If you’ve been paying attention to the news lately, you’ve most certainly heard of the term Bitcoin being used. This is because the price of Bitcoin has skyrocketed. It began the year worth $800 for a single Bitcoin. As of today, the price is over $15,000!
So what the heck is Bitcoin? Is Bitcoin a scam? Or is it a legitimate way to make money? In this post, I will walk you through the history of Bitcoin and answer some common questions.
I’ll also show you how you can buy and win Bitcoin if you so desire.
What Is Bitcoin?
The History of Bitcoin
Bitcoin began back in 2008 by a developer as a peer-to-peer electronic payment system. Instead of using paper currency like all nations do, Bitcoin is 100% digital currency.
The allure of Bitcoins are that they are free from central authority. In the United States, we have the Federal Reserve overseeing the money supply. With Bitcoins, you don’t have this authority. It was pre-programmed that the total number of Bitcoins will never exceed 21,000,000.
Every year, fewer and fewer Bitcoins are released to the public. By roughly 2040, no more Bitcoins will be produced.
The entire process of creating Bitcoins is very technical and I will not be going into the details in this post.
What can you do with Bitcoins? You can use them to buy things. Back when the digital currency first started, you were hard pressed to find places that accepted Bitcoin. But today, more and more places accept Bitcoin.
And of course, if you are making a deal with another person, say at a yard sale for example, you could pay for the item in Bitcoin assuming the seller is interested in accepting them.
Today, many people are simply speculating in the digital currency. They are buying up Bitcoins in the hope they can sell them in the future for more than they are worth today.
The problem though is that many of these same people are putting all of their money into Bitcoin. What they should be doing is investing in a more traditional way and investing in Bitcoin with money they can stand to lose.
The reason I say this is because Bitcoin is extremely risky to tie all your wealth into, as you will see as you read further through this post.