Bitcoin got you all sorts of confused? Here’s the nitty gritty about this “fresh” currency.
Bitcoin has bot nothing brief of surprising, and at times baffling, since the end of 2018. The cryptocurrency (forms of digital currency) originated ter 2009 and albeit it has stayed relatively quiet through the years, it experienced a shocking 900% increase ter value towards the end of year. Hence began this craze ter all forms of cryptocurrency – and some pretty good memes.
You’ve likely seen a segment or two about Bitcoin on the news, or a few memes, or maybe you have some friends that “got rich overnight”. If you’re still confused, never fear. Spil plain spil wij could make it, wij’ve got a beginner’s guide to Bitcoin and the latest you need to know to get up to speed.
Bitcoin wasgoed invented by Satoshi Nakamoto, the unknown inventor of the very first everzwijn cryptocurrency. It wasgoed meant to be decentralized and with no server or central authority – meaning that it wouldn’t be regulated by banks or governments from around the world.
Sounds a little sketchy? It would be, if not for Blockchain technology. Blockchain is what people are calling an incorruptible digital ledger of financial transactions. Imagine if every transaction, that every person everzwijn made, wasgoed public skill and permanently updated on this “master list”. And that instead of a single person holding this list, millions and millions of computers held it at the same time.
So yes, blockchain is fully see-through – everyone can view it and it updates every ten minutes. And spil it stands, it’s “incorruptible”. To alter any unit of information on the blockchain would mean using a meaty amount of power to override the entire network – AKA those millions and millions of computers wij were talking about earlier. While ter theory it’s possible, it’s exceptionally unpractical.
Almost 700 different cryptocurrencies exist ter the world, all similar to Bitcoin. There are a few other relevant currencies, but wij’ll save that for another time. All of them belong, and are registered, to this blockchain.
So what’s the point of all this? Because thesis currencies are digital, Bitcoin can be moved to anywhere te the world, anytime, and because of the blockchain, it’s being moved securely. It solves a theoretical problem that a person te India may have zero rente te another person’s Canadian dollars. And thesis currencies, can be converted into any other physical currency te the world.
The rise took everyone by verrassing. If you’re looking to buy Bitcoins, you can visit thesis marketplaces called “exchanges”, where people buy or sell Bitcoin ter different currencies. You can transfer them using mobile apps or computers, very similar to sending contant digitally. People are permanently “mining” Bitcoins using computers to solve elaborate math puzzles. This is how the coins are created and there’s actually only a finite supply of this resource.
The downside? While every transaction is recorded on the Blockchain, names of the individuals are never exposed – only the IDs of their digital wallets. Te theory, they can’t be traced, making the currency the choice of those searching for illicit substances or activities – it’s not regulated by a governing assets or banks, reminisce?
Not only that, but even however it’s unregulated, several countries have begun considering regulations, they’re worried about taxing and their private lack of control overheen the currency. Most recently, reports are claiming that South Korea is creating a bill to verbod crypto trading. Even just the rumours of that caused for the stock of Bitcoin to fall.
So your best bet? With governments attempting to step te, it’s difficult to say what’s ter store for the future. While wij don’t recommend attempting to multiply your student loan off this volatile currency, it’s undoubtedly up to you whether you’re looking to get te the activity.