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What is Bitcoin?
Bitcoin is a peer-to-peer electronic cash system, a cryptocurrency that allows a user to conduct financial transactions with no middle men. A Bitcoin user can buy a pizza or transfer money for example with little to no transactions fees. When conducting transactions with Bitcoin there is no need to even use your name.
Who Created Bitcoin and When?
Bitcoin was created by Satoshi Nakamoto, however no one knows who Satoshi Nakamoto is. Here is what we do know. In 2008 Satoshi Nakamoto published a paper Bitcoin: A Peer-to-Peer Electronic Cash System. In 2009 Nakamoto releases the first Bitcoin software.
You can read Satoshi Nakamoto's paper here
What are the Benefits of Bitcoin?
Bitcoin transactions are anonymous. Bitcoin isn't tied to any one country. There is no third party regulator, and Bitcoin users are in control of their money with Bitcoin. You can receive and send Bitcoin anywhere in the world. Transactions can be verified at anytime by anyone using the Bitcoin blockchain. Because Bitcoin is cryptographically secure it cannot be manipulated by any government, person, or organization. The technology behind Bitcoin protects merchants from fraud.
What are the Disadvantages of Bitcoin?
There is a lack of understanding surrounding Bitcoin which has prevented it from being universally accepted. Bitcoin is still in its developmental stage, which means it still has issues to work out before reaching its full potential. There is a lot of risk and volatility associated with Bitcoin, because of the limited number of Bitcoin and the growing demand.
The Blockchain, The Technology Behind Bitcoin.
The Blockchain is an incorruptible digital ledger used to record bitcoin transactions. The Blockchain has other uses that are being explored by a host of companies. Companies are finding uses for blockchain technology in real estate, retail, music, energy, health care, public benefits, voting, charity, cloud, insurance, forecasting, banking, and supply chains to name a few. Whether you believe that Bitcoin is a legitimate currency or not, there is no denying that the Blockchain technology is the future.
Why is Bitcoin so Controversial?
The idea of Bitcoin challenges the establishment. Banks and financial institutions who have made billions of dollars off of the current financial system feel threatened by a digital payment system that excludes them. It's normal to attack when there is a threat, and Bitcoin is a threat.
It does seem that there is a lot going on with Bitcoin, but it is just the same few arguments repeated. Many people dont believe that Bitcoin has long-term value, they believe it is a scam. On the other side there are people who really believe that Bitcoin is the future of money. Usually what you'll here on the radio, television,YouTube, or podcasts are the people who think Bitcoin is a scam versus those that believe Bitcoin is the future. There is also a constant discussion about Bitcoins value. Is Bitcoin undervalued, overvalued, or fairly valued? At the time of this writing one Bitcoin is worth $5,900 That is more than one ounce of gold, so there has been a lot of debate about Bitcoins value lately.
What some people see as controversy is really just debate. It is the same debate that surrounds almost every investment.
Is Bitcoin an Asset or a Currency?
This is a very important question that still doesn't have a definitive answer. The reason why this question is so important is because assets are regulated differently than currencies. When we think of an asset like gold it is seen as a safe haven during rough economic times because it tends to hold its value, but you can't spend gold, at least in none of the places where I shop. You have to convert gold into currency in order to exercise its value. However with a currency, when you earn it and you can spend it almost every where and anywhere. The is it an asset or is it currency discussion, adds to the debate about Bitcoin.
What is Bitcoin Mining?
Bitcoin mining is where people or organizations use computers to solve complex math problems, the computer that solves the problem or puzzle is rewarded with Bitcoin from a block. There are 25 Bitcoins per block, and on average 144 blocks are mind per day. The block reward is the only way Bitcoins are created. Mining Bitcoin can be expensive when the cost of electricity is factored in.
How Do I Purchase Bitcoin? Where Can I Spend Bitcoin?
There are dozens of legitimate sites where you can purchase Bitcoins or invest in Bitcoins. It requires setting up a Bitcoin wallet, this is where you will store your Bitcoins, and synching a bank account. Once thats completed, you can exchange currency for Bitcoin and use this Bitcoin like currency or you can invest in Bitcoin like you would a stock or commodity. Keep in mind, Bitcoins are not accepted every where, so you will have problems making certain purchases with Bitcoins.