Bitcoin Review

What Is Bitcoin?

Bitcoin is a cryptocurrency, meaning that rather than being a physical coin, it is actually a computer code that’s encrypted. Trade of Bitcoin occurs between users directly, and is untraceable.

Bitcoin is not regulated by government or any other body, like other currencies are. However, Bitcoin is created with its own regulations built in. Nonetheless, the trade and use of Bitcoins is illegal in some countries, such as in Bolivia and Vietnam.

History of Bitcoin

Bitcoin was first introduced by its creator in a research paper published in 2008: “Bitcoin: A Peer-to-Peer Electronic Cash System.” In January of 2009, the very first Bitcoins began circling. The first Bitcoin transaction documented was between the pseudonymous creator, Satoshi Nakamoto, and California-based programmer Hal Finney, and consisted of 10 Bitcoins.

In 2012, the Bitcoin Foundation was founded by Gavin Andreson. He had previously been working on the software for Bitcoin’s clients’ use, and became the developer once Nakamoto had left the position in 2011.

The first ever purchase using Bitcoins was to order two pies of pizza from Papa John’s – and the amount paid was 10,000 Bitcoins.

In 2014, a major Japan-based Bitcoin exchange collapsed, causing investors’ Bitcoins to disappear. While this was devastating, Bitcoin recovered quickly, and by mid-2017, a single coin was worth over $2,500.

The initial release consisted of only 50 Bitcoins, and the amount circling today is upwards of 15 million.  

Bitcoin was first introduced by its creator in a research paper published in 2008: “Bitcoin: A Peer-to-Peer Electronic Cash System.” In January of 2009, the very first Bitcoins began circling. The first Bitcoin transaction documented was between the pseudonymous creator, Satoshi Nakamoto, and California-based programmer Hal Finney, and consisted of 10 Bitcoins.

In 2012, the Bitcoin Foundation was founded by Gavin Andreson. He had previously been working on the software for Bitcoin’s clients’ use, and became the developer once Nakamoto had left the position in 2011.

The first ever purchase using Bitcoins was to order two pies of pizza from Papa John’s – and the amount paid was 10,000 Bitcoins.

In 2014, a major Japan-based Bitcoin exchange collapsed, causing investors’ Bitcoins to disappear. While this was devastating, Bitcoin recovered quickly, and by mid-2017, a single coin was worth over $2,500.

The initial release consisted of only 50 Bitcoins, and the amount circling today is upwards of 15 million.  

How Bitcoin Works

Bitcoin’s success is owed mostly to those who invest in it: when people put their money on Bitcoin, its value rises, causing even more to people to invest, and so on and so forth. Unlike other markets, those who invested had no guarantee that Bitcoin would be recognized as currency, meaning Bitcoin’s only value was the belief that in the future it would be worth something. However, another major contributor to Bitcoin’s success is the merchants and companies that began to accept Bitcoin as a form of payment. When they began accepting Bitcoin, it meant that you could make a purchase online using your Bitcoin without an intermediary or transaction fee.

Once you own a bitcoin, or a portion of one, you open a Bitcoin wallet, which is a virtual wallet in which to store your virtual currency. When you complete a transaction, such as sell bitcoin to another user, the code includes your signature to prove that it in fact came from your wallet, creating security against interference.

Why Invest In Bitcoin?

There are several reasons for Bitcoin’s popularity. Among them are the following:

  • It can be converted into USD or any other currency
  • Use is anonymous and virtually untraceable
  • It has a high value with a predicted further increase
  • Use offers low transaction fees
  • It has decentralized regulation, meaning it is not operated by government
  • It seems probable that one day digital currencies will be commonly used

Bitcoin Cost

Following the collapse of Mt. Gox, the Japanese exchange company that lost investors $450 million worth of Bitcoin, Bitcoin decreased in value.

However, Bitcoin then picked up again and continued to rise from January 2016 until now.

               

Date

Value in USD

January 2014

769.08

July 2014

654.42

January 2015

313.64

July 2015

264.06

January 2016

434.22

July 2016

678.15

January 2017

972.95

July 2017

2507.89

Companies that Use Bitcoin

The number of companies accepting payment by Bitcoin is large and continues to steadily grow. Here are just a few of those companies:

And many, many more.  

How To Invest in Bitcoin

Buying Bitcoins or portions of them is easy. Just check out Bitcoin’s official website. You can also buy Bitcoins via some of the most popular online exchanges, like Changelly and Coinmama. There are a number of ways to store your coins, such as by offline wallets or on exchange sites themselves.

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