What is Bitcoin?
The controversial digital currency Bitcoin has soared in value and is now worth more than a nugget of gold.
As it stands on November 23rd, a single Bitcoin is valued at £6,145 while a troy ounce of gold is worth £973. Here's the lowdown.
Bitcoin is a virtual currency that was created in 2009 by a mysterious Japanese man/men using the alias Satoshi Nakamoto.
Individual Bitcoins are created by computer code, with a maximum number than can exist of just under 21 million so no more can be made or printed like traditional money can which courses problems like inflation and deflation.
There are currently around 16 million in circulation.
Transactions are made without middle men, so there are no transaction fees and no need to give your real name.
More businesses are beginning to accept them and in some parts of the world you can even buy pizza with Bitcoins. Amazon are rumoured to likely be excepting payment by Bitcoin. When this happens the value will shoot at a higher rate than it ever has in it's history.
You can set up a virtual wallet websites like Coinbase to store, keep track and spend your digital money.
You are also able to purchase Bitcoin through an online exchange or Bitcoin ATM.
Once you have bought your Bitcoin you then have the option have a dealer like USI-Tech deal it for you in packages which makes you around 1% per day of your investment. This ontop of compounding by buying more packages using your returns means that a €1000 investment left to compound over a 1 year period would mean your original €1000 investment would be €5750.
Bitcoins aren’t printed, like pounds, dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world.
It’s the first example of a growing category of money known as cryptocurrency.
Bitcoin is attractive to some users because of its anonymity, as well as its lack of government control.
The website Silk Road was closed in 2013 following raids by the FBI and other agencies amid allegations of drug dealing with authorities seizing millions of dollars worth of Bitcoin during the raids.
Some quotes by famous people
Co-founder of Microsoft, investor and philanthropist
“Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.” [Source: Bloomberg]
“Bitcoin is a technological tour de force.”
Founder of Virgin Galactic, and 400+ businesses
“Well, I think it is working. There may be other currencies like it that may be even better. But in the meantime, there’s a big industry around Bitcoin. — People have made fortunes off Bitcoin, some have lost money. It is volatile, but people make money off of volatility too.” [Source: Bitcoin.com]
“Virgin Galactic is a bold entrepreneurial technology. It’s driving a revolution. And bitcoin is doing just the same when it comes to inventing a new currency.” [Source: CNBC]
Former Vice President of the United States
“When bitcoin currency is converted from currency into cash, that interface has to remain under some regulatory safeguards. I think the fact that within the bitcoin universe an algorithm replaces the function of the goverment …[that] is actually pretty cool.”
Executive Chairman of Google
“[Bitcoin] is a remarkable cryptographic achievement… The ability to create something which is not duplicable in the digital world has enormous value…Lot’s of people will build businesses on top of that.” [Source: Newsbtc.com]
Founder of the software and anti-virus company McAfee Associates
“In the long term Bitcoin moves above $500,000 within three years. Bets?”McAfee tweeted on 17 July 2017. In his reply he added that if it doesn’t: “I will eat my d*ck on national television.” [Source: RT.com]
“It is not a speculative investment even though it is being used as such by other people. As Bitcoin network grows the value of Bitcoin grows. As people move into Bitcoin for payments and receipts they stop using US Dollars, Euros and Chinese Yuan which in the long-term devalues these currencies.”
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