A few years ago, Bitcoin flared up across the internet as the newest craze and it’s still going strong, with an increasing number of people investing in the virtual currency every day. In this short article, we aim to clue you in on Bitcoin; what it is, how you can invest, and what it’s used for.
Bitcoin is a digital currency; there are no physical notes or coins, no bank, and no controlling government for Bitcoin. Bitcoin, which is a cryptocurrency, is produced by supercomputers using a system called “mining”.
When Bitcoin was first introduced, it became an alternative to investing in typical stocks and shares. It still isn’t widely used as a payment system, though some companies, like Microsoft, do have programs that you can buy using Bitcoin. Bitcoin is also used to make cheap, international transfers.
To invest in Bitcoin, you’ll need to buy it using your standard currency. There are various ways to buy Bitcoin, but the most popular way is by buying it online using a type of crypto-bank like Coinbase. Crypto-banks and Bitcoin wallets can seem really overwhelming at first, but they aren’t overly complicated, and you should get the hang of the system rather quickly. We would suggest researching into Bitcoin and other cryptocurrencies before you decide to invest, and really thinking about whether or not investing is right for you.
Buying a Bitcoin is actually a rather expensive investment – running a few hundred pounds for a whole Bitcoin, rather than buying a partial Bitcoin. Bitcoins are very different to other currencies you’ll be used to, so they don’t have the same kind of rules. Each Bitcoin can be divided down to it’s 8th decimal place. A unit of Bitcoin can be as low as 0.00000001 Bitcoins. You can buy any amount of Bitcoin to invest in Bitcoin.
Once you buy Bitcoin, you cannot, currently, convert Bitcoin back into usable, physical money. Bitcoin is strictly a digital currency. At present, it has little use beyond investing in more Bitcoin or sending Bitcoin to other individuals.
Bitcoin experts are positive that Bitcoin is the way forward for currency and investments. The popularity of the cryptocurrency has had the public intrigued for years now, but there hasn’t been much development in Bitcoin since it’s conception in 2009. 8 years later, and we’re still unsure whether Bitcoin is the way of the future and part of a modern, technological investment, or it’s another failure waiting to happen.
Technically, any task that can be completed on a computer can be build using a cryptocurrency system. If Bitcoin continues to develop, we could see a future where purchases are made using Bitcoin and other cryptocurrencies, rather than the typical currency we use today. But as of yet, it’s still risky to invest, considering the slow development and the lack of products available for purchase using Bitcoin.
The future of Bitcoin and cryptocurrency is definitely uncertain, but with this information, you’re at least a step closer to understanding Bitcoin.