Bitcoin – Fast Facts You Need to Know

What is Bitcoin and How was it Created?

Bitcoin is a digital coin which is decentralized – in other words it is not owned by any kind of central organization.

Bitcoin was invented in 2009 by the person whose nick was Satoshi Nakamoto. The real name of the one who mined the first Bitcoin is still unknown. Quite a long time has passed since the first Bitcoin appeared and a lot of people all over the world have contributed a lot to develop and distribute Bitcoin all over the world.

The process due to which Bitcoins comes into the world is called mining. It’s very much alike real gold mining but instead of spade computer power is used. Currently, there are total of 16.5 million Bitcoins, and the mining process will continue until reaching the maximum limit of 21 million Bitcoins.

Bitcoin: How to Store and to Use it?

As every other digital coins Bitcoins should be stored in a digital wallet which has its own address consisted of numbers and letters. One could open digital wallet for free and could have as many wallets as he wants.

Bitcoin transactions anonymous and secure. To confirm Bitcoin transactions Block Explorer is used. Block Explorer is a log which keeps track of all bitcoin transactions. The log is divided into blocks, each block contains of a number of log commands, and once the block is closed, the actual transaction takes place. One block requires about 10 minutes to be closed.

Nowadays Bitcoin is accepted as legal way of payment by quite a lot of business places. Such companies as Xapo and Bitpay help consumers to link their credit cards to Bitcoin wallets and in such a way Bitcoin wallet can be used as standard credit card.

In 2010 one of the early Bitcoin adopters Laszlo Henitz managed to use Bitcoin as a payment for pizza which he ordered. In those days, Bitcoin was worth nothing (cents) and that’s why  Laszlo spent 10,000 Bitcoins just to order pizza! So that was the most expensive pizza of the world.

What affects Bitcoin Price?

Bitcoin is traded on an open free market and its price is rather volatile. Of course there is direct connection between Bitcoin price and any kind of instability or crisis around the world. For example such significant big political events as Brexit, the last US elections where president Trump was elected, cancellation of the largest Rupee bills in India took great influence on Bitcoin price and made in increased significantly. Bitcoin’s value was also increased when Bitcoin was recognized as a legitimate way of payment in several countries. At the same times such factors as hacker attacks and tough crypto regulations make Bitcoin price fall down dramatically.

As a conclusion

Should one buy Bitcoin? The answer to this question always depends on one’s special target and circumstances. Anyway its always a good job before making up the decision to make a proper market research and to weigh all pros and cons.

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