Bitcoin was introduced in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men, no banks! Bitcoin started gaining relevance when it could be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But the hype that drove it higher was about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.
The beauty of bitcoin is that it can be used to buy merchandise anonymously. This helped alot in international payments because it is easy and cheap and are not tied to any country or subject to regulation. Small businesses appreciate them because there are no credit card fees. Some people basically just buy bitcoins as an investment, hoping that they’ll go up in value.
HOW TO BUY BITCOIN
Buy on an Exchange
Many marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. In Nigeria we are the leading platform for exchange of all kinds of cryptocurrencies. Follow this link and have a quick chat with us bit.ly/PWhatsAppChat
People compete to “mine” bitcoins using computers to solve complex mathematics puzzles. This is how bitcoins are created and ‘mined’. Currently, a winner is rewarded with 12.5 bitcoins roughly every 10 minutes.
Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s 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.
Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.
In conclusion, no one knows what will become of bitcoin with the rate it is going. 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.