Bitcoin is the oldest and most popular cryptocurrency known. The history of the emergence of Bitcoin goes back to January 3, 2009. “What is Bitcoin and how does it work” This question is becoming more and more popular with the increase in popularity of Bitcoin. “What is Bitcoin Guide” will help you start your journey with knowledge.
Over 16.7 million bitcoins were traded as of December 2017, with a total value of around $250 billion. It is still not possible to compare against what has been traded in the US dollar currency, which is traded in trillions.
Also, there are questions that began to appear with the advent of December 2017, such as: “What is Bitcoin?”, “What is Bitcoin for beginners?”, “How does Bitcoin work?” These questions topped the search titles on the Google search engine (Google). As the whole world wanted to know the general facts that should be known about Bitcoin.
The inventor of Bitcoin – an individual or a group known by the pseudonym Satoshi Nakamoto – has determined the total number of coins that can be traded at less than 21 million. The production of these coins (or mining, as they are termed in cryptocurrency) is expected to take until the year 2140.
The Bitcoin network is decentralized, meaning that no one controls it. It is built using blockchain technology
Bitcoin leads other cryptocurrencies, not only in terms of price, but also enjoys the acceptance of many traders. However, its increasing popularity has made it more complicated for everyday purchases due to the sharp increase in fees paid and the slowness in approving transactions. Therefore, Bitcoin is seen as an asset rather than a currency.
Bitcoin is also very popular with speculators who seek to get the most benefit from price fluctuations. Getting started with bitcoin is getting easier as the days go by. Its price is volatile with percentage swings up and down which can be up to double digits. In 2017, the price of Bitcoin soared from under $1,000 to over $14,000, until at one point it reached $64,000. Some predict that the value of this currency will exceed tens and perhaps hundreds of thousands of US dollars, while some believe that it has no value in the market and call its high price the bubble.
In any case, Bitcoin is attracting more users and merchants around the world because it allows bypassing banks and other financial institutions and enables them to conduct operations faster and at a lower price. The cost is the same, for example, when converting $1 worth of bitcoin or $100 million worth of bitcoin. Bitcoin also offers more anonymity than traditional banking (although not 100% hidden). People have more control over their money, as there is no government in control of the supply, or a bank that freezes the account. However, some governments have banned the use of Bitcoin (such as Russia), or restricted its use (such as China).
To sum up, Bitcoin, like other cryptocurrencies, is still under development, and no one can know what opportunities or challenges the future may bring. It is not possible to know what might happen to traditional currencies, either. It could lose its value, it could be frozen in a bank account, or the entire payment system could be hacked.