Bitcoin has created quite a stir online, this technology is one of the few that have given rise to many debates and an inquisitiveness to explore it, a lot of us are confused and many eager to know more about this phenomenon, Bitcoin is a type of digital currency, created and held electronically. It is not controlled by anyone and isn’t printed like Euros, Rupees or Dollars making it the very first example of a growing category of money that is known as crypto currency.
Bitcoin was invented by Satoshi Nakamoto, a secretive internet user, in the year 2008 before it went online in 2009. Many attempts to identify Satoshi have been made without a conclusive proof.
What makes it different from normal currencies?
However, Bitcoin’s most major characteristic, and the one thing that sets it apart is that it is decentralized. No single institution controls the Bitcoin network. This puts people at ease because it means that a large bank can’t control their money.
Bitcoin can be used to buy things electronically. In that sense, it’s very much like Dollars, Euros, or Rupees, which are also traded digitally.
Bitcoin owner can send Bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.
Bitcoins are stored in a “digital wallet,” which is there either in the cloud or on a user’s computer. The wallet is a virtual bank account that lets users send or receive Bitcoins, pay for goods or save it. Unlike bank accounts, Bitcoin wallets are not insured.
Each transaction of Bitcoin is recorded in a public log, the names of buyers and sellers are never revealed just their wallet IDs are revealed. This lets Bitcoin users’ transactions be private, and also lets them buy or sell anything without easily tracing it back to them. That is the reason why it has become the currency of choice for people online buying drugs or other illicit activities.
Should I invest in Bitcoin?
The biggest question that needs to be answered is whether to invest in it or not. Bitcoin is safeguarded against fraud and theft through an independent and decentralized setup, as well as free from transaction fees. It has given amazing returns to some investors, with the price hiking from a few dollars at the beginning of 2013 to $1,100 by November. People who invested $3,000 five years ago would now be millionaires.
After a few years, its price soared again this year, and it has peaked at $10,000. But the price has also dropped in the past and left in great losses.