For someone not
familiar with Bitcoin, the first question that comes to mind is, "What is
Bitcoin?" And another common question that is often asked relates to the
Bitcoin price. It started out a under 10 cents per Bitcoin upon its
introduction in early 2009. It has risen steadily since and has hovered around
$4000 per Bitcoin recently. So regarding Bitcoin value or the Bitcoin rate this
is a most remarkable appreciation of value and has created many, many
millionaires over the last eight years.
The Bitcoin market is
worldwide and the citizens of China and Japan have been particularly active in
its purchase along with other Asian countries. However, recently in Bitcoin
news the Chinese government has tried to suppress its activity in that country.
That action drove the value of Bitcoin down for a short time but it soon surged
back and is now close to its previous value.
The Bitcoin history
chart is very interesting. Its creator was an anonymous group of brilliant
mathematicians (using the pseudonym Satoski Nakamoto) who designed it in 2008
to be "virtual gold" and released the first Bitcoin software in early
2009 during the height of the USA economic crisis. They knew that to have
lasting value, it like gold had to have a finite supply. So in creating it they
capped the supply at 21 million Bitcoin.
Bitcoin mining refers
to the process by which new Bitcoin is created. With conventional currency,
government decides when and where to print and distribute it. With Bitcoin,
"miners" use special software to solve complex mathematical problems
and are issued a certain number of Bitcoin in return.
A question that then
arises is, is Bitcoin mining worth it. The answer is NO for the average person.
It takes very sophisticated knowledge and a powerful computer system and this
combination of factors makes it unattainable for the masses. This applies even
more to bitcoin mining 2017 than in past years.
Many wonder, who
accepts Bitcoin? This question gets asked in various ways, what are stores that
accept bitcoin, what are websites that accept bitcoins, what are some retailers
that accept bitcoin, what are some places that accept bitcoin and where can I
spend bitcoin.
More and more
companies are beginning to see the value of accepting cryptocurrencies as a
valid payment option. Some major companies that do are DISH network, Microsoft,
Expedia, Shopify stores, Newegg, Payza, 2Pay4You, and others.Two major holdouts
at this time are Walmart and Amazon.
Ethereum is the
strongest rival to Bitcoin in the cryptocurrency market and many wonder at the
question of Bitcoin vs Ethereum. Ethereum was created in mid-2015 and has
gained some popularity but still ranks far behind Bitcoin in usage, acceptance
and value.
A question that often
comes up often relates to Bitcoin scam. This author has a friend who made a
purchase from a company that promised 1-2% growth per day. The company website
listed no contact information and after a couple months the website simply
vanished one day and my friend lost all the money he had invested which was
several thousand dollars.
One has to know how to
buy Bitcoins, how to purchase Bitcoin or how to buy Bitcoin with credit card in
order to get started. Coinbase is a very popular site to do this. Their fee is
3.75% and the buying limit is $10,000 per day. This would probably be the
easiest way to buy bitcoins.
Others would like to
buy Bitcoin with debit card. Coinbase also provides this service and has clear
step by step instructions on how to proceed with either your debit or credit
card.
There are those who
would like to buy Bitcoin instantly. This can be done at Paxful, Inc. and can
be done through W. Union or any credit/debit card.
Other common questions
that come up are what is the best way to buy Bitcoins, the best way to get
bitcoins or where to buy bitcoins online. The easiest way is probably to
purchase it through a digital asset exchange like the previously mentioned
Coinbase. Opening an account with them is painless and once you link your bank
account with them you can buy and sell Bitcoin quite easily. This is quite
likely also the best place to buy Bitcoins.
One must know what a
Bitcoin wallet is and how to use it. It is simply the Bitcoin equivalent of a
bank account. It allows you to receive Bitcoins, store them and send them to
others. What it does is store a collection of Bitcoin privacy keys. Typically
it is encrypted with a password or otherwise protected from unauthorized
access.
There are several
types of digital wallets to choose from. A web wallet allows you to send,
receive and store Bitcoin though your web browser. Another type is a desktop
wallet and here the wallet software is stored directly on your computer. There
are also mobile wallets which are designed for use by a mobile device.
A question that
occasionally comes up is that of Bitcoin stock or how to buy Bitcoin stock. By
far the most common way to proceed in this area is to buy Bitcoin directly and
not its stock.
There is one entity
called Bitcoin Investment trust which is an investment fund that is designed to
track the market flow of Bitcoin. Some analysts however are calling this a
risky way to become involved in this marketplace.
The Bitcoin exchange
rate USD is a closely watched benchmark both on a daily basis and long term
over the last 8 years since its introduction to the world's financial
marketplace. A popular company to receive the most current rate in Bitcoin
valuation is XE. They show Bitcoin to USD valuation and also the complete
Bitcoin price chart, the Bitcoin value chart and the Bitcoin to USD chart. If
you ask, "How much is one Bitcoin?" you will always know from their
continuously updated charts.
Similar questions that
come up in this area relate to the bitcoin rate history, the bitcoin price
chart live, the bitcoin to dollar exchange rate, the bitcoin dollar chart and
the bitcoin 5 year chart. The previously mentioned website, xe, is also a good
source for answers to these questions.
Regarding Bitcoin
cash, ie. to get USD from selling Bitcoin, Bitwol is one company that enables
you to do this. WikiHow is another company that will take you through this
process.
Bitcoin projected
value is a subject often discussed. In January of 2015 the price of one bitcoin
was $215. Currently it is around $5000. This is a phenomenal increase and one
far beyond what most experts would have projected at that time. Currently in
reviewing forecasts from experts around the world a common answer seems to be
that the top value will settle in at around $10,000 and one expert even
projected a value reaching $100,000.
