Bitcoins

What is Bitcoin?

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto and released as open-source software. It is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency .

Transactions are made with no middle men – meaning, no banks! The price of bitcoin skyrocketed into the thousands in 2017.

Why Bitcoins?

With the help of bitcoins, international payments are easy and cheap because they are not tied to any country or subject to regulation.

Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

Owning Bitcoins

 Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. Bitcoins are traded from one personal ‘wallet’ to another ( peer to peer communication).

Anonymity

Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.

Why bitcoins in demand?

1. It does not rely on a central bank.
2. Due to limited supply, people will pay more to get the coins they think have value.
3. It can be used for investment.

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.

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