About Bitcoin Price What is Bitcoin? By Markets Insider Bitcoin keeps coming back in the headlines. With any Bitcoin price change making news and keeping investors guessing.
In countries that accept it, you can buy groceries and clothes just as you would with the local currency.
What is this?
Only bitcoin is entirely digital; no one is carrying actual bitcoins around in their pocket. Bitcoin is divorced from governments and central banks. It’s organized through a network known as a blockchain, which is basically an online ledger that keeps a secure record of each transaction and bitcoin price all in one place. Every time anyone buys or sells bitcoin, the swap gets logged.
Several hundred of these back-and-forths make up a block. No one controls these blocks, because blockchains are decentralized across every computer that has a bitcoin wallet, which you only get if you buy bitcoins.
Why Bitcoin is Gaining Traction
Why bother using it? True to its origins as an open, decentralized currency, bitcoin is meant to be a quicker, cheaper, and more reliable form of payment than money tied to individual countries. In addition, it’s the only form of money users can theoretically “mine” themselves, if they and their computers have the ability. But even for those who don’t discover using their own high-powered computers, anyone can buy and sell bitcoins at the bitcoin price they want, typically through online exchanges like Coinbase or LocalBitcoins.
A survey showed bitcoin users tend to be overwhelmingly white and male, but of varying incomes.
Why Invest in Bitcoin?
The people with the most bitcoins are more likely to be using it for illegal purposes, the survey suggested. Each bitcoin has a complicated ID, known as a hexadecimal code, that is many times more difficult to steal than someone’s credit-card information. And since there is a finite number to be accounted for, there is less of a chance bitcoin or fractions of a bitcoin will go missing.
But while fraudulent credit-card purchases are reversible, bitcoin transactions are not. Satoshi Nakamoto, bitcoin’s enigmatic founder, arrived at that number by assuming people would discover, or “mine,” a set number of blocks of transactions daily. Every four years, the number of bitcoins released relative to the previous cycle gets cut in half, as does the reward to miners for discovering new blocks.
The reward right now is As a result, the number of bitcoins in circulation will approach 21 million, but never hit it. This means bitcoin never experiences inflation. Unlike US dollars, whose buying power the Fed can dilute by printing more greenbacks, there simply won’t be more bitcoin available in the future.