You must have heard the name a lot in the news recently and might be asking yourself what is Bitcoin? Bitcoin isn’t new –it has been operational since 2009 – but it is now getting more coverage than ever before. Now, before we tell you what bitcoin is we must explain something first. What bitcoin was supposed to be and what it is right now are two different things. We are going to cover both so you have a full understanding of the topic at hand. Don’t worry – we’ll keep the explanations as simple as possible.
Bitcoin: The Currency
Bitcoin was created to be a currency. It is called a cryptocurrency, because it uses cryptography. Bitcoin is basically a currency which you can use to buy and sell things, just like any other currency. However, what makes bitcoin so special is that it is a currency unlike any other.
The biggest difference is that this currency isn’t issued by any government. All the other currencies in the world that you can use, aside from cryptocurrencies, are created by a government. There is a government institution which controls the supply of the currency. Not bitcoin – there is no government in control of bitcoin. Interestingly enough, there is no one in control of bitcoin. That’s what makes it so remarkable.
Bitcoin is instead ‘mined’ by solving an algorithm. The authenticity of bitcoin is maintained by its cryptographic nature and use of things called ‘keys’.
Bitcoin: The Money Making Machine
Ok, so bitcoin is a currency, but that’s probably not why you heard its name. Everyone is hearing about bitcoin because it is one of the best money making opportunities right now. The success of bitcoin has overtaken almost all financial news all over the world. So what is it about bitcoin that makes it such a good way to make money?
Bitcoin can be mined or it can be bought. The price of bitcoin is determined by demand for it. The more that people demand bitcoin, the higher the price goes, and so on. Bitcoin started out costing a few cents but now costs thousands of dollars. We aren’t giving you a specific number because, well, it will probably have increased much more in value in a few days.
Here’s something to think about: Bitcoin has, until now, given more than a 100,000% return! That means that if you had $1 worth of bitcoin when it began, you would have $100,000 worth of bitcoin right now. The rise has been astronomical that bitcoin is the single most profitable asset to own right now. It may just be the most profitable asset to own in human history. What else has managed to give a 100,000x return in a matter of 8 years?
So if you were wondering what bitcoin was, you have your answer. It is a currency that can be used without the need of any government’s authority. It is also a very profitable asset these days.