Bitcoin Basics: What is Bitcoin?

Bitcoin is a digital cryptocurrency that operates entirely online, independent of any traditional bank. It’s operated and verified only by the software and the people using it.

Adam Levine, the CEO and founder of Tokenly, as well as lead host and creator of the Let’s Talk Bitcoin podcast, eloquently explains what Bitcoin is: “A blockchain is literally a way for people who don’t trust each other to let their computers keep track of who owns what.  Bitcoin keeps track of who owns what money, but the same technology can let you resell your audiobook if purchased as a token on a blockchain.”

Bitcoin was created as an alternative to banks and the usual currencies. The Bitcoin creator wanted a way to give the power over money back to the people. There are no fees, no waiting periods (transactions are instant), no minimum balance requirements – none of the hassle and expense of traditional currencies.

“Bitcoin is a genuine technological breakthrough. In addition to enabling sending money peer-to-peer, online, without a central intermediary (something that was technologically impossible before), the technology also will enable us to more efficiently file patents, access our health records, trade stocks, buy movie/sports tickets, and notarize documents”, says Chris Wilmer, Ph.D., Asst. Professor of Chemical & Petroleum Engineering at the University of Pittsburgh and Managing Editor of Ledger“.

How do You Get Bitcoin?

So, you want in?

You can earn Bitcoin by using encryption techniques with a software program downloaded specifically for the use of earning Bitcoins. The software works to solve math problems, and every time a problem is solved or completed, you get some Bitcoins.

The process is called mining.

The longer it takes to solve a problem, the longer it will take for you to mine Bitcoins. Some people earn more than others because their programs are solving problems faster and/or, they are running multiple Bitcoin mining programs.

Note: Some Bitcoin miners solve problems faster than others. Finding the ones that solve faster, and therefore, earn Bitcoins faster, is ideal.

Big earners may also be using more computer power by running multiple programs on one computer and/or running Bitcoin programs on more than one computer.

According to Bitcoin miners, testing different Bitcoin mining software is the key to finding the ones that earn money faster.

You can also exchange your local currency, such as US dollars, for Bitcoin, instead of running these programs.

Who Created Bitcoin?

This topic is a bit fuzzy since the person or group of people who created Bitcoin remains anonymous.

Why would the inventor want to remain anonymous?

Because this person made a form of money that can be used anywhere, anytime, for free, and across country borders. It’s a huge slap in the face to traditional banks and financial institutions.

So, the creator of Bitcoin remains a mystery. It could be anyone – man, woman, or a group of people.

However, there is a theory…

His name is Satoshi Nakamoto, or that’s the pen name used anyway. The name sounds Japanese, but there are no personal, identifying details. The only communications from the creator were done in online forums before and during Bitcoin’s debut in 2009. In 2010, the communications came to a halt. The final, known communication was in 2011.

With the massive success of Bitcoin, whoever the inventor is, would be extremely wealthy.

What is a Bitcoin Worth?

The value of a Bitcoin fluctuates regularly, just like any other currency.

However, there are a limited number of Bitcoin available – 21 million. Once it is all paid out, that’s it. Just like the gold we use. Once it’s all used up; it’s gone. There is no reproducing it.

At the time of writing this blog, one Bitcoin is worth $5,580.48 USD.

Do Any Companies Accept Bitcoin?

“Bitcoin accepted here” signs are starting to pop up in businesses all over the world. There are thousands of companies that are now accepting Bitcoin payments, and that number will likely grow, especially with online businesses.

Where You Can Pay with Bitcoin:

Since this is Web Hosting Sun, let’s look at the tech, gaming, and web hosting companies that are now accepting the cryptocurrency:

  1. Amazon
  2. BigFishGames
  3. Bing
  4. Bitcoincoffee
  5. Bitcoin.Travel
  6. Dell
  7. ExpressVPN
  8. Green Man Gaming
  9. Grooveshark
  10. Lumfile
  11. Microsoft
  12. MIT Coop Store
  13. Namecheap
  14. Newegg
  15. PureVPN
  16. SEOClerks
  17. Steam
  18. TechCrunch
  19. Wikipedia
  20. Zynga

There are many more companies, large and small, in-person and online, now accepting Bitcoin. Next time you’re shopping check the store’s payment information to see if they accept the cryptocurrency, or shop through this website.

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