Many people have heard of Bitcoins by now, and a good number of those would like to learn more. To help readers find out about Bitcoin read the following ten important things to learn about Bitcoins.
1. One of the biggest advances in the technological field is the introduction of digital currency (also known as cryptocurrency).
One of the first and still best known of these is digital currencies or cryptocurrencies is called Bitcoin. This digital currency was created in 2009 by an anonymous person or group. It was the first of its kind to be created. Unlike standard currency, Bitcoin has no physical form; it consists entirely of computer code. Since it doesn’t have a physical form, you may wonder how it can be used and does it have actual real cash value. As of October 29, 2018, one Bitcoin is worth $6,236.32.
2. The founder of Bitcoin used the name Satoshi Nakamoto.
This may be a pseudonym, but it is unknown whether or not it is. If it is a pseudonym is it for one person or for a group of people? While active during Bitcoin’s development, Nakamoto disappeared in 2010 into anonymity and has not been heard from since. It is unknown if Nakamoto is still involved in Bitcoin in any way; however, about $1 million USD worth of Bitcoin is still held by the entity with that name.
3. To keep Bitcoin, you will need to have a digital wallet.
This is similar to a physical wallet in that it is a safe place to keep your money. Bitcoin’s digital wallet includes a unique identifier that associates your Bitcoin with you. Like your physical wallet, others cannot access it without your permission.
4. To receive Bitcoin, you must give your unique address to the sender.
This is similar to how PayPal works, except that PayPal uses email addresses. Bitcoin, on the other hand, uses wallet addresses. It is also possible for one person to have several different Bitcoin addresses. You can receive Bitcoin as payment, you can purchase them through an exchange, or you can mine for them. There are multiple websites that explain how to mine for Bitcoins, so if you’re really interested, you can do some research to find the one that makes the most sense to you.
5. You can spend Bitcoin through similar means.
You can also use Bitcoin at some retailers, now, and there are several charities that now accept Bitcoin donations. Until Bitcoins become more familiar you will need to look for retailers that take will them.
6. Bitcoin mining is the term given to the process of calculating an extremely complex math problem, and when the answer is found, Bitcoins are awarded.
At first, a single computer was sufficient, but as problems became more complex, better hardware became necessary. It is now necessary to either join a mining group or get specialized equipment (known as ASIC – Application Specific Integration Circuit) to mine for Bitcoin. You can find Bitcoin mining groups online simply by typing “Bitcoin mining groups” in the search bar and pressing “search.”
7. The thing that makes Bitcoin special is its anonymity.
Unlike other transactions, no personal information must be traded when trading Bitcoin. It is unnecessary to know the names, locations, email addresses, etc., of people trading Bitcoin. Of course, since there is anonymity, it may be possible for illegal activities to be conducted using Bitcoin. Since Bitcoin has become popular, there have been other digital currencies created, including but not limited to Litecoin and Canada’s MintChip.
8. Some worry about Double Spending.
Because the currency is digital, it seems possible to copy it and use it more than once. However, Bitcoin transactions are always checked against a public list, which prevents this kind of fraud.
9. The reason Bitcoin was created was to wrest power from central bankers and the government.
Since those entities have no power whatsoever over Bitcoin, it returns power to the people. This does not mean that governments and bankers accept Bitcoin simply because they do not have control over it.
10. Whether or not you choose to invest in Bitcoin is entirely up to you.
While it is still less than a decade old, it is still relatively volatile. While its value has stayed high most of its life, there are no guarantees that they will remain as such. After learning more about Bitcoin, you will need to decide for yourself if you want to take the risk of investing in them.