Bitcoin, what the hell is that?

What is Bitcoin?

Bitcoin is a new currency that was created in 2009 by an unknown person who named himself Satoshi Nakamoto. Transactions are made with third party, so no need for banks! Bitcoin can be used for all kind of transactions, from small to big. But much of the hype is about getting rich by trading it. The price relies for the greatest part on speculation. The price of a Bitcoin can fluctuate alot.

Why Bitcoins?

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 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.

Acquiring Bitcoins

Buy on an Exchange
Many marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Coinbase is a leading exchange, along with Binance and Bitfinex. But security can be a concern, bitcoins worth millions of dollars were stolen from Bitfinex when it was hacked in 2016.

Transfers

People can send bitcoins to each other using wallets on mobile apps or their computers. It’s just sending cash digitally.

Mining

People compete to 'mine' bitcoins using computers to solve complex math calculations. This is how bitcoins are created. Currently, a winner is rewarded with 12.5 bitcoins. Roughly every 10 minutes a bitcoin is made.

Hodl Bitcoins

Bitcoins can be stored in a 'digital wallet' which exists either in the blockchain 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.

Anonymity

Though each bitcoin transaction is recorded in a public log called the blockchain, names of buyers and sellers are never revealed, only their wallet adresses. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them.

Future in question

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. If you ask me , Bitcoin can't be stopped, it's better, faster cheaper and mostly anonymous. This is what the world need today.