Bitcoin is a digital currency, or cryptocurrency, that was created in 2009 by the pseudonymous Satoshi Nakamoto. The purpose of bitcoin was to provide a decentralized system of currency in which transactions could be carried out anonymously and verified electronically.
As a peer-to-peer system, bitcoin transactions don’t rely on any intermediary, like a bank or a creditor. While users can earn bitcoin through mining (verifying blockchains) or receiving bitcoin in payment, purchasing bitcoin online is the easiest and most popular way to acquire the currency.
Buying Bitcoin Online Is Fast
With many bitcoin exchanges offering nearly instant transactions from U.S. banks, PayPal, and various credit card companies, it’s easier than ever to purchase bitcoin online. In the past, transactions could take several days, during which time the value of the bitcoin could fluctuate, but nowadays a purchase can be confirmed within minutes.
Bitcoin Is A Good Investment
There is a limit to the number of bitcoins that can be created, and while the limit has not yet been reached, the end is approaching. In fact, the number of new bitcoins that can be created through mining is halved approximately every four years. As with any commodity, scarcity increases bitcoin’s value. In fact, since it first achieved parity with the U.S. dollar in 2011, bitcoin has grown in value to more than $8000 as of November 2017.
Bitcoin Makes Overseas Transactions Simpler
Bitcoin is a global currency that is not under the control of any government; thus, there is no money lost to exchange rates, and bitcoin owners cannot have their bitcoin assets seized. In addition, overseas purchases with bitcoin are predictable and secure and automatically free from taxation.
Bitcoin Transactions Are Completely Private
Bitcoin users set up an electronic wallet to hold their currency; however, no one but the user knows the location of the wallet or how much bitcoin is in it. Because they are encrypted, bitcoin transactions cannot be tracked, and this gives users a far greater degree of privacy than any other form of commerce.
Getting started with bitcoin is as simple as opening an electronic wallet and finding a bitcoin exchange. To learn more about using or investing in bitcoin, check out this useful reference.