Bitcoin: what is it actually?

Bitcoin

Could you ever imagine that the history of a currency may be related to pizza? Actually, two of them, bought by the developer Laszlo Hanyecz for digital 10,000 BTC for the first time.  This prominent event happened on May 22, 2010, and gave a start to virtual bitcoin payments for real products. The great thing about the transaction is that its value is estimated as high as at USD 20 million now.  Quite a dear price for a couple of pizzas but who could know that!

One Bitcoin (btc) was rated even higher than an ounce of gold in March 2017. It rapidly gains its popularity. Speaking the language of figures, around 10,000 transactions were fixed in 2009 which triple increased in January 2017. The currency proves to be a reasonable and more reliable investment and becomes quite popular in Asia.

Bitcoin is a cryptocurrency, i.e. digital money which is considered to be invented by Satoshi Nakamoto in 2009 (even there is no unanimous opinion about who created it). The great advantage of this payment system is that it does not involve any intermediaries, e.g. banks.

 

How to get Bitcoins?

This cryptocurrency is kept in a Bitcoin wallet which can be managed either via a computer or a mobile app.

Each transaction is fixed by the special blockchain system. Once payment is sent, it is to be verified and undergoes a proof algorithm or mining which implies solving complicated mathematical tasks. Anyone can be a bitcoin miner if they have a computer enough equipped to connect to their network.

The money can be received as a payment for sold goods or provided services. You may also buy bitcoins for a real currency at a certain rate and if you don’t need them anymore you can exchange them back any time.

Bitcoin wallet

Where can I spend it?

This cryptocurrency can be handled in special places. Most popular are WordPress and Reddit. Obviously, you can’t pay the digital money everywhere yet but a Bitcoin Visa Debit card is available as of now and makes life simpler.

 

Some issues of the system

Alongside with its benefits, the cryptocurrency still has some minuses. These are as follows: hardware capacity, a limited amount of transactions within a certain period of time, price fluctuations, and a target to hackers as any software system. Users are not identified and it does concern the government due to the possibility of operations which violate the law such as to finance criminals, etc.

However, as the system is constantly developing, these issues are gradually solved and improved.

 

Prospects for the future of Bitcoin

There are more than 200 cryptocurrencies in the world so Bitcoin is far from being one-of-a-kind. However, it is ranked top competing with Ethereum, Ripple and NEM and others. It is still number 1 even though it was considered to fail for a hundred and something times. Recent researches show that it does have its future. With some contras, there are still a lot of pros. So if you are searching how to buy Bitcoins you are on the right track! This cryptocurrency is not only a means of payment but a commodity to invest money as well which at present is believed to be a way better than others.

Bitcoin in the future

If you have some questions, or others, please, write comments!

Thank you

 

Sincerely, Yar

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