Bitcoin joined the financial world’s mainstream last December when Chicago-based CME Group and the Chicago Board Options Exchange received approval from the Commodity Futures Trading Commission to begin trading bitcoin. This is big news for the cryptocurrency industry and it has many users concerned about regulation of digital currency and what that means for their privacy and investment future.
Understanding cryptocurrency and making sense of Bitcoin is not difficult once you know what it is and why it has become as popular as it is. Let’s take a look at some frequently asked questions to help you understand it better.
What Is Bitcoin?
It is an electronic form of currency that has no physical presence anywhere in the world. There are no physical “coins” per se, as Bitcoin exists only on the Internet. It is based on a technology called block-chain which isa continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a cryptographic hash of the previous block, a timestamp and transaction data.
Is Bitcoin Unique?
It is not unique. In fact, there are more than 1200 cryptocurrencies listed on CoinMarketCap.com.
Why Has the Price Gone Crazy?
It’s pricing has been volatile lately and that is merely due to supply and demand. There are no other forces as work, simply people wanting to buy and not enough Bitcoin available to meet the demand.
Should I Buy Bitcoin?
Should you buy crypto? Asking that question is like asking if you should have pizza for lunch. The choice is yours and there are risks involved as with any investment. A good rule of thumb is to not invest any capital that you cannot afford to lose tomorrow. It is not for the timid, but neither is any other form of investment. Great rewards sometimes involve risk.
What Can I Do with Bitcoin?
It can be used to buy merchandise anonymously, it can be used to pay for services, buy local products, make purchases online or anything else you can do with cash. More vendors are accepting Bitcoin today all over the world.
Who Created It?
It was created by an unknown person in 2009 under the alias of “Satoshi Nakamoto.”
Where Can You Trade Bitcoin?
It can be traded on bitcoin exchanges where can buy and sell using various currencies. Bitcoins are stored in digital wallets that exist in the cloud or on your computer. Other casinos to look at
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