Well, probably not overnight. But Bitcoin is the hottest thing happening right now in the coagulating cauldron of online finance, and it might not be a bad idea to get in while the going’s good.
Here’s what you should know about Bitcoin, the new kind of futuristic money that everyone’s talking about (but no one ever seems to have on hand).
Bitcoin is a cryptocurrency, and for many people, that’s an unfamiliar phrase. The idea of cryptocurrencies has been around since 1998, when computer scientist and cryptographer Nick Szabo (1) created “Bit Gold.” Like Bitcoin eventually would, it required users to complete a proof-of-work function, essentially a processing task on a computer.
Cryptocurrencies essentially require difficult computer decryptions of data in order to regulate users generation of funds, and to verify transactions of funds once generated. Investing in bitcoin with a good plan can make you a millionaire. But for this, one needs to have patience and the right knowledge about the market flow. Binance is one of the most trendy cryptocurrencies these days, in which people regularly invest for high returns. People came to know about this in the year 2017.
The computing power needed to produce a unit of cryptocurrency is enormous, limiting the ability of people to “mine” or create new units and thus regulating the amount of the currency at any given time.
Bitcoin emerged, seemingly out of nowhere, in 2009, as open-source-software. It was credited to a Satoshi Nakamoto, a pseudonym for a programmer or group of programmer who created the software and devised its key elements.
Nakatomo continued working on developing Bitcoin until December of 2010, and his/her/their identity has yet to be confirmed (although many suspect Szabo, creator of Bit Gold).
Whoever Nakamoto is, they’re doing pretty well: they’re believed to own around a million bitcoins. That’s almost $5 billion US.
Bitcoin is not the first cryptocurrency, but it’s the first decentralized digital currency since it doesn’t have a central bank or a single administrator to govern it.
This means that bitcoin isn’t dependent on a particular person or bank to regulate its supply and demand, making it a truly independent currency.
Instead of being regulated by a government or bank, transactions are verified by network nodes, then recorded in a public ledger called the blockchain that is shared among all the nodes and records the ownership history of each individual unit.
The Crypto-Cash Community
Bitcoin is now used by 3-6 million unique users, according to Cambridge University. Its mining community is much smaller, as the computer technology required to mine Bitcoin is massive.
Mining essentially entails maintaining the blockchain by verifying and collecting transactions into an encrypted block.
Creating a new block now requires 200.5 quintillion attempts at finding a specific number called a nonce;
the computing power required is unaffordable for all but the wealthiest people.
So, the majority of the community is interested more in trading.
You can also use Bitcoin to make purchases, from over 100,000 different businesses.
But many people are now holding onto their Bitcoins, as their value has the potential to increase to unheard of heights
Investing In Air?
If you’re a bit confused, that’s understandable. Bitcoin is tough for people outside the insular crypto-currency community to fully grasp.
And since it doesn’t exist in any material form, it may seem liable to evaporate into thin air.
But if you can get past the ethereal nature of the currency, what’s easier to understand is the potential for big earnings.
Bitcoin is a very volatile currency, shifting in value rapidly, but the potential ROI for investors willing to take a risk is massive, far beyond any other simple currency investment.
For example, you could have purchased 1,000 Bitcoins in early 2011 for $300. If you sold them in November of 2013, that $300 investment would net you $1,242,000.