Bitcoin Basics

For someone unfamiliar with Bitcoin, the first question that comes to mind is, “What is Bitcoin?” And another common question that is often asked is about the price of Bitcoin. It started at under 10 cents per Bitcoin upon introduction in early 2009. Since then, it has grown steadily and recently hovered around $4,000 per Bitcoin. As for the value of Bitcoin or the exchange rate of Bitcoin, this is a remarkable valuation and has created many, many millionaires over the last eight years.

The Bitcoin market is worldwide, and citizens of China and Japan are particularly active in buying it along with other Asian countries. However, in recent Bitcoin news, the Chinese government has attempted to crack down on its activity in that country. This action briefly reduced the value of Bitcoin, but it soon recovered and is now close to its previous value.

The history chart of Bitcoin is very interesting. Its creator was an anonymous group of brilliant mathematicians (who used the pseudonym Satoski Nakamoto) who designed it in 2008 as “virtual gold” and published the first Bitcoin software in early 2009 at the height of the US economic crisis. They knew that to have lasting value, like gold, it must have a limited supply. Therefore, when creating it, they limited the supply to 21 million Bitcoins.

Bitcoin mining refers to the process by which new Bitcoin is created. With conventional currency, the government decides when and where to print and distribute it. With Bitcoin, “miners” use special software to solve complex mathematical problems, and in return receive a certain number of Bitcoins.

The question that arises then is whether Bitcoin mining is worth it. The answer is NO for the average person. It requires 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 in 2017 than in previous years.

Many people ask, who accepts Bitcoin? This question is asked in different ways, which stores accept bitcoins, which websites accept bitcoins, which merchants accept bitcoins, which places accept bitcoins and where can I spend bitcoins.

More and more companies are starting to see the value of accepting cryptocurrencies as a valid payment option. Some of the big companies that do this are DISH network, Microsoft, Expedia, Shopify stores, Newegg, Payza, 2Pay4You and others. The two main dropouts at this point are Walmart and Amazon.

Ethereum is the strongest rival to Bitcoin in the cryptocurrency market and many are wondering about Bitcoin vs Ethereum. Ethereum was created in mid-2015 and has gained some popularity, but it is still far behind Bitcoin in usage, acceptance and value.

A frequently asked question is about Bitcoin fraud. This author has a friend who bought from a company that promised 1-2% growth per day. There was no contact information listed on the company’s website and after a few months the website just disappeared one day and my friend lost all the money he had invested which was several thousand dollars.

You need to know how to buy Bitcoins, how to buy Bitcoin or how to buy Bitcoin with a credit card to get started. Coinbase is a very popular place to do this. Their fee is 3.75% and their purchase limit is $10,000 per day. This would probably be the easiest way to buy bitcoins.

Others would like to buy Bitcoin with a debit card. Coinbase also provides this service and has clear step-by-step instructions on how to proceed with a debit or credit card.

There are those who would like to buy Bitcoin immediately. This can be done at Paxful, Inc. and can be done via 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. Probably the easiest way to buy it is through a digital asset exchange like the aforementioned Coinbase. Opening an account with them is painless and once you link your bank account with them, you can buy and sell Bitcoin very easily. This is probably also the best place to buy Bitcoin.

You need to know what a Bitcoin wallet is and how to use it. It’s 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. It is usually encrypted with a password or otherwise protected from unauthorized access.

There are several types of digital wallets to choose from. The web wallet allows you to send, receive and store Bitcoins through your web browser. The second type is a desktop wallet and here the wallet software is stored directly on your computer. There are also mobile wallets that are designed to be used via a mobile device.

A question that comes up from time to time is about Bitcoin stocks or how to buy Bitcoin stocks. By far the most common way to proceed in this area is to directly buy Bitcoin, not its shares.

There is one entity called a Bitcoin Investment trust which is an investment fund that is designed to follow the market flow of Bitcoin. However, some analysts call this a risky way to get involved in this market.

The Bitcoin USD exchange rate has been a closely watched benchmark both on a daily basis and in the long term over the past 8 years since its introduction to the global financial market. A popular company that receives the latest rate in Bitcoin valuation is XE. They show Bitcoin to USD valuation as well as complete Bitcoin price chart, Bitcoin value chart and Bitcoin to USD chart. If you ask, “How much is one Bitcoin?” you’ll always know from their constantly updated charts.

Similar questions that appear in this area are bitcoin exchange rate history, live bitcoin price chart, bitcoin to dollar exchange rate, bitcoin dollar chart and bitcoin five year chart. The website xe previously mentioned is also a good source of answers to these questions.

As for Bitcoin cash, i.e. getting USD from selling Bitcoin, Bitwol is one company that allows you to do that. WikiHow is another company that will walk you through this process.

The predicted value of Bitcoin is a topic that is often discussed. In January 2015, the price of one bitcoin was $215. Right now it’s around $5,000. This is a phenomenal increase and far greater than what most experts would have projected at the time. Currently looking at predictions from experts around the world, the common answer seems to be that the highest value will be around $10,000, with one expert even predicting a value of $100,000.