What is Bitcoin?

What is Bitcoin?

Bitcoin is currently the leading cryptocurrency on the market as of 2018. With the skyrocketing popularity of Bitcoin, various stores and retail chains are beginning to accept the currency as valid, along with some popular online retailers. While Bitcoin is steadily climbing and remains extremely valuable, there are still a few concerns regarding the future of the coin. For some, understanding what Bitcoin actually is remains a challenge.

Bitcoin – a new currency?

What are Cryptopcurrencies?

Cryptocurrencies are virtual currencies, created by individuals around the world. Cryptocurrencies use challenging algorithms and what are known as “blockchains” to store these virtual coins, allowing others to virtually “mine” the coins using their computers or hardware setups.

Why Do Cryptocurrencies Have Value?

When developers create and launch a new cryptocurrency, they often do so with a set cap limit on the number of coins that are ever going to be in virtual circulation. The more money that is invested into these coins (think of purchasing stock in a company you believe in) the more each individual coin gains in value. With enough backers and money invested in one central currency, it gains value to outside vendors and markets.

What is the Current Value of Bitcoin?

The value of Bitcoin is constantly fluctuating, especially with newcomers onboard and those who have sold off their Bitcoin as the price spiked to nearly $20,000 a coin. As of January 2018, Bitcoin is still valued at over $14,000 USD a coin, making it a massive market compared to other online virtual coins.

What Other Cryptocurrencies are Available?

While Bitcoin is dominating the current cryptocurrency market, there are other coins that are quickly rising in value. Litecoin, as well as Dogecoin, are just two of the hottest cryptocurrencies available, with Dogecoin launching as a frivolous and silly coin–only now to reach a valuation of over $1 billion dollars.

How Do You Mine Bitcoin?

There are various methods of mining Bitcoin that range from using your mobile phone to custom mining rigs or professional server rentals. As a cryptocurrency such as Bitcoin becomes more popular, less of the original coins become available to virtually “mine”. As coins become more difficult to mine, individuals are required to use better machines and more powerful computers in order to successfully crack the algorithms for the cryptocurrency itself.

While mobile phones may have the ability to gather tiny amounts of cryptocurrency (depending on the coin you are interested in), they become obsolete compared to larger mining systems that are custom built or purchased solely for the purpose of mining Bitcoin. Another way to get started with mining Bitcoin is to do so with a professional server rental service or free trial online to test settings and become familiar with the hardware.

Whether you have always had an interest in the stock market or if you are looking to get involved with a new way of investing, Bitcoin is one way to get started. Even if you do not have a large sum to invest into Bitcoin, putting in just a bit may result in rapid growth.