What you should know about Bitcoin

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Bitcoin is a Cryptocurrency that’s all around the news as of late. First established in 2009, the main idea behind it was to invent a decentralized digital currency that exists independently from a central bank or administrator.

Nowadays, most, if not all of the modernized urban areas allow you to exchange the virtual currency and withdraw cash from a specialized ATM machine (in the form of currency the state uses).

Depending on the country you live in, your Bitcoin wealth will remain on-taxed. If you have a strong modern desktop PC, it’s also feasible to mine for Bitcoins, although anyone is welcome to do it.

These, plus its relative anonymity, are the main reasons why Bitcoin is such an attractive concept.

Blockchain technology – what are the benefits how does it work?

The blockchain technology is a code that runs on a peer-to-peer network. Any transaction that takes place between its users is protected by cryptography, and no intermediary is necessary in order to complete a transaction.

By using block chain technology, we can make sure that everyone receives what is owed to them without having to trust a stranger to fulfill his or her part of the deal and without having to enforce a contract, which isn’t worth it in terms of legal fees if the contract covers a smaller amount of money agreed on.

The sudden explosion of Bitcoin’s value

In a brief period of time, Bitcoin jumped from $100 to $2000 in value (and it keeps on growing). Nowadays, it’s worth roughly $14K, even though it was worth $20K for a brief period of time.

From 2015 to 2017, a single Bitcoin exceeded $2K in value, and from 2017 and beyond, the value absolutely skyrocketed.

It may be hard to imagine that Bitcoin was only worth a single dollar in 2010 (actually it was even a bit less). The currency has had its ups and downs ever since, but for the most part, it has gone up in value.

Where can you buy Bitcoin?

Before thinking about buying Bitcoin, you’re going to need a digital cryptocurrency wallet. Without getting too technical, there are two types of wallets:

a) Self-hosted ones

b) Locally-hosted ones.

Both have their pros and cons, and there are a myriad of providers for you to choose from.

Generally speaking, most of the people (especially those who are just starting out with cryptocurrencies) are best off choosing the one that’s the least technically demanding to use.

A lot of people like Coinbase. It’s user-friendly and you can attach your credit or debit card to it and buy Bitcoin directly from its interface.

What does the future of Bitcoin have in store for us?

This is a tough question to answer, and in the world of cryptocurrencies, nothing is for certain. But looking at how much Bitcoin has managed to grow in the current year, it’s likely the trend is going to continue. As long as you keep in mind that the bubble can burst at any second and treat your investment as a calculated risk, you can’t go too wrong, especially if you only invest what you can afford to lose. You can learn more about Cryptocurrencies from thecryptosite.