Bitcoin
What is Bitcoin?
Bitcoin is a digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.
How does Bitcoin work?
Each Bitcoin is a computer file stored in a digital wallet on a computer or smartphone. To understand how Bitcoin works, it’s important to know that it relies on a decentralized network of computers. These computers verify and record transactions in a public ledger called the blockchain. This technology is known as cryptocurrency, as each transaction is encrypted for security.
Benefits of Bitcoin
- Decentralized system
- Lower transaction fees
- Easy to set up
- Secure and transparent
Risks of Bitcoin
- High volatility
- Regulatory risks
- Security risks
Conclusion
Bitcoin has created a new way of thinking about money and finance. It has the potential to revolutionize the way we transact online and has gained significant attention in the finance and technology industries. However, it is important for investors to carefully consider the risks associated with investing in Bitcoin.
