The World of Bitcoins: 5 Things You Need to Know
July 30, 2019 (Investorideas.com Newswire) The cryptocurrency which became the hype during the early part of 2009, the Bitcoin was suddenly gathering attention from people belonging to all walks of life across the planet. A lot was going around this new phenomenon which had quickly emerged and was taking everyone by a storm. Significant users of Bitcoin were the black markets, and one amongst them was the Silk Road, which was without a doubt part of the dark web. All of this made bitcoin a very excitable technology, especially for the youth and those who sought to become quickly famous. It is why, in this post, we would like to share with you five things that you need to know before you make your decision about investing in this electronic currency.
Bitcoin is Treated Differently by Every Country
The very fact that bitcoin is not under the direct regulation of any country is precisely why national governments have opted for their personalized way to treat the cryptocurrency. Hence the laws regarding bitcoin change from one location to another. While some recognize it as a legal currency other might even go as far as discouraging people from using it within their borders. A clear example here could be of Lebanon and Jordan where they officially state the bitcoin is not supported at all, whereas, in Australia and Japan, Bitcoin is like any other currency. Hence when the question arises who accepts bitcoin? The answer can vary a lot from one place to another.
Where Do I Get Bitcoin?
You can either buy bitcoins or mine them. For purchasing Bitcoin, you need to visit a bitcoin exchange online that is recognized and not a hoax. You can even link your bitcoin account with that of your bank account for further conveniences. On the other hand, if you want to mine bitcoins, then you require specialized computing tools that can assist you in confirming transactions based on a bitcoin peer-to-peer network. There is a fixed formula for newly created bitcoins, and the rewards get lower with each miner. Some people proclaim that the supply of bitcoins is limited to 21 million units only. Although these are merely speculations, to this day, around 16 million bitcoins have been mined so far. As of today, one bitcoin amounts to $9,517.15 in the United States.
Bitcoin backed by nothing?!
Originally all national currencies came into existence with support from the gold withheld by the state's central bank. These notes served as a promise of value based on the amount of gold which was present inside the safe vaults of the nation's central regulatory bank. Over the years, the value of the currency has dwindled to about 95% of its original value. All of this occurred within 100 years. Bitcoin is still in its infancy. However, it has a lot of support from many new and emerging players in the market. So far, it has displayed exponential sustainability over the years. Nevertheless, the question still arises; Bitcoin is only as valuable as the people perceive it to be. Isn't that the very case with every commodity on this planet we live?
Who Founded Bitcoin?
Satoshi Nakamoto founded Bitcoin as many would attribute the person's actions as the leading cause of bitcoin reaching the public for the first time. However, to this day, Nakamoto's identity remains unknown. Many blockchain analysts proclaim that by 2010 Nakamoto mined around 1 million bitcoins before disappearing entirely from the radar. However, before this act, Nakamoto handed the network alert key and the control of the code to Gavin Andersen.
Best Time to Buy?
Bitcoin operates as any money market does. The prices can go up and down at any time. Hence nothing is for sure. However, history shows that this particular cryptocurrency has increased in value at an alarming pace and then followed by a slow and steady downfall.
That is it for our list of the five things that you should know about this unusual currency. For more questions and queries regarding the topic, please feel free to share with us your views in the comment section below.
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