In recent news, you may have noticed the subject popularity on Bitcoin. The following questions may come up,
We will help you get a clear picture of the internet currency without getting into the nitty gritty details that may confuse most people.
Firstly, Bitcoin is an internet currency or better known as, a cryptocurrency. It offers a way to make transactions without the common use of the U.S dollar. A fair comparison would be to having your wallet full of cash and harddrive full of bitcoin. In both scenarios, you possess a currency worth some value. Right now, one bitcoin is worth 16,207 dollars. Other companies exist that offer cryptocurrencies, a few of them being : Ethereum, LiteCoin, Neo, Monero.
Unfortunately, Bitcoin isn’t offered as an hourly wage nor can you earn it through a typical job. There are two ways it is possible to acquire Bitcoin:
The first option is rather simple. You trade 1 Bitcoin for 16,207 dollars. In 2009, you were able to purchase 5,000 bitcoins for as low as 27$.
The second option is where the Bitcoin story gets complicated. For simplistic reasons, we will keep the explanation concise and to the point. You may have heard of the term ‘mining’ related to the technology field. When pertaining to Bitcoin or a cryptocurrency, the term mining isn’t what we might initially imagine. Instead of digging into the Earth’s crust in hopes to find some Bitcoin, we dig deep into CPU utilization. Powerful computers solve Bitcoin designed ‘problems’ or ‘equations’. As a reward, Bitcoin assigns a bitcoin to the host who solved the equation. The entire process has a snowball effect. The more value a Bitcoin gains the harder the equations are to solve.
The hype begins around the fact that the new currency is completely unregulated by government agencies. While it is bannable by governments, it is not regulated. A major component of Bitcoin popularity is also the delicacy of Cryptocurrency and its worth. It’s like taking a gamble. Dedicating time, money, and effort to gain Cryptocurrency can profit in thousands to millions of dollars while in some cases, very little to none.
In most recent news, Bitcoin proved to be a very profitable business as its value skyrocketed in just a few months.
Unfortunately for the common consumer, investing in Bitcoin is not so realistic anymore because of its value. As previously stated, today, one Bitcoin is worth 16,207 dollars. So, to invest in Bitcoin at its current value is rather pricey. If you are just learning about the hype-train, it is unfortunately a little late to hop on. This doesn’t mean that you can’t explore other cryptocurrencies. Other companies still compete with Bitcoin and have proven their potential of exponential growth in the following years.
While the Cryptocurrency world is still very unpredictable, it is important to consider its expansion and potential. Keep an eye out and enjoy the evolution of Cryptocurrency unfold!