What the F**k is Bitcoin?
Summary: How does a currency just materialize, seemingly from thin air? Are they only for people who like buying drugs on the internet? What is a Bitcoin? Want to know how to invest in Bitcoin? We’ll break down the mystery for you.<br> What is Bitcoin?<br> If you find the concept of cryptocurrency confusing and, well, cryptic – you are certainly not alone. In the last few months, people have been foaming at the mouth over <a href="https://www.listenmoneymatters.com/go/coinbase/" target="_blank" rel="noopener">Bitcoin</a> raising its value to never seen before prices. I’m sure every day you hear someone talking about it, but many of us still don’t really understand what it is exactly.<br> <br> Bitcoin is the first decentralized digital <a href="https://www.listenmoneymatters.com/cryptocurrency-market/">cryptocurrency</a>. It’s like a digital token that is made of a hash- a random string of numbers and characters. It has no physical backing and can be sent electronically from one user to another, anywhere in the world. Because there are a finite number of the coins, there is scarcity so the value constantly fluctuates.<br> <a href="https://www.listenmoneymatters.com/go/coinbase/">Bitcoin</a> is not run by a single company or person- it’s run by a decentralized network of computers around the world (owned by regular people) that verify all transactions. Similar to how Wikipedia is maintained by a decentralized network of writers.<br> How to invest in Bitcoin<br> So, how can you get your hands on some of these? The easiest way to buy or sell digital currency is through an online platform like <a href="https://www.listenmoneymatters.com/go/coinbase/">Coinbase</a>, which is the most popular cryptocurrency platform in the world right now. With its super simple interface, it is very easy for first-time buyers to buy Bitcoins.<br> <a href="https://www.listenmoneymatters.com/go/coinbase/"></a><br> It’s just like using any other online investment marketplace. First, you create an account or “digital currency wallet” where you can safely store your money. It’s not safe to store your cryptocurrency on an exchange wallet since you don’t have an access to your private key. But it’s convenient if you are trading every day.<br> Next, connect your bank account so that you can exchange local currency into a digital currency. Boom, you’re done. You can start buying and selling currencies. Coinbase currently allows its customers to purchase and sell three of the most popular cryptocurrencies – Bitcoin, Litecoin, and Ethereum.<br> How to use Bitcoins to buy things<br> If you acquired some digital currency you might want to spend it at some point but where can you use it? Who accepts this imaginary currency as payment? What makes it worth anything?<br> Same thing that makes a dollar worth anything. A bunch of people got together and agreed that it had value. Without that, it’s just a piece of paper. If you and I agree they have value, I can buy your TV for some magic beans.<br> Silk Road was an anonymous online marketplace for illegal drugs. They accepted Bitcoins because they are so hard to track and that’s one of the things that helped the currency gain traction.<br> However today more business are accepting Bitcoin as a form of currency. You can buy and sandwich at Subway, sign up for Ok Cupid or buy a new couch on Overstock with Bitcoin but don’t try and buy bananas at your corner deli. Here is a <a href="https://99bitcoins.com/who-accepts-bitcoins-payment-companies-stores-take-bitcoins/">list of other companies that accept Bitcoin</a> as payment.<br> Mining for Bitcoins<br> In 2009 when the Bitcoin algorithm was created by Satoshi Nakamoto (pseudonym), a finite number of bitcoins that will ever exist was set: 21 million. As of today, more than 16 million are in circulation and that number is rising daily.
