At the time of writing, the value of all Bitcoins in circulation is a staggering $811 billion, which is larger than the GDP of some entire countries!
This got us wondering exactly what it is, and why Bitcoin is so popular.
What Is Bitcoin?
Bitcoin is a type of digital currency. Unlike say the British Pound, which exists in the form of bank notes and coins, bitcoin is only stored and exchanged via computer systems. Each bitcoin exists using an encrypted code, which is simply a string of numbers and letters.
Bitcoin is a decentralised currency, meaning that it exists without regulation by a government or central bank (like the Bank Of England).
Users can send and exchange bitcoin without the need for an intermediary, eliminating the transaction fees that you might experience with normal money.
The Growth Of Bitcoin
Back in 2010, Bitcoin’s price was around 10 cents per Bitcoin.
Back then, very few people knew about, or had purchased bitcoin.
Over the last 5 years in particular, it’s popularity has soared, and so has the price.
At the time of writing, one Bitcoin costs over $55,000!
Why Is Bitcoin So Popular?
Many people are sceptical about bitcoin, believing that it is too risky, and doesn’t have a long term future.
But, fans of bitcoin will tell you that it has lots of benefits.
Bitcoin is decentralised, meaning it is not controlled by banks, financial institutions or governments, and it can be used by anyone globally.
Bitcoin has a limited supply, and there will never be more than 21 million bitcoins in circulation. Some believe this makes it a good hedge against inflation.
Sending Bitcoin is very quick, and often very low-cost, cheaper than the fees you might pay when transferring money through normal payment networks.
Bitcoin can be used anonymously online, and it is slowly becoming possible to use bitcoin as real money, to pay for things in shops, restaurants etc.
You probably store your money in a bank account.
But bitcoin works a bit differently, typically being stored in a bitcoin wallet.
A bitcoin wallet is a digital wallet that you can use to store, send and receive bitcoins.
This wallet stores all of the encrypted codes that can then be used to manage your bitcoins.
There are lots of different types of bitcoin wallet out there. So if you’re thinking about buying bitcoin, it’s important to look at bitcoin wallets reviewed to understand what might be most suitable.
Bitcoin is a highly speculative asset and it’s price is very volatile.
It should not be considered without lots of research and a suitable risk tolerance.
If you’re looking for a safer, more consistent way of making money online, then Matched Betting could be perfect for you.
We’ve helped over 150,000 people make money online with Matched Betting.