What is Bitcoin?

Bitcoin is a digital form of currency also known as a cryptocurrency. It was created in 2008 and released in 2009 by an individual or group of individuals that go by the name of Satoshi Nakamoto whose identity is unknown.

Bitcoin can be transferred directly from person to person over the internet without the need for any third party like a bank. It’s a global currency which means it can be used in any country.

Bitcoin is not issued by any government and no one controls the processing of any transactions. Instead, computers all over the world use mathematical functions to independently verify all bitcoin transactions which are then added to a public, permanent list of transactions called the blockchain. The blockchain is stored on all of those computers and works as a secure universal record of who owns what. The simplest way to think of bitcoin is bitcoin is to cash or fiat money what email is to mail that you would send through a post office.

Advantages Of Bitcoin

  • Low Transaction Fees – Since no banks are needed to transfer bitcoin, the fees to transfer are significantly lower than that of a traditional banking institution.
  • Asset – One bitcoin was once valued at $20,000 in 2017 and experts believe it will exceed in value well above $100,000.
  • Inflation Proof – There will only be 21,000,000 bitcoins ever available meaning the currency itself will never inflate.

Disadvantages Of Bitcoin

  • Volatile – Bitcoin is still in it’s infancy stages therefore the value of bitcoin fluctuates dramatically.
  • Not Insured – Bitcoin is not backed by any bank or government. If you lose your credentials then your bitcoin is gone forever.

How Do I Get Bitcoin?

There are many different ways to acquire bitcoin.