Bitcoin is a cryptocurrency that was created back in 2009 by an anonymous person, or group of people, using the name Satoshi Nakamoto. Transactions, which can take place in anywhere from ‘Bitcoin exchanges’ to CFD trading platforms, like Skilling, allow punters to buy and sell the cryptocurrency using varying other currencies, and with no middleman – like a bank, for example. You can also spend your Bitcoin in tons of places. Microsoft have been accepting Bitcoin on the Xbox Store since 2014, whilst more recently, coffee shop giants Starbucks have begun accepting direct payments via the cryptocurrency.
So, what are the advantages of Bitcoin?
Bitcoin is great because you can make anonymous purchases. Moreover, international payments are cheaper and more convenient, as the cryptocurrency is not owned by a specific country or tied to any regulations. In addition, no credit card fees are an attractive incentive to small business, whilst for many people Bitcoin just seems like a smart investment, as the value of the cryptocurrency is always changing.
How can you buy Bitcoin?
Nowadays, there are loads of ways you can buy Bitcoin! As we mentioned briefly already, there are a wide range of Bitcoin exchanges on offer. These are an established, quick, and safe way to purchase the cryptocurrency. Moreover, you’re able to use your credit or debit card to buy the Bitcoin. There are also P2P (or peer-to-peer) platforms, where you can buy Bitcoin straight from sellers. These are great, as, again, not only can you use your bank card, but you can also find better rates, and a fairer price.
Other ways to buy Bitcoin include, Bitcoin meet ups in your local area – where you can meet with other crypto-enthusiasts and trade safely – and Bitcoin ATM’s. Yes, that’s right, specific Bitcoin ATM’s are popping up all over the world. In fact, your local area probably has one! A quick search in your web browser will help you locate your closest Bitcoin ATM, or alternatively, there are also dedicated sites for helping you find one in your local area.
Where is your Bitcoin stored?
Simply, Bitcoins are stored in what is a called ‘digital wallet’ or ‘Bitcoin wallet’. These exist in either the cloud or on the owner’s computer or laptop. The wallet is basically a virtual bank account, which allows users to send and receive bitcoins, pay for items and save up their cryptocurrency – kind of like online banking. However, unlike a regular bank account, your Bitcoin wallet is not insured, and finding an insurer can prove difficult. There are also downsides to storing Bitcoins on the cloud or on your computer, as well. There have been instances of owner’s cloud accounts being hacked, whilst the user may also accidently delete the folder stored on their computer.
How anonymous really is bitcoin?
Ok, so have mentioned this briefly already, but Bitcoin is completely anonymous. Even though every transaction made is recorded in a public log, the names of buyers and sellers are never actually revealed – only their wallet ID.
What is the future of Bitcoin?
Experts believe that Bitcoin with reach highs of almost $20,000 by the end of this year – one Bitcoin is currently worth around $11,386 – whilst they also believe that, by 2030, one Bitcoin will be worth around $400,000.