In this new article series, we will be talking about each of the most popular cryptocurrencies in the market; when and how it started, why it’s so popular and other information you might need to start investing. Today, we discuss Bitcoin.
Bitcoin has got to be the most well-known cryptocurrency today. So much so that people oftentimes use the terms Bitcoin and cryptocurrency interchangeably! So what is it about this cryptocurrency that makes it so popular?
What is Bitcoin?
Bitcoin is the world’s first ever decentralized digital currency. Bitcoin was created to basically allow electronic payments to be sent to one party to another party without having a financial institution acting as a middle man or intermediary for the transaction. These transactions are all recorded in a public, digital ledger called a blockchain.
There are only 21 million Bitcoins in the world and only around 16 million are in circulation. So you can attain Bitcoin by either buying ones that are already in circulation or mine for your own. We’ll talk about mining in a separate article.
The Beginning of Bitcoin
On January 8, 2009, the creator, under the pseudonym “Satoshi Nakamoto” released the first version of Bitcoin as seen <a href=”http://www.metzdowd.com/pipermail/cryptography/2009-January/014994.html”>here. </a>
The real identity of the creator of Bitcoin is still a mystery. For all we know, it could be a single person or an entire team! These days, Satoshi Nakamoto has been inactive with the Bitcoins in his wallet left unspent and untouched.
One of the reasons why Bitcoin is so valuable is because of its uses. You can either treat your Bitcoin as an investment or use it to purchase goods.
Bitcoins are mostly treated as a commodity or an investment nowadays due to its increasing value. People buy and sell them as they would with stocks in the stock market.
Many of the early Bitcoin investors have made millions of dollars by keeping the Bitcoin they have instead of spending them. In the same way, many have lost potential gains by spending their Bitcoins when it wasn’t of such high value yet. In one instance back in 2010, a developer had spent 10,000 BTC on two pizzas—an amount that would be worth $100 million today!
Purchase of Goods
Though this use of Bitcoin is not as popular as it was before, many merchants have started accepting Bitcoin as a mode of payment. Since Bitcoin is not owned by a certain country, you can use your Bitcoins to purchase anything from anywhere in the world.
You can purchase products ranging from small food items to luxury cars. You can avail moving services, car rentals, airplane tickets and so much more!
Here is a list of merchants who accept Bitcoin as payment for their products and services.
Current Bitcoin Value
As of this writing, Bitcoin is now at Php 605,119.44!
Figure 1Bitcoin Price Chart from Bitcoin.com
Bitcoin has grown so much from its first run in 2009. It has truly made its mark in history as it revolutionized the financial realm taking the world by storm. More companies and even entire countries are getting into the cryptocurrency craze and it’s all thanks to the mysterious innovator, Satoshi Nakamoto.
If you want to get down with the details and research even more about Bitcoin, you can read the white paper here. You can also get updates on this digital currency and other Bitcoin news at our facebook page at facebook.com/cryptoclubph