment networks is that it is the world’s first completely decentralized payment network. While Master Inc operates the Mastercard network, there is no one in charge of the Bitcoin network. Instead, it’s a P2P network maintaining the blockchain—a shared transaction ledger.
History of Bitcoin
Bitcoin’s worth was close to zero when it was first introduced in 2009. The first transaction using this cryptocurrency occurred in May 2010 when two pizzas were bought by a Bitcoin user from another user with a payment of 10,000 bitcoins. That’s how much Bitcoin was worth then! However, not long after, the Cryptocurrency stated to grow—reaching $1 in valuation in April 2011. This was just the start of Bitcoin’s rise to the pinnacle.
After getting a bit of media coverage, Bitcoin started to increase in value. By June 2011, the virtual currency’s value had risen to $30 but this inflation in value was short-lived as the cryptocurrency’s value crashed to $2 just before the end of the year. The same was seen in 2012 and 2013—with Bitcoin increasing in value to $250 by May 2013, and then crashing by 80% before the end of the year. However, since 2015, the cryptocurrency has continued to grow—reaching $10,000 recently.
What seemed impossible a decade ago is a reality today. Bitcoin—an unregulated, decentralized currency not backed by a commodity or government, has become more valuable than many traditional investments. And, this trend is expected to continue as more and more people are getting aware of this virtual currency and its astronomical increase in value over the years.
Why You Should Invest in Bitcoin
There are countless reasons to invest in bitcoins. However, we are going to talk about only three top- most ones. The first reasons to invest in Bitcoin is that it is regulated by the government or created by a central bank. This means that when you invest in this cryptocurrency, you won’t have to worry about a government or bank tracking your money and subjecting you to taxation, money control and other policy practices.
Another reason to invest in this cryptocurrency is its ability to bypass banks. Transferred via a P2P network, bitcoin transactions do not involve any middleman bank. So, the entire Bitcoin amount without any deduction is transferred to the intended party. Also, banks and law enforcement agencies cannot seize or freeze Bitcoin wallets and they cannot set a spending or withdrawal limit on them. The third reason to invest in Bitcoin is storing and spending your personal wealth in unique ways. Bitcoins put the control of personal wealth into your hands. Unlike paper money or other digital currency that have no intrinsic value, Bitcoins have actual value in themselves.
There you have—all about Bitcoin: what it is, its history and why you should invest in it. Now that you have all the information you need about Bitcoin, you can make an informed decision about whether you should invest in it.
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