Bitcoin is a digital currency that was created in 2009 by an unknown programmer, or group of programmers. The overall world Bitcoin impact permeates a growing portion of the financial ecosystem. Bitcoin can be used to make purchases online and in brick-and-mortar stores using mobile apps. Bitcoin is the first of hundreds of “cryptocurrencies,” which are forms of currency that exist digitally through encryption. Bitcoin has become increasingly popular since its creation, with the total number of Bitcoin users around the world growing to more than 5 million today from 500,000 in 2013. Bitcoin Revolution can help you in providing proper tips and tricks for bitcoin investment.
Statistical Analysis of Bitcoin
The following graphics show just how much Bitcoin use has grown over the years:
As Bitcoin has increased in popularity, so have its values: one Bitcoin was worth $10 at launch but reached $1,250 recently —a 600% increase in value. As Bitcoin values have increased, Bitcoin has been used for both legitimate and illegal trade. Bitcoin’s anonymous nature makes it a popular choice for criminal activity, such as purchasing illicit goods online. Bitcoin is also a favourite of political activists in nations with restrictive economies who want to circumvent government controls on their currency.
Bitcoin has faced some criticism over the years due to concerns regarding Bitcoin’s veracity and the potential threat Bitcoin may pose if it becomes widely adopted by criminals or terrorists. However, Bitcoin continues to grow every day and remains one of the most exciting new technologies to emerge in recent years.
Bitcoin has grown in popularity since its inception in 2009 becoming the top cryptocurrency available. Bitcoin is changing how the world does business, with Bitcoin-based transactions happening all over the world. Bitcoin was created by an anonymous person or group under the name Satoshi Nakamoto and released as open-source software in 2009.
What is Bitcoin?
Bitcoin is a digital resource (like money). It can be used to purchase goods or services online or converted into other currencies such as actual U.S. dollars, Euros, etc., depending on who you are trading with. Bitcoin value fluctuates according to demand but it can also be traded for other types of currency at exchanges like MtGox which once made up 90% of Bitcoin transactions worldwide before suspending trading in early 2014, shortly after Bitcoin value plunged from about $1200 to around $500. Bitcoin value increased exponentially since 2009 when it was worth less than a dollar. As of this week, Bitcoin is worth about $564 USD.
Bitcoin transactions are all recorded on what is called the Blockchain. The Blockchain functions as an open ledger where users can see every Bitcoin transaction ever made and track the history of any given Bitcoin online. Bitcoins are mined by people who use computers to process Bitcoin transactions which in turn creates more Bitcoins for them. Mining requires an enormous amount of computing power so most miners have joined mining pools or collaborated with other users in order to find new Bitcoins faster and split the profits accordingly.
The number of Bitcoins that can be created is regulated by Bitcoin mining which is designed to max out at 21 million Bitcoins. Currently, there is about 12.1 million Bitcoin in existence with only 21 million to go before the limit has been reached. This will then create the scarcity that should theoretically increase Bitcoin value over time as it becomes more difficult to “mine” for new Bitcoin using computing power.
The Bitcoin community consists of both tech-savvy folks who embraced Bitcoin early on and other people who have come across Bitcoin later in its lifespan realising the potential benefits of it relative to traditional forms of payment. The following graphic displays some of the key characteristics of Bitcoin users:
Improving Business Worldwide
One incentive for businesses to use Bitcoin is the lower transaction fees involved with transferring virtual currency compared with those of credit cards, which usually involve transaction fees of around 3% of the total. Bitcoin can also be used to reduce exposure to foreign exchange rates by avoiding the conversion process altogether, making Bitcoin use attractive for international transactions that are otherwise expensive because of multiple conversions required between currencies.
Bitcoin is starting to make an impression on brick-and-mortar shops as well. Companies like Bitcoin Coffee offering customers the ability to pay for their coffee in Bitcoin, and accepting Bitcoin payments for any other products they offer at their store. They even give away free coffee if Bitcoin value goes up significantly compared with real-world currency by the time it’s purchased.
The future holds great things for Bitcoin users. The world Bitcoin impact has been tremendous on our financial systems and the expanding community will only become more popular as people realise that Bitcoin will swallow the whole future in it.