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 concerns the Bitcoin price. When it was introduced in early 2009 it started below 10 cents per Bitcoin. Since then it has grown steadily and has been hovering around $4000 per Bitcoin lately. So when it comes to Bitcoin value or Bitcoin rate, this is the most significant appreciation in value and has created many, many millionaires in the last eight years.

The Bitcoin market is worldwide and citizens of China and Japan have been particularly active in their purchase along with other Asian countries. However, recently in the Bitcoin news the Chinese government has tried to suppress its activities in that country. This action briefly lowered the value of Bitcoin, but it soon bounced back and is now close to its previous value.

Bitcoin history chart is very interesting. Its founder was an anonymous group of brilliant mathematicians (using the pseudonym Satoski Nakamoto) who designed it to be “virtual gold” in 2008 and released Bitcoin software in early 2009 during the US financial crisis. They knew that to be of lasting value, just as gold had to be in limited supply. So they limited their supply to 21 million Bitcoins at creation.

Bitcoin mining refers to the process of creating new Bitcoin. With conventional money, the government decides when and where to print and distribute it. With Bitcoin, “miners” use special software to solve complex mathematical problems and issue a certain amount of Bitcoin in exchange.

A question that then arises is, is Bitcoin mining worth it? The answer is NO for the average person. Highly sophisticated knowledge and a powerful computer system are required and this combination of factors makes mass unattainable. This applies even more to bitcoin mining in 2017 than in recent years.

Many people wonder who accepts Bitcoin? This question is asked in many ways, what are the stores that accept bitcoin, what are the websites that accept bitcoin, what are some merchants 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 of the major companies that do this are DISH network, Microsoft, Expedia, Shopify stores, Newegg, Payza, 2Pay4You and others. Currently, Walmart and Amazon are the two main holdouts.

Ethereum is Bitcoin’s strongest rival in the cryptocurrency market and many ask the question of Bitcoin vs Ethereum. Ethereum was created in mid-2015 and has gained popularity, but still lags behind Bitcoin in usage, acceptance and value.

A question that comes up often relates to Bitcoin scams. This author has a friend who made a purchase from a company that promised 1-2% growth per day. The company’s website listed no contact information and after a couple of months, the website disappeared in one day and my friend lost all the money he had invested, which was thousands of dollars.

How to buy bitcoins, how to buy bitcoins or how to buy bitcoins with credit card should be known to get started. Coinbase is a very popular site 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 offers this service and has clear step-by-step instructions to follow with your debit or credit card.

There are those who would like to buy Bitcoin immediately. It can be done on 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. The easiest way is probably to buy it through a digital asset exchange like the previously mentioned Coinbase. Opening an account with them doesn’t hurt and once you link your bank account with them you can buy and sell Bitcoin pretty easily. This is probably also the best place to buy Bitcoins.

One should know what a Bitcoin wallet is and how to use it. It’s just the Bitcoin equivalent of a bank account. It allows you to receive, store and send Bitcoins 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. A web wallet allows you to send, receive and store Bitcoin through your web browser. Another type is a desktop wallet where the wallet software is stored directly on your computer. There are also mobile wallets designed to be used by a mobile device.

A question that comes up from time to time is about Bitcoin stocks or how to buy Bitcoin stock. The most common way to get ahead in this regard is to buy Bitcoin directly, and not its stock.

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

The Bitcoin USD exchange rate is a closely watched benchmark, both daily and long-term, over the last 8 years since it entered the world financial market. A popular company to get the latest rate on Bitcoin valuation is XE. They show Bitcoin to USD valuation and also complete Bitcoin price chart, Bitcoin value chart and Bitcoin to USD chart. If you ask, “How much is a Bitcoin?” You will always know from the constantly updated lists.

Similar questions that arise in this area are bitcoin rate history, live bitcoin price chart, bitcoin to dollar exchange rate, bitcoin to dollar chart and bitcoin 5 year chart. The previously mentioned website, xe, is a good source for answering these questions.

In terms of Bitcoin cash, that is. From selling Bitcoin to getting USD, Bitwol is a company that allows you to do just that. WikiHow is another company that will walk you through this process.

The projected value of Bitcoin is a frequently debated topic. In January 2015 the price of one bitcoin was $215. Today it is around $5000. This is a huge increase and far beyond what most experts would have projected at the time. Today, when looking at the forecasts of experts around the world, it seems that the common answer is that the top value will settle around $10,000 and one expert even projected the value to reach $100,000.