A little information about the world’s most popular cryptocurrency
Since Bitcoin continues to surpass all expectations we thought it was about time to provide a little information on the world’s most popular cryptocurrency.
Firstly what is Bitcoin?
The answer to that question is “the world’s first decentralized digital currency” however that sounds rather complicated and hard to say let’s simplify things a little.
We all know money is what makes the world go round we exchange money for goods and services, way back when people used gold coins before switching to paper money released by various banks around the world using all sorts of different currencies too in principal do the same thing.
Today we are in the age of digital money where everyone has a bank account and the banks basically trust their computer systems to keep track of how much is in everyone’s accounts, a “centralized” system.
Then came Bitcoin, back in 2008 a researcher published a paper describing a way of tracking digital wealth by circumventing banks, a system which he called “Bitcoin” and outline a system that did not rely on a bank to keep a ledger or file to track wealth, a “decentralized solution.”
So how many Bitcoins are there?
There is a limit to the number of Bitcoins out there people and that number is 21 million coins and that figure is expected to be reached at some time around the year 2140, currently roughly 16.7 million Bitcoins are in circulation with 12.5 new coins added to the system every 10 minutes or so.
What makes up a Bitcoin?
Bitcoins themselves are made up of lots of smaller units of which the smallest unit is called a Satoshi, named after the creator of the currency Satoshi Nakamoto, one Satoshi is equivalent to one hundred-millionth of a single bitcoin and worth roughly $0.0001 at current market value.
What are the advantages of using Bitcoin?
Perhaps the most talked about advantage of using Bitcoin is that governments or banks cannot get involved in a person’s business they have no power to freeze accounts or block transactions meaning that transactions are completely between users. Another advantage is that there is no sales tax and unlike standard wire transfers especially international ones the fees are a lot lower, and the waiting time is practically non-existent unlike some banks which take up to five working days to process a transfer.
What does the increasing popularity mean for Bitcoin?
Bitcoin started the year trading at $1000 per coin and has exploded over the course of this year currently at the time of writing this a single coin is trading for $11,727.99 that’s an increase of over 1000 percent so far in 2017. Had you invested when Bitcoin first went on sale way back in 2013 if you made a $1000 investment in the cryptocurrency you would now be sitting on a cool $80 million!! With cryptocurrencies becoming more and more widely accepted and used many are predicting their values will continue to rise.
Let’s talk about “Market Cap”
Market cap or Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. At present the total value of the Bitcoins released into circulation has reached the new high of £190 billion, which makes Bitcoin worth more than companies like Disney, BlackRock and Goldman Sachs.
For those relatively new to the cryptocurrency you probably have heard the name Bitcoin thrown around in bars or at work but you might not be aware that there are currently over 1,000 other types of cryptocurrency with some boasting an even bigger percentage growth on the year than Bitcoin.
The only real question left to ask is will you be investing in cryptocurrency in the future or will you stay with more traditional methods such as banks or keeping money under you’re mattress?