The Truth About Bitcoin

This not so new cryptocurrency has slowly made its way into the public eye but for many, it is still an unknown entity. What exactly is it and what is it all about? 

Cryptocurrency is something we have lightly mentioned in our social media posts and have mentioned a little in past blog posts. But for this blog we wanted to dig a little deeper into the topic and explore this possible worldwide currency. For many online traders, gamers, and business owners that use bitcoin, the idea isn't new to them. But for many people it is still a mysterious unknown that they just don't understand. We wanted to touch on the topic and explain what it is and how exactly it works once you join the world of an online currency! 

• What is Bitcoin? It is a digital currency that can be used to buy or sell items to people or corporations that accept it as currency. It only exists online, and not in the physical world. 
• In technical terms, every single bitcoin is a computer file stored in an online wallet application that can be loaded onto your smartphone or computer. These wallets are free! 
• Bitcoin was actually created over ten years ago in 2008 when the Bitcoin Whitepaper was published. 
• You use each bitcoin by sending them to someone else's digital wallet and then receive a good or service in exchange for this digital transfer. Sounds pretty similar to the use of paper money, right?  
• Each transaction of a bitcoin is saved and recorded and is available for the public to see. These public records are kept in the blockchain (another topic we have lightly touched on in both social media posts and shared articles!). Making these records available to the public gives the currency proof of integrity. 
• Unlike any physical form of currency that is managed and kept by a bank, bitcoin has no bank and has nothing in place to regulate it. It is always accessible 24/7/365. 
• Every time a transaction occurs, to receive a bitcoin into your digital wallet you must complete a mathematical equation. This is called mining. Those going after cryptocurrency this way are called miners. You can also buy bitcoin in a similar way that you might transfer your money to a different currency in paper money when traveling to a different country. Each bitcoin is worth a certain amount of money, depending on the current marketplace. The value also depends on how much it is worth in your part of the world. 
• The value, just like anything of worth, depends on how much people are willing to pay for it. It is slowly starting to emerge from the background of the Internet and is making its way directly into the mainstream world. There are even hedge funds located across the globe that specialize in cryptocurrency!  
• It is easy and accessible to anyone in the world. It's easy to go to their website, learn about the process of what bitcoin is and how to accumulate it, and begin on your path of using it as currency. 
• It is accepted by places all over the world. You can use it to pay for your hospital stay in Poland, in online jewelry stores, and more. They are also accepted as currency in certain billion-dollar companies like Dell, PayPal, and Microsoft. 
• Even though it is becoming more recognized by the day, it is still very volatile. It is very risky to work with. Your bitcoin wallet is online, so just like any website or email address it too can be hacked into. Once hacked your bitcoin can be drained into the hacker's wallet and your personal information exploited. It can also be held for ransom for physical things or money too. When it comes to actual usage, transaction delays aren't uncommon. But ironically for some third world countries, this volatile currency is more reliable than their own paper money. 

There is still a lot out there to learn and to understand about Bitcoin, but we hope this information started you on your path of understanding cryptocurrency. Will it become the globally accepted form of currency? Who knows! It looks like we will just have to wait and find out!

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