What is Bitcoin?

What is Bitcoin?

by Stone

Bitcoin surpasses all expectations by becoming the top crypto currency in the world and having people invest billions into it. Now you may be asking yourself, What is a Bitcoin? Well Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.

Bitcoin is a great thing for high school students to start getting into, I in fact have a tiny amount of money into bitcoin and I find it quite fun watching bitcoin and watching my investment go up. Also, I think bitcoin is a great way to start learning more about crypto currency. It is very easy to understand and I think I have written everything the average person would need to know about bitcoin in the following paragraphs.

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.

No one knows what will become of bitcoin. It is mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations. Governments are concerned about taxation and their lack of control over the currency.

In fact, Elon Musk has just recently made it so you can purchase a Tesla with Bitcoin. Musk even added #bitcoin in his bio on Twitter recently, “I think bitcoin is really on the verge of getting broad acceptance by conventional finance people” Musk said.

Now one bitcoin is worth $74,138.23, bitcoin has gone up by $58,502.63 in the last 7 years. Although some of the richest people in the world still don’t believe in it like Warren Buffet, Warren says “crypto currencies don’t have any real value you can only sell it to someone else, you can’t do anything with it”.