Bitcoin’s price has risen to over $16,500 per coin, up from $500 per coin only a year ago, with a market capitalization of more than $270 billion (about $830 per person in the US). Bitcoin’s rise has attracted dozens of new investors from all over the world. What is remarkable though is how few people really understand Bitcoin.
Let us understand the basics of bitcoin first.
First thing first, get a Bitcoin wallet. Various online applications make it easy to build a wallet. Your Bitcoin wallet functions similarly to every other wallet.
The term ‘blockchain’ refers to this digital transaction log.
1. So, what is Bitcoin, exactly?
Bitcoin is a digital currency that operates blockchain technology also called a virtual currency. Bitcoin is not something you can print, touch, or feel and it is not something you can keep in your safe or wallet. Bitcoin is a virtual currency. They are in a set of digits (0s and 1s) stored on a network of computers all over the world.
2. What are the uses of Bitcoin?
Many tech-savvy online merchants already accept Bitcoins. You can order Web hosting, merchandise, and even a cup of coffee. Select online shopping allows transactions using Bitcoins. If they accept Bitcoins, they will display a cryptocurrency icon like Bitcoin, Litecoin, or Dogecoin.
3. What makes people buy Bitcoins?
Bitcoin is a brand-new type of money. Some assume that the value of Bitcoins will rise over time as more people and companies adopt the technology.
4. What is the best place to buy Bitcoins?
A list of some of the most famous cryptocurrency exchanges is provided below.
5. Where do I keep my Bitcoins?
Bitcoins are held in a “digital wallet” which is an online account like a bank account. Digital wallets are used to buy and sell Bitcoins, as well as move Bitcoins from one account (address) to another as a form of payment or transaction.
Assume you want to purchase a $1,300 sofa from Overstock, and the latest Bitcoin price is $13,000. For the object, you will give 0.10 Bitcoin to Overstock. The transaction does not include a bank or credit card.
New Bitcoins must first be mined, and miners receive some Bitcoins, which can then be sold to others. Some people are dissatisfied with the existing financial institutions and banks. Hence, they choose to pay in Bitcoins.
Bitcoins are becoming more common, even though they were mostly used by speculators looking for a way to profit by purchasing Bitcoins at lower prices and selling them at higher prices. Businesses are increasingly using and accepting and transacting on Bitcoin as a mode of payment.