What is Bitcoin?
Defining this digital currency
S atoshi Nakamoto is the name used by the believed creator or creators of Bitcoin, the first digital currency that evolved as a result of the market crash in 2008. No one knows who this person or persons are since they have never been identified to the public. Satoshi created the Bitcoin white paper and later the cryptocurrency itself. Ten plus years later, the awareness and demand for Bitcoin increases. I will not go into the specific details on Bitcoin itself but focus on what is Bitcoin as well as the increase in this cryptocurrency in 2020.
I will very briefly cover Bitcoin to help explain what exactly this money is that you can’t see, taste or touch. I’ll describe what Bitcoin is and isn’t.
What is Bitcoin?
Bitcoin is just one of the thousands of digital currencies under the cryptocurrency umbrella. Currently, there are over 5,429 cryptocurrencies as of May 6, 2020. Each cryptocurrency has its various objectives and they all have a unique purpose.
Personally, I am not a tech guy or fully aware of the technological details on Bitcoin. I have spent more than half my life investing. My college major was political science so that is nowhere related to computers, technology, or engineering.
But I do get the general idea of what is cryptocurrency. Just don’t ask me to give you the technological aspects and the programming involved and we’ll be good.
I did come across a video that does a great job explaining Bitcoin. Austin does a great job explaining what exactly Bitcoin is in the video that has been viewed over one million times.
My First Encounter to the Bitcoin Market
So why did I get involved with Bitcoin three years ago? For many people who enter this space, it’s to learn about this new currency that could take over the fiat currency we currently use. Others get involved in Bitcoin as an investment.
I lean more toward the investment side of Bitcoin. Sorry to crush the hearts of those in this for the technological aspects of Bitcoin and cryptocurrencies. I’m not going to lie. I’m in this to make money.
A few years ago, you may remember Bitcoin reaching close to $20,000 for one coin. Currently, Bitcoin is sitting at $9,214.41, or 54% less of its all-time high, at the time of this writing.
Several people four or five years ago mentioned I should get involved with Bitcoin, but it didn’t make sense. I couldn’t understand how this digital currency was worth so much and you could not taste, touch, or see it.
At the time I was trying to really understand Bitcoin which was worth about $3500. Those who mentioned Bitcoin to me, this was under a network marketing platform. What hurt them was they didn’t take the time to explain to me what exactly Bitcoin was. I think these people were into the company more for the network marketing part of the business rather than Bitcoin itself.
As you know in network marketing, the more people who join you, the more money you receive as you join their team.
Many of these companies pushed me away from truly understanding Bitcoin until I watched a few videos that broke down Bitcoin and its true intent. There is also a Netflix documentary called Beyond Bitcoin that explains Bitcoin which you should check out to learn more about the history and intent of this digital currency.
Bitcoin is expensive
Its true Bitcoin can be expensive depending on the day you wake up. Some days Bitcoin could be trading for $10,000 for one Bitcoin. On other days, Bitcoin could be trading for $4000.
This market moves and when it does, it moves very fast. You can literally blink your eye, and Bitcoin can drop $1000 in price in seconds, or it can go up.
In my next article, I’ll cover more on the price movement and who controls this market. So make sure you subscribe.
With Bitcoin and other cryptocurrencies, you can buy a portion or a percentage of a Bitcoin and not have to pay thousands of dollars unless you have the money to spend.
So you can buy a fraction of a Bitcoin, and you should get an email of the transaction and see the percentage of the Bitcoin in your wallet.
Are you invested in Bitcoin?
Tom Handy is a writer, investor, and father of two kids. He retired from the Army and sits on several non-profit boards. Tom is the top Yelper in his community and a top Google Guide. He’s on several social media channels and can be found on Twitter @tomhandy1 and Instagram @tomhandy1.