What is Bitcoin? A Beginner's Guide: Bitcoin 101
You have probably heard of Bitcoin but may have no idea what it is. No worries. This article will give you a straightforward overview of Bitcoin and whether you should own this popular cryptocurrency.
What is Bitcoin?
Bitcoin is a digital currency that uses something called peer-to-peer technology to facilitate payments. Bitcoin is the largest and most popular cryptocurrency. With Bitcoin, you can purchase goods and services all around the world. Transfers of Bitcoin are almost instantaneous and completely anonymous.
What is Bitcoin worth?
As of December 2020, one Bitcoin is worth about $19,000. However, Bitcoin currency can be divided down to eight decimal places. That means that you can transfer and receive as little as 0.00000001 Bitcoin or BTC. In the future, it may be possible to create even smaller transactions for the cryptocurrency.
When was Bitcoin created?
Bitcoin was created in 2009.
Who created Bitcoin?
Bitcoin was created by someone who goes by the name of Satoshi Nakamoto. Mr. Nakamoto published a white paper in 2009 entitled, "Bitcoin: A Peer-to-peer Electronic Cash System." In addition to publishing this whitepaper, Mr. Nakamoto also implemented the software and released the open-source code in January 2009.
Satoshi Nakamoto is widely believed to be a pseudonym. While some have claimed to be Mr. Nakamoto, it is generally believed that Bitcoin's creator is still anonymous.
How is Bitcoin created?
Bitcoin is mined by a decentralized process known as "mining." A person mines for Bitcoin by securing the entire Bitcoin network and processing transactions. In return, the miner receives Bitcoin as payment.
How many Bitcoin are there?
As of December 2020, there are approximately 18,500,000 Bitcoins in existence. In total, there will be 21 million Bitcoins in circulation. The last Bitcoin is expected to be mined in the year 2140.
Why should I care about Bitcoin?
Bitcoin makes it easy to secure almost any amount of money to anyone worldwide, practically instantaneously. Also, the entire process can be anonymous for both parties. Another reason to care about Bitcoin is that this cryptocurrency is becoming more widely accepted by people and businesses worldwide. With Bitcoin having a limited supply, central banks can not devalue the currency through money printing as they do with fiat currencies like the US dollar (Think inflation).
How do I buy Bitcoin?
You can buy Bitcoin by taking the following steps:
1. Get a digital wallet - This wallet is where your Bitcoin and other cryptocurrency is secured. Your wallet may exist online or can be a physical flash drive
2. Choose a Bitcoin trader - There are several traders where you can buy and sell Bitcoin, such as Coinbase.
3. Select your payment method - You can use a credit card, debit card, or bank transfer to buy Bitcoin through a broker.
4. Buy your Bitcoin - Once you have cash in your trader account, you can buy Bitcoin.
The future of money?
Many financial experts believe that Bitcoin is the future of money because of its decentralized nature and ease of transfer. If you are interested in buying and owning Bitcoin, be sure to talk to a financial expert before making your final purchasing decision.
