The Truth About Bitcoin and Cryptocurrency

If you bought just $1000 of bitcoins in July 2010, you would now have over $90 million on your hands From a mere $  pop seven years ago, the cryptocurrency has steadily been climbing in value. What’s driving bitcoin’s surge in value? One reason could be the recent upgrades to the system — transactions are faster, and fees are lower. Another reason might be simply that more people know about it and are comfortable with the idea of a cryptocurrency — including investors.

As more mainstream traders and investors get on board, the currency is seen as increasingly robust. For the uninitiated, bitcoin is a virtual currency created by a mysterious individual who goes by the name Satoshi Nakamoto, though that is most certainly not his actual name. “Nakamoto” introduced his idea for the cryptocurrency in a research paper in 2008, and it was implemented in 2009 as open source code. His reason for creating bitcoin came down to the flaws he saw in the current system banks debasing currency, a lack of privacy and security, banks’ predatory lending practices, and the difficulties and expenses with transferring money.

Bitcoin is not actually a coin, but a line of unique code. And like the dollar bill today, bitcoin has value because people give it value. Like gold, there is a fixed amount of bitcoin that can exist in the world — 21 million. Bitcoin runs on blockchain — a digital ledger that keep tracks of every single transaction made in the bitcoin network.

Making it especially secure because everything is public and everything is tracked It’s the world’s first open financial network. As people become increasingly wary of government control over individual assets, bitcoin becomes more and more viable: your own personal bank that no one can touch. Your bitcoin is stored in a wallet. This wallet can be a digital wallet or even a physical one — wherever you think your unique key — a long string of numbers that is yours and yours alone will be safest. If you’re looking to invest in bitcoin, you can do so in three different ways: Number one, you can mine your own – which it’s very difficult.

As competition for mining bitcoins has increased, only those with powerful computers and cash to shell out for energy costs can keep up with processing the increasingly difficult calculations. Number two, buy some from an online exchange Or number three you can buy shares in a fund that invest in bitcoin. And if you’re looking to cash out, you can do so by selling your bitcoin directly to another user in exchange for another currency, or in an online exchange. Bitcoin’s real world value may be slower to develop. As a day-to-day currency, it’s still hard to use. While there are some brick-and-mortar establishments that accept the currency – from hotel chains like Howard Johnson to certain restaurants – it’s still difficult to use out in the real world. Online, certain goods and services can be bought with the currency. As more companies and retailers begin to recognize the currency’s growth, adoption will follow.

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15 Comments on "The Truth About Bitcoin and Cryptocurrency"

  1. I lost all my bitcoin, now I am setting up a go fund me account. If any one want’s to donate. My adress 13DtPZqcG2ST7BYRKPaq5fWmSJuCbWzgxp any amount is welcome.

  2. It’s Chinese obviously to undermine the dollar, and ultimately to destroy the West.
    It’s traceable and destroyable when necessary or useful by the creators.

    When you hold a dollar and you personally hand it to someone ,you are waving a symbol of American war success.People have died for that ( lots of innocent lives usually in horrible ways).

    In the back of your mind you understand , you could ,should you refuse it …be the next Kadaffi.

    That said…

    One thing is sure.Bitcoin is as about as invisible as the darknet was.

    Thanks for these insights into this interesting currency .

  3. Cryptocurrencies will be the new trend just as debit/credit cards took over. It will be a long transition to fully adapt cryptos

  4. Banks don’t like bitcoin because they can’t fractionally lend it out and charge interest on it and loan 90% deposits out on it at interest.

  5. I doubt the name of Bitcoin’s creator is Satoshi Nakamoto it could have been a collective. But one thing is certain Bitcoin and other crypto-currencies dubbed decentralized currency, is a direct competitor to US Dollars Centralized currency hence the aristocracy people who have wealth and power to do what they want and control who and what they want legally and will do anything to discredit BITCOIN so in saying that the foundering farther and catalyst of decentralized currency will remainSATOSHI NAKAMOTO

  6. Bought some Flash Coin today people.. I can’t be more excited!! But damn those guys need to hire a web designer

  7. I heard a story about someone who bought two pizzas for 10,000 bitcoins and the bitcoins a few years later were worth $170 million dollars. Ok, if this person had kept them and decided to cash the 10,000 bitcoins in for the $170 million dollars,who would pay the bitcoin holder the $170 million dollars?

  8. That Asian VC guy should wipe his nose. I can’t take him seriously. Does he do his business with that on his nose?

  9. Cryptocurrencies are the future. Anyone thinking otherwise is deluded. Get in early while you can.

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