Learning the basics of Bitcoin

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“What is Bitcoin?” To the uninitiated, Bitcoin is a type of cryptocurrency that started out in early 2009. Back then one Bitcoin was worth only 10 cents but its value has risen steadily since and has hovered around $6,000-7,000 as of press time. Bitcoin’s remarkable appreciation of value has created a lot of millionaires over the past eight years.

The Bitcoin market has gone worldwide and people from China, Korea and Japan and other Asian countries are quite active in buying Bitcoins recently. Bitcoin’s value may have wavered a bit in the past few weeks but it has come out strong again and is now close to its previous value as of today.

Bitcoin’s history is quite interesting and impressive as well. It was created by an anonymous group of mathematicians who used the pseudonym Satoshi Nakamoto. Bitcoin was originally designed to be “virtual gold” and the first Bitcoin software was released in 2009 at the height of the US economic crisis. The people behind Bitcoin knew that for it to have long lasting value, it had to have a finite supply like gold. So, when they created it, they capped its supply at exactly 21 million coins.

BITCOIN MINING, WHAT IS IT?

Now, you’ve probably heard about “Bitcoin mining” and a lot of people are talking about it but what is it really? Basically “mining” for any digital currency refers to the process by which new coins are created. With traditional currency (physical money), our government usually decides when and where to print and distribute it. However, with digital currencies like Bitcoin, “miners” utilize a special type of software to solve complicated mathematical problems and are then rewarded a certain amount of Bitcoin in return.

Seeing the effort needed to successfully mine coins, you might be asking if Bitcoin mining is worth it. For the average person, the answer is a definite NO. Why? Because you would need a higher-than-average knowledge, a powerful computer system and a lot of other factors to pull it off. If Bitcoin mining was complicated then, what more now, right?

WHO USES AND ACCEPTS BITCOIN?

 Nowadays, more and more companies are beginning to see how profitable accepting cryptocurrencies as a valid payment option is. Among the major companies that accept cryptocurrencies such as Bitcoin are Microsoft, DISH Network, Shopify tores, Payza, Newegg, 2Pay4You, Expedia, Overstock, Paypal and much more. Amazon and Walmart are currently holding out on this service, as they are still doubtful of it. It will not take long until these companies eventually realize that Bitcoin is going to pave the way for a cashless society in the future.

A lot of people have already made and continue to make HUGE amounts of money with Bitcoin. Don’t wait until it’s too late to join! One of the best ways for you to find out all you need about Bitcoin and cryptocurrency investment is to check out our updates here at Cryptoclub! Check out our FB page for our daily updates on the crypto market too!

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