7 Things You Should Know About Bitcoin

7 Things You Should Know About Bitcoin

Bitcoins are all the craze right now with lots of online money ventures offering an additional income through Bitcoin, this virtual currency is said to rise in value even more as the years pass. However even with all the hype some people still find it hard to understand what Bitcoin really means and how to use this type of currency.

Understanding this concept though is important if you’re planning on starting your own Bitcoin wallet. The plus side of this currency is the fact that it isn’t tied to just a single nation, there’s no transaction fees and it’s easily exchangeable. Here’s what you need to know.

This Currency is Created, Traded and Controlled by People

To make it easy to understand Bitcoins are a mathematical-algorithmic construction, meaning it’s an invented quantifying value.  But unlike normal currency Bitcoins decentralise. The first Bitcoin was invented through Satoshi Pseudonym Nakamoto, however the currency is traded, created and handled by the users. Another factor is that Bitcoins are digital, you won’t ever see or touch a Bitcoin and the only way that would be possible is if you buy a (physical) facsimile.

The Bitcoin Bubble

Bitcoins are really gaining in popularity right now, simply because the value can rise and fall whenever. The value solely depends on how much people are willing to pay for it. You might have purchased it for a lesser value, but you could probably sell it for double and even triple of what you bought it for. Bitcoins popularity tends to grow when governments become unstable and this was witnessed in Cyprus recently.

The Bitcoin Gold Rush

If you don’t want to invest your own money into Bitcoin, then you can get to work on your computer and begin to crunch down on the network. It works by awarding certain batches of Bitcoins to miners and this can be collected through your PC.

Bitcoins aren’t accepted by big Retailers

Even though Bitcoin is quite popular, most major companies/retailers don’t accept this currency as yet. That being said though it has been reported that more merchants are starting to allow it, because of its rapid growth. The main share of Bitcoins however still happens online and you can use this money on sites like WordPress, Reddit and WikiLeaks.

This Currency isn’t Insured, Protected or Governed by anyone

Any transaction between these currencies is irreversible. Once you’ve made a Bitcoin transaction it cannot be undone. Keep in mind that if anyone happens to hack into your Bitcoin wallet, that person has the power to transfer all that money to another Bitcoin wallet. Be sure to have a third party that protects your wallet by theft or some kind of return policy.

The Inventor of Bitcoin remains a Mystery

Even though the cryptography was formed under the name of Satoshi Nakamoto the actual identity is yet unknown. Shortly after creating this digital currency he disappeared but reporters are still on the hunt to figure out who he is.

Bitcoins aren’t the first Digital/Virtual Currency

Bitcoins are the most sought after digital currency right now but it isn’t the first to be created. Prior to this there was Beenz, e-gold and Facebook (credit) and even though most of them have failed, plenty of people are still developing more virtual money.

Even though Bitcoin has experienced some setbacks in the recent past, it is temporary and the cryptocurrency has got a great potential ahead of it. Therefore, you can still think about investing your money on Bitcoin. The information shared above will help you with that.