It’s time to put your money where your monitor is, and while it doesn’t grow on trees, it certainly does grow in your hard drive.
Today we’re counting down our picks for the top 10 Bitcoin facts.
10) Bitcoin, otherwise referred to as electronic money or virtual currency. Bitcoin is a peer-to-peer payment system that offers a 21st century alternative to regular brick-and-mortar banking. A Bitcoin is something that most users will never see and never touch beyond their computer screens. Exchanges are made via wallets software rather than the traditional wallet in your back pocket and there exists no central bank or authority so the value of your bank balance is set entirely by the supply and demand of the market.
9) Buying things with bitcoins. As with all money, it’s best if you’re able to spend it it’s been gradual but there are more and more commodities becoming available to Bitcoin holders. Perhaps the most high-profile acceptor of the currency is Virgin Galactic. Their upcoming space tourist flights are purchasable. If you prefer your transport a little more traditional then Lamborghini is the first motor company
to give the go-ahead. Also, what car-stereo would be complete without Spice Girl Mel B. She was the first musician to recognize payments for her music so there’s something you can buy right now. If you’re into that sort of music. Anyway, moving on.
8) The Bitcoin supply and validation of transactions is romantically called mining with millions of dollars worth mined or exchanged electronically. Bitcoin transactions are verified using an extremely complex algorithm and these verifications are done by a large, network of mining computers competing against each other. When a miner successfully verifies a transaction he or she is rewarded with a small amount
of bitcoins. This is also how new bitcoins are introduced into the system and mining is a lot of work. Globally the network of mining computers is now over 250 times more powerful than the world’s top 500 supercomputers combined.
7) The value with nothing to hold in your hand. The bitcoins value might seem indecipherable and as a new concept it does tend to fluctuate however in general, the value seems to be increasing. In November 2011 after a crash, a single Bitcoin was worth £2.25. In November 2013, a Bitcoin topped £1100 in value and briefly was worth more than an ounce of gold. Just imagine the level of security when the first Bitcoin cash machine opened in Vancouver Canada the previous month.
6) Bitcoins and bankruptcy an old saying says you have to speculate to accumulate and there are speculators aplenty when it comes to Bitcoin while there are winners there are inevitably losers – in February 2014 Mount Gox the one-time largest Bitcoin exchange was forced to file for bankruptcy protection due to possible hacking theft or mishandling that cost them in excess of four hundred and fifty million dollars bitcoin is a currency that can lose up to 80 percent of its value in seconds so Mount Gox was in very big trouble very quickly.
5) Banning the bitcoin, probably because it subverts the traditional banking system and works outside government regulation, bitcoin is outlawed in many around the world and is heavily frowned upon by many others. In July 2013 Thailand became the first country to completely ban the currency, though they later relaxed the ruling and China with its higher global profile banned banks from trading bitcoins. In December of the same year the US Treasury has also flexed its monetary muscles by shutting down a physical Bitcoin production company in 2013.
4) Know your limits. The number of bitcoins that can exist is limited to 21 million and the production rate is scheduled to be halved every four years to ensure that the value of a Bitcoin is not lost. This means that supply will run out around 2140 and although, miners will no longer be rewarded with new bitcoins, they will still be paid for their efforts through transaction fees. As it stands today over a century before the deadline roughly 64% of bitcoins sit unused in their respective accounts appreciating and depreciating with time.
3) WikiLeaks the notorious organization. WikiLeaks relies very heavily upon this futuristic form of finance. In mid-2011 the non-profit whistle-blower group began using Bitcoin as a method of processing donations, because other money transfer companies wouldn’t deal with them. To become so dependent on something so unpredictable is perhaps not the wisest of moves but so far using the cryptocurrency hasn’t done a lot of harm. watching the world change as a result of your work is priceless.
2) Silk Road. The equally infamous, Silk Road website used Bitcoins as its form of currency. A black-market trading site that specialized in illegal drugs and goods. As well as some more reputable products, it provided browsers with anonymity andm made its money using bitcoins. When the alleged site founder Ross Ulbricht was arrested his estimated fortune was so inconceivable that it’s believed that well over half remains unaccounted for.
1) Bitcoin beginnings. Satoshi Nakamoto is the person or persons behind Bitcoin. Launching the software in 2009, Nakamoto past majority control on to scientist Gavin Andresen in late 2010. In the early comments found on the internet, he says it’s like better gold. Nakamoto is believed to be in possession of 1 million bitcoins equivalent to over 23 billion pounds, but his name is probably a pseudonym. The real identity of Satoshi Nakamoto is unknown it’s been suggested that electronics companies, Samsung, Toshiba, Nakamichi and Motorola are the founders. There’s been no confirmation and it still remains a mystery for the modern world. To some Satoshi Nakamoto is the most interesting person to have ever created something.
The world needs new currency polciies