Established in 2009, bitcoin, the first cryptocurrency, comes without a central bank. Because of this and other features, more and more people are growing interests in this cryptocurrency. According to Bill Gates, founder of Microsoft, bitcoin is an exciting investment because it’s cheap and it shows to people how cheap it is.
Bitcoin is a digital currency that is invented by an unidentified person using the alias Satoshi Nakamoto who is still considered as a mystery up until now. It doesn’t come in physical form but is made online and saved in a virtual wallet. It has no primary bank or mandated institution to support it, but you can use it as a mode of payment or for online trading. Find out more about bitcoin and blockchain news in this article.
History of Bitcoin
Bitcoin was established in 2009. Since then, its value increased enormously. From 0$ value in its first year, 1 Bitcoin is now worth almost 19,000 US dollars. Here are some facts to know about bitcoin:
- On October 31, 2008, “Bitcoin: A Peer-to-Peer Electronic Cash System” was published to a cryptography mailing list, under the name “Satoshi Nakamoto”. It stated the fundamentals of how Bitcoin would function.
- On August 18, 2008, an unidentified person registered the Bitcoin.org domain.
- On January 8th, 2009, the initial form of bitcoin publicized and bitcoin mining started.
Currently, there are many companies from different industries around the world that are accepting bitcoin as a legit mode of payment. It would be a blunder not to embrace virtual currencies as a form of payment like bitcoin.
Mining is an integral aspect of bitcoin which guarantees fairness while maintaining bitcoin’s network to be firm and protected. Miners operate with special software that will unravel math problems and will deliver certain amount of bitcoin virtually. Mining gives a clever way to produce the currency and generates earnings to more people who want to invest.
The Risk of Bitcoin
According to entrepreneur billionaire Mark Cuban, if you are an adventurer in the world of investment, you might take 10% of your savings and put it either in bitcoin or ethereum. However, you should be ready to think that you’ve already lost your money. The worth of bitcoin is extremely volatile. It changes so unpredictably that you’ll never know when it will blow up like a bubble so it is very risky.
While there are other cryptocurrencies, bitcoin is one of the most popular ones. Aside from the fact that it is the first ever cryptocurrency, it is infamous because compared to other digital currencies, it provides quicker transaction, bigger storage capacity, and more important improvements.
Is Bitcoin Secured?
William Dudley of Federal Reserved Bank of New York says that he is precautionary about bitcoin. According to the FRBNY’s president the cryptocurrency is not a stable store of value, thus making him skeptical with the speculative activity.
While it’s true that many people view bitcoin and other cryptocurrencies as a risky investment, they are safe and can give people the expected results. It’s definitely not a mistake to invest in bitcoin.