Things to know about Bitcoin

Basics of Bitcoin

 Bitcoin is a digital virtual currency created from computer code. Unlike a real world unit such as US dollar or euro, it has no central bank and is not backed by any government or office.

Instead, Bitcoin’s comunity of users control and regulate it all along. Advocates say this makes it an enormous alternative to traditional currencies because it is not subjected to the urge of a state that may devalue its money to boost exports, for example.Just like other currencies, Bitcoins can be exchanged for goods and all services — or for other currencies — provided the other party is ready and willing to accept them. 

 Bitcoin was launched in 2009 as a bit of encrypted software  written by someone using the Japanese-sounding name Satoshi Nakamoto.

Hundreds of other digital currencies followed but Bitcoin is by far popular and better, with an increasing number of merchants accepting digital currencies for payments. 

Value of bitcoin

 When it first came into existence it was worth some US cents. Some years after Bitcoin topped $1,000. It’s now worth more than $2,300, with commentators suggesting some are buying it as an alternative bet in times of global economic unreliability.

The confused withdrawal of high-value notes in India, and Chinese controls on the purchase of foreign currency have also been cited for its rapid rise.There are presently more than 16 million units in circulation. Some economists say the limited number of Bitcoins mean its price will increase over the long time, making it less useful as a currency andmore a vehicle of storage, like gold .