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 related to the price of Bitcoin. It started at under 10 cents per bitcoin when it was introduced in early 2009. Since then, it has risen steadily and recently hovered around $4,000 per bitcoin. So in terms of the value of bitcoin or the exchange rate of bitcoin, this is the most remarkable appreciation in value and has created many, many millionaires over the last eight years.

The Bitcoin market is global and citizens of China and Japan are particularly active in buying it along with other Asian countries. However, recently in the Bitcoin news, the Chinese government has tried to crack down on its activities in that country. This action reduced the value of Bitcoin for a short time, but it soon bounced 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 as “virtual gold” and released the first Bitcoin software in early 2009 during the height of the US economic crisis. They knew that to have lasting value, like gold, there must be a limited supply. So when it was created, they limited the supply to 21 million bitcoins.

Bitcoin mining refers to the process by which new bitcoins are 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 receive a certain number of Bitcoins in return.

The question that then arises is whether Bitcoin mining is worth it. The answer is NO for the common man. It requires a lot of sophisticated knowledge and a powerful computer system and this combination of factors makes it out of reach for the masses. This is even more true for Bitcoin mining in 2017 than in years past.

Many wonder who accepts Bitcoin? This question is asked in different ways, what are the stores that accept bitcoins, what are the websites that accept bitcoins, what are some retailers that accept bitcoins, what are some places that accept bitcoins and where can I spend bitcoins.

More and more companies are beginning to see the value of accepting cryptocurrencies as a valid payment option. Some big companies that do are DISH network, Microsoft, Expedia, Shopify stores, Newegg, Payza, 2Pay4You and others. Two major latecomers right now are Walmart and Amazon.

Ethereum is Bitcoin’s strongest rival 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 still ranks far behind Bitcoin in usage, adoption and value.

A question that often comes up is often related to Bitcoin scams. This author has a friend who made a purchase from a company that promises 1-2% growth per day. The company website has no contact information 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.

One needs to know how to buy bitcoins, how to buy bitcoin or how to buy bitcoin with credit card to get started. Coinbase is a very popular site for this. Their fee is 3.75% and the purchase limit is $10,000 per day. This would probably be the easiest way to buy bitcoins.

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

There are people who would like to buy bitcoin instantly. 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 is to buy 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 also probably the best place to buy bitcoins.

One should 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 keys for privacy. 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 bitcoins through 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 that are designed for use from a mobile device.

A question that sometimes comes up is about bitcoin stocks or how to buy bitcoin stocks. By far, the most common way to proceed in this area is to buy Bitcoin directly, rather than its shares.

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

The Bitcoin to USD exchange rate has been a closely watched indicator both on a daily basis and over the long term over the past 8 years since its introduction to the global financial market. A popular company that gets the most up-to-date rate on Bitcoin valuation is XE. They show the Bitcoin to USD estimate as well as the complete Bitcoin price chart, Bitcoin value chart and Bitcoin to USD chart. If you ask “How much is a Bitcoin worth?” you will always know from their constantly updated rankings.

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

In terms of Bitcoin cash, that is. to get USD from selling Bitcoin, Bitwol is one company that allows you to do this. WikiHow is another company that will guide you through this process.

The estimated value of Bitcoin is a topic that is often discussed. In January 2015, the price of one bitcoin was $215. It’s currently around $5,000. This is a phenomenal increase and far exceeds what most experts would have predicted at the time. Currently, when looking at forecasts from experts around the world, the general answer seems to be that the highest value will settle at around $10,000, with one expert even predicting a value as high as $100,000.