Bitcoin Basics
For someone who is not familiar with Bitcoin, the first question that comes to mind is “What is Bitcoin?”. And another common question that is often asked is related to the price of Bitcoin. It started at less than 10 cents per Bitcoin when it was introduced in early 2009. It has risen steadily ever since and has been around $4,000 per Bitcoin recently. So regarding the value of Bitcoin or the Bitcoin rate, this is a very remarkable appreciation in value and it has created many, many millionaires in the last eight years.
The Bitcoin market is global and citizens of China and Japan have been particularly active in buying it along with other Asian countries. However, recently in Bitcoin news the Chinese government has tried to suppress its activity in that country. That action lowered the value of Bitcoin for a short time, but it soon rose again and is now close to its previous value.
The Bitcoin historical chart is very interesting. Its creator was an anonymous group of brilliant mathematicians (using the pseudonym Satoski Nakamoto) who designed it in 2008 to be “virtual gold” and released the first Bitcoin software in early 2009 during the height of the US economic crisis. They knew that to have lasting value, like gold, it had to have a finite supply. So when creating it, they limited the supply to 21 million Bitcoin.
Bitcoin mining refers to the process by which a new Bitcoin is created. With conventional currency, the government decides when and where to print and distribute it. With Bitcoin, “miners” use special software to solve complex math problems, and in return they receive a certain amount of Bitcoin.
A question that then arises is whether Bitcoin is worth mining. The answer is NO for the average person. It takes very sophisticated knowledge and a powerful computer system and this combination of factors makes it unattainable for the masses. This applies even more to bitcoin mining 2017 than in previous years.
Many wonder, who accepts Bitcoin? This question is asked in various ways, what are the stores that accept bitcoin, what are the websites that accept bitcoin, what are some retailers that accept bitcoin, what are some places that accept bitcoin and where can I spend bitcoin.
More and more businesses are beginning to see the value of accepting cryptocurrency as a valid payment option. Some of the major companies that do this are DISH Network, Microsoft, Expedia, Shopify stores, Newegg, Payza, 2Pay4You and others. Two big hurdles right now are Walmart and Amazon.
Ethereum is the strongest rival to Bitcoin in the cryptocurrency market and many are wondering about the Bitcoin vs Ethereum question. Ethereum was created in mid-2015 and has gained some popularity, but it still lags far behind Bitcoin in usage, acceptance, and value.
A question that often comes up relates to the Bitcoin scam. This author has a friend who made a purchase from a company that promised 1-2% growth per day. The company website had no contact information and after a couple of months the website just disappeared one day and my friend lost all the money he had invested which was several thousand dollars.
One has to know how to buy Bitcoins, how to buy Bitcoin or how to buy Bitcoin with a credit card to get started. Coinbase is a very popular site for doing this. Its rate is 3.75% and the purchase limit is $10,000 per day. This would probably be the easiest way to buy bitcoins.
Others would like to buy Bitcoin with a debit card. Coinbase also provides this service and has clear step-by-step instructions on how to proceed with your debit or credit card.
There are those who would like to buy Bitcoin instantly. This can be done at Paxful, Inc. and can be done through W. Union or any credit/debit card.
Other common questions that arise are what is the best way to buy Bitcoins, the best way to get bitcoins, or where to buy bitcoins online. The easiest way is probably to buy it through a digital asset exchange like the Coinbase mentioned above. Opening an account with them is straightforward and once you link your bank account with them, you can buy and sell Bitcoin quite easily. It is very likely that this is also the best place to buy Bitcoins.
One must know what is a Bitcoin wallet and how to use it. It is simply the Bitcoin equivalent of a bank account. It allows you to receive Bitcoins, store them and send them to others. What it does is store a collection of Bitcoin privacy keys. It is usually encrypted with a password or otherwise protected against unauthorized access.
There are several types of digital wallets to choose from. A web wallet allows you to send, receive, and store Bitcoin through your web browser. Another type is a desktop wallet and here the wallet software is stored directly on your computer. There are also mobile wallets that are designed to be used by a mobile device.
A question that occasionally comes up is that of Bitcoin shares or how to buy Bitcoin shares. By far the most common way to proceed in this area is to buy Bitcoin outright and not its shares.
There is an entity called the Bitcoin Investment Trust, which is an investment fund designed to track the flow of the Bitcoin market. However, some analysts call this a risky way to get involved in this market.
The Bitcoin USD exchange rate is a closely watched benchmark both on a daily and long-term basis for the past 8 years since its introduction to the global financial market. A popular company that receives the most current rate on the valuation of Bitcoin is XE. They show the Bitcoin to USD valuation and also the full Bitcoin price chart, Bitcoin value chart and Bitcoin to USD chart. If you ask, “How much is a Bitcoin?” you will always know it by its continuously updated graphics.
Similar questions that arise in this area relate to bitcoin rate history, live bitcoin price chart, bitcoin to dollar exchange rate, bitcoin dollar chart, and bitcoin 5 year chart. The aforementioned website, xe, is also a good source for answers to these questions.
Regarding Bitcoin Cash, that is. To earn USD from the sale of Bitcoin, Bitwol is a company that allows you to do this. WikiHow is another company that will guide you through this process.
The projected value of Bitcoin is a topic that is often discussed. In January 2015, the price of one bitcoin was $215. Currently around $5000. This is a phenomenal increase and well beyond what most experts would have projected at the time. Currently, when reviewing expert forecasts from around the world, a common answer seems to be that the maximum value will be set at around $10,000 and one expert even projected a value that will reach $100,000.