As Bitcoin reaches the dizzying all-time heights of over $20,000 at the end of the year 2020, it seems to be one of the most talked-about investments. While it’s not widely accepted as mainstream currency at this point, the buzz around this cryptocurrency is still increasing rapidly.
Besides the ever-changing value of a Bitcoin, what else is there to know about it and how it can help us towards a greener future?
It may seem a complicated concept, but you only need to know a couple of things to get started with these investments.
Here are some of them to get you started.
What are Bitcoins, and where did they come from?
Bitcoin is an innovative payment method that was created in Japan 12 years ago in 2009, by an anonymous person under the alias of Satoshi Nakamoto.
Bitcoin is not money that can be physically held in your hands–it is a digital cryptocurrency that can be used to purchase goods and services online.
This paperless payment and investment method were created to allow people to buy merchandise anonymously while adding to the efforts of creating a more sustainable world.
The digital currency system means that transactions can be completed without anybody knowing who the payment was sent from or where it went.
Additionally, Bitcoin allows international payments to be made cheaply and easily since they are not tied to any currency or country with any regulation. Small businesses may favor them as bitcoin means that there are no credit card fees to cut into profits.
Many people bought Bitcoins back in 2009 as an investment hoping that they’d increase in value over time.
Where can I get Bitcoins?
You can acquire bitcoins by providing goods and services to Bitcoin users, trading paper currency for Bitcoins, or Bitcoin ‘mining’.
Various websites will sell Bitcoin to investors that offer secure accounts that protect your assets from being accessed by scammers and hackers.
They are kept securely in a digital wallet on your computer or through a website that will manage your Bitcoin account for you. There is no limit on the number of Bitcoin wallets any person can have. You can get specific software to prevent the tracking of IP addresses.
What is Bitcoin ‘Mining’?
Bitcoins become minted when they go through the ‘Bitcoin Miner’ that attempts to find a new block in the Bitcoin chain network. Mining involves offering your computer to Bitcoin, and once a new block is found through working through various complicated puzzles and mathematical equations, the owner of the computer will receive 50 Bitcoins.
Where can I spend Bitcoin?
As its popularity grows, more and more businesses are beginning to accept Bitcoin as payment.
Due to their anonymous nature without having to go through banks, many people will favor Bitcoin where they have the opportunity to spend it. Physical businesses should display signs indicating the acceptance of payment in Bitcoin, while websites and online retailers should list it as acceptable at their point of sale.