ย
Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men โ meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.
ย
Why bitcoin?
ย
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that theyโll go up in value.
ย
Buying bitcoins
ย
Buy on an ExchangeMany marketplaces called โbitcoin exchangesโ allow people to buy or sell bitcoins using different currencies. Coinbase is a leading exchange, along with Bitstamp and Bitfinex. But security can be a concern: bitcoins worth tens of millions of dollars were stolen from Bitfinex when it was hacked in 2016.
๐๐ง๐๐ฃ๐จ๐๐๐ง๐จ
People can send bitcoins to each other using mobile apps or their computers. Itโs similar to sending cash digitally.ย
๐๐๐ฃ๐๐ฃ๐
People compete to โmineโ bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 12.5 bitcoins roughly every 10 minutes.ย
ย
Bitcoin wallet
Bitcoins are stored in a โdigital wallet,โ which exists either in the cloud or on a userโs computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.
ย
๐๐๐ก๐ก๐๐ฉ ๐๐ฃ ๐๐ก๐ค๐ช๐: ๐๐๐ง๐ซ๐๐ง๐จ ๐๐๐ซ๐ ๐๐๐๐ฃ ๐๐๐๐ ๐๐. ๐พ๐ค๐ข๐ฅ๐๐ฃ๐๐๐จ ๐๐๐ซ๐ ๐๐ก๐๐ ๐ฌ๐๐ฉ๐ ๐๐ก๐๐๐ฃ๐ฉ๐จโ ๐๐๐ฉ๐๐ค๐๐ฃ๐จ. ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ๐๐๐ก๐ก๐๐ฉ ๐ค๐ฃ ๐๐ค๐ข๐ฅ๐ช๐ฉ๐๐ง: ๐๐ค๐ช ๐๐๐ฃ ๐๐๐๐๐๐๐ฃ๐ฉ๐๐ก๐ก๐ฎ ๐๐๐ก๐๐ฉ๐ ๐ฉ๐๐๐ข. ๐๐๐ง๐ช๐จ๐๐จ ๐๐ค๐ช๐ก๐ ๐๐๐จ๐ฉ๐ง๐ค๐ฎ ๐ฉ๐๐๐ข.
ย
The anonymity of bitcoin
ย Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed โ only their wallet IDs. While that keeps bitcoin usersโ transactions private, it also lets them buy or sell anything without easily tracing it back to them. Thatโs why it has become the currency of choice for people online buying drugs or other illicit activities.ย
ย
Bitcoinโs future in question
ย No one knows what will become of bitcoin. It is mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations. Governments are concerned about taxation and their lack of control over the currency.ย
