We truly watched anxiously as Bitcoin owners became millionaires and millions of dollars were transferred on the black market. While the creator of Bitcoin was a secret his identity was soon unravelled as being Satoshi Nakamoto.
Those that had the opportunity to buy into this currency were reluctant, but millions were quick to follow this saga. Why? Mainly due to its volatility and uncertainty but as we can see those that did get eaten into the craze enjoyed the rewards.
Whereas the government can decide when they print more money and how to distribute it, Bitcoin does not have any dependence on a bank or even the government, Bitcoins are created through mining. This is a difficult process which means solving a number of maths problems on specialist Bitcoin software. The power required to run this software is significantly higher than a regular PC which is why many computers are usually linked together to form a group.
One year on and Bitcoin is now enjoying a stable and much more mature future. It is becoming more legitimate and is being pushed towards the mainstream adoption of this currency.
But would you buy a Bitcoin? For those that waited and watched Bitcoin as it was created and went on a rollercoaster ride may be considering to buy this currency now and store it in a safe place. But how does it work and where can you spend this?
To put in simple terms this is the internet’s version to money which is why it is often referred to as “crypto currency”. Although the coin can be sold it cannot be used twice. But very similar to paper money it can be kept in a wallet. These are digital wallets which can be stored in a secure cloud environment or they can even be given in a physical form. Unfortunately if the cloud wallet is hacked or you were unfortunate to lose your private Bitcoin key you will no longer have access to this Bitcoin. This is worth bearing in mind if you are considering buying into this currency.
You can use this currency to buy things from an array of merchants that accept this currency or further still it can be exchanged for cash through a direct buyer or an exchange. The choice is yours. Furthermore you do not need to know the complex nodes and hashes in order to get involved in this currency. There are lots of people buying and selling through exchange.