5 Things To Know About Bitcoin

Bitcoin since its conception has grown significantly and as of late, it has become even more popular. More and more people are now turning to Bitcoin as they had found it more convenient and easy. The White House, specifically President Barack Obama, is still mum about the digital currency but is likely that they perceive Bitcoin as less of a threat and more as a long-term opportunity.

The media had mostly portrayed Bitcoin in a negative light and has even deemed it dead countless of times. However, Bitcoin’s growth says otherwise.

If you’re not yet familiar with Bitcoin, then here are 5 things to know about it.

  1. What is Bitcoin?

There is not one definition that can completely describe what Bitcoin is all about. But to explain it in a simple way, think of it as like sending gold coins via email. Bitcoin is a digital currency that can be used to purchase services and goods. Unlike regular currency, Bitcoin is not printed and instead, it is created or ‘mined’ by solving mathematical problems.

  1. Who Controls Bitcoin?

Bitcoin is decentralized. This means that there is no need for a third party broker, financial institutes such as banks or the government. This means that the government doesn’t control Bitcoin and instead, it is controlled electronically by algorithms.

  1. How Does Bitcoin Work?

Basically, you would need a digital wallet or a Bitcoin wallet where you can store and send bitcoins. Creating or ‘mining’ bitcoins can be done by solving mathematical problems using a software specifically programmed to do so. Right now, bitcoin miners are mining as much as 25 bitcoins per mine.

  1. Who Created Bitcoin?

Bitcoin was created back in 2009 by a person or group called Satoshi Nakamoto. Up till now, the identity of Bitcoin’s creator is still anonymous. The main idea was to create a currency that is independent of a central authority which can be used to purchase services or goods anonymously.

  1. Is Bitcoin Legal?

For the most part, yes. However, it should be noted that Bitcoin’s legality is dependent on what kind of transactions you are making. If you use Bitcoin to buy illegal items such as drugs then that is definitely illegal.