If you have been following the news, you probably know or have heard about this thing called bitcoin. It has been in the news for a lot of reasons. The bitcoin has been in the news for a variety of reasons. Its price is one of the main reasons. The price of bitcoin is like a roller-coaster ride. It reached the all-time high 2675 USD in May 2017 before settling down at somewhere around the 2200s. It has also grabbed a lot of media attention because of its use for money laundering, trading illegal goods and in ransomwares.
What is bitcoin?
Bitcoin is a payment system and a digital currency. It is used for transferring money from one person to another. What makes bitcoin truly unique and different from the existing systems is that it is completely decentralized and managed by a peer to peer system. In traditional currencies or payment systems, there is always a third party needed to mediate the transactions. In bitcoin, no third party is required as transactions are verified using cryptographic rules.
To make this work, bitcoin uses the blockchain technology.
Blockchain technology makes it work. It is an innovative technology invented by an anonymous person known as Satoshi Nakamoto. Bitcoin can function as a fool-proof payment system and currency because of the cryptography rules. The rules of this network were fixed in the beginning and require the consensus of everyone to make a change.
Today, thousands of merchants around the world accept bitcoins as payment. Big companies are accepting it as a currency including, Microsoft, reddit, Wikipedia, shopify and others. Currently, about three hundred thousand transactions happen on this network daily and are growing at an exponential rate. The current market cap of bitcoin is about 39 billion USD and 1.6 billion worth of bitcoins are traded daily.
How to get bitcoin
In order to own bitcoins, you’ll need a specialized bitcoin wallet. Bitcoin wallets are of many types. There are software wallets, hardware wallets and there are also online wallets where you store your bitcoins with a third party on the internet. The latter is the least secure option and I do not recommend it. For big amount, you should get a hardware wallet and for a small amount, software wallet should be sufficient.
Once you have your wallet up and running, you’ll need to buy some bitcoins. You can do this in many ways, you can purchase it from local bitcoin exchanges in your country or you can purchase it from localbitcoins.com. While dealing with bitcoins, it is also important to be wary of scammers. You can use bitcoinscamfighters in order to avoid being scammed.
Bitcoin is certainly an exciting technology and there is little doubt that it is going to change the way we buy and sell from each other. If you don’t already have them, now is a good time buy some and load them up in your wallet. Its value grows every year so you will not regret buying it.