Otherwise referred to as virtual currency or cryptocurrency, bitcoin is simply a peer-to-peer payment system that offers a digital alternative to the typical brick and mortar banking and financial tracacting. It’s something that most users will never see or touch, as it exists in computers. Exchanges are done through bitcoin wallet software, rather than the tradition bank accounts or regular pocket wallets. More importantly, there exists no central regulation system or banking, so the prices are determined by the shift in demand and supply.
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When using bitcoin, it’s imperative for the user to stay updated on the latest market trends. This not only helps to improve their safety while transacting online, but it also minimizes the amount of risk that the user has to undertake while using bitcoin. Here are some interesting bitcoin facts that are worth noting:
Buying goods with bitcoin
Just like all forms of money, bitcoin exist to facilitate the smooth exchange of commodities without any restrictions. The process has been gradual as most are starting to adopt bitcoin, but there are several ways you can use them to acquire what you need on the internet. There are several multi-million dollar industries that accept bitcoin as a form of payment, but you can also find a few other ways to use them.
As a bitcoin enthusiast, one of the simplest ways to use them for buying stuff is to acquire Amazon gift card. That’s because web-based retail companies like eBay and Amazon are still reluctant to include this digital coin as one of their banking methods.
Free market value
With no hard currency to hold in your hands, the bitcoin value is quite unstable and it fluctuates without following any regular pattern. However, the general value of bitcoin seems to be increasing daily. After the financial market crash, the value of a single bitcoin was about $2 in 2011. This value had increased drastically by 2017, with a single bitcoin selling at $19,000.
Bitcoin and fraud, hacking and bankruptcy
Aside from buying an Amazon gift card to allow bitcoin users shop online, investors view them as an ideal investment opportunity. Most investors use the traditional speculative techniques to try and predict the price changes and accumulate the profits in the shortest time possible. However, trading in bitcoin is not always this simple. While there are winners, there are also major losers in the bitcoin industry. For example, Mount GOX, a multi-million dollar bitcoin exchange company was driven out of business in 2014, citing hacking and theft as the major reasons.
Bitcoin is a finite currency that has a set limit. The number of coins that can exist in a lifetime is limited to 21 million and the production of new coins is set to be halved ever four years to limit their supply. This means that the supply might run out by 2140, but miners will still get rewarded through transaction fees.
Today, it’s estimated that almost 64% of the mined bitcoins sit unused in their individual wallets, depreciating and appreciating with time. Additionally, only 24% of the world’s populations know what the word bitcoin means. However, its estimated that bitcoin will be largely accepted by users from all over the world in the near future.