- Bitcoin Basic Facts
Bitcoin is a virtual coin that most users will never see nor touch. Bitcoin is a peer-to-peer payment system that offers a 21st century alternative to regular and conventional banking method. Exchanges of bitcoin are made possible via wallets software. There are no regulated authority or central bank that monitor and supervise bitcoin circulation, the bitcoin holder’s bank balance were set entirely by the supply and demand in the market.
- Things you can buy using Bitcoin
The value of bitcoin is currently at thousand dollars range, and it dramatically goes bearish and bullish at times, but it definitely not going to be a single digit value. So what are the things you can buy using bitcoin? You can buy coffees, pizzas and fraps using bitcoins. While there were grocery and other stores that starts accepting bitcoin into their payment system.
Virgin Galactic is the most high-profile company that allows payment of bitcoin into their space tourist flights. While Lamborghini is the first motor company that give a head go for accepting bitcoin as a form of payment. And Mel B or Sporty Spice was the first music artists who acknowledge the bitcoin payment for her music.
- Bitcoin Supply
You need to understand that the supply of bitcoin is finite meaning it is limited. The production of bitcoins is called mining with millions of dollar worth mined or exchanged electronically each day.
Every bitcoin transaction is verified using an extremely complex algorithm and these verifications are done by a large network of mining computers competing against each other. When a miner successfully verifies a transaction he/she is rewarded with a small amount of bitcoins.
This is also how new bitcoins are introduced into the system and mining is a lot of work globally. The network of mining computers is now over 250 times more powerful than the world’s top 500 supercomputers combined.
- Bitcoin Value
You basically never hold any physical coin when you talk about bitcoin but the deciphering the value of bitcoin is not that easy. Bitcoin value tends to fluctuate, it goes up and down alternately depending on the supply and demand of the cryptocoins.
There were times when the Bitcoin value crashed to $2 and then it soars up to $10,000 USD per Bitcoin over December of 2017. So you primarily cannot depend on its value because the changes are quick and drastic.
- Bitcoin and Bankruptcy
You need to understand that bitcoin price can immediately loose it’s 80% of its value in seconds so you need to be certain if you want to keep a bitcoin. The perks of having a bitcoin with high value is amazing but seeing your bitcoin loose its value in mere seconds could cause you bankruptcy.
- Bitcoin Regulation
Bitcoin as a cryptocurrency is an online peer to peer exchange meaning it could probably supersede the traditional banking system because it works outside any government regulation. Bitcoin suffered banning in many regions like Asia, Europe and North America. China specifically banned their local banks into trading bitcoin and are currently implementing strict rules with regards to cryptocurrency trading.
- Bitcoin is Limited
There are limited number of bitcoins in circulation to make sure that the value of Bitcoin is not lost and that means that supply will run out at around year 2140 which is a long way to go. Though it may ran out of value it doesn’t mean that miners will no longer be rewarded because they will still be paid for their efforts through transactions fees.
- Bitcoin as the future form of finance
You need to see that bitcoin or other cryptocurrency prepares the future for a cashless transactions. It defies regulation and it defies the law of bank rules regarding money transaction in a global perspective so it is not impossible that cryptocurrency will take over on some transactions.
Wikileaks is an online organization that relies heavily on donations and there were no banks/regulated money transfer that allows to remittance into their account, so what they did is they use Bitcoin donations to keep the site going and keep their advocacy running.
- Satoshi Nakamoto and Bitcoin
Bitcoin and Satoshi Nakamoto goes hand in hand because Satoshi is the mind behind the creation of Bitcoin. He launched the software in 2009, and stated that Bitcoin is better than Gold. It is believed that Satoshi possess approximately 1M Bitcoin which is equivalent to almost 1.1B USD.