Bitcoin, the first digital currency, garnered quite the attention, especially after 2013. It was when its market capitalization increased from $13.30 to $770 on the 1st of January 2014. That said, Bitcoin is more than a cryptocurrency; it is the internet money protocol that can be used for smart contracts, smart property, financial contracts, etc. It’s a risky concept that has so far paid off. It represents a fundamental shift in global monetary policy. For the first time, government and monetary policy are separate. Bitcoin is a decentralized trust network, a trusted network that can provide a basis for so much more than just currencies. This is probably the most important reason which makes bitcoin and the associated blockchain technology so hot, and everybody wants to get something out of it.
Background
With the increasingly widespread adoption of Bitcoin, the cryptocurrency landscape has also evolved as new cryptos are introduced into the market. Some of these cryptos use similar blockchain technology or record transactions on a public ledger, like Bitcoin.
Other cryptocurrencies like XRP and ETH (Ether) use completely different protocols like the Ripple network and the Ethereum network respectively. Nevertheless, some cryptocurrencies are a source-code fork of Bitcoin like Litecoin (LTC)
Bitcoin has the highest market cap when compared to the other cryptocurrencies. It is a true currency that can be exchanged for fiat money and vice-versa; Bitcoin is a valuable digital asset for speculative investments. It is, for this reason, important to understand Bitcoin at its core.
What is Bitcoin?
Bitcoin is believed to be the first open-source, decentralized cryptocurrency or digital coin. Unlike the traditional currency, Bitcoin is not governed/controlled by a single authority like governments, financial institutions, banks, etc.
Bitcoin was developed in 2008 and released in 2009 by a person or a group pseudonymously referred to as Satoshi Nakamoto. Bitcoin’s underlying technology, the blockchain network, was the main reason for its rise to fame soon after its inception.
History of Bitcoin
In terms of US dollars, Bitcoin was valued at virtually nothing in 2009. However, it slowly rose in terms of market cap, reaching an all-time high at $50000 by 16th February 2021. Bitcoin is the most liquid, well-known, and oldest cryptocurrency, which is soon becoming a hedge against fiat currency like USD, EUR, etc.
The first reported use of Bitcoin as a currency occurred in 2010 when Laszlo Hanyecz, a programmer, paid 10000 BTC for two pizzas.
Whether it is the incorporation of Bitcoin and Bitcoin Cash as one of the payment options by PayPal or the use of Bitcoin for online payments for services and products, Bitcoin has experienced exponential growth in terms of usage and mainstream adoption.
How to Get Bitcoin?
Earlier, before the onset of cryptocurrency exchanges, buying Bitcoin was difficult. Bitcoin mining, the process of creating new bitcoins by verifying and confirming Bitcoin transactions, was how new Bitcoins were acquired. Needless to say, the advent of cryptocurrency exchanges made getting Bitcoin easy.
Cryptocurrency exchanges are of different types with varied features. Choosing the right exchange that best suits the user’s requirement is vital. Many people consider it a best practice to opt for a cryptocurrency exchange that enables them to withdraw their crypto funds into their wallets.
Some exchanges facilitate cold storage or offline storage of crypto funds. Thus, depending on one’s need, they can choose an exchange that caters to their specific requirements.
Here’s how you can begin your Bitcoin journey:
Step 1: Sign up with a Cryptocurrency Exchange
Step 2: Establish a payment system by connecting your exchange user account with a suitable payment option
Step 3: Place an order to buy Bitcoin or other cryptocurrencies
Step 4: Safely store the cryptocurrencies or Bitcoin in your e-wallet.
What Can You Do with Bitcoin?
The scope or potential of Bitcoin is huge. It is not only a valuable asset but also an active currency, which is at par with the most high-valued fiat currency like EUR, USD, to name a few.
Bitcoin traders and investors make the most of currency as an asset for speculative investment. Bitcoin is believed to be an important asset for diversifying one’s portfolio. You can also make a profit from Bitcoin by using a Bitcoin Robot trading platform. It is an algorithmic platform which only focuses on making a profit from Bitcoin. Check out Bitcoin Loophole to know more about this innovative platform.
Is Bitcoin Safe?
Although a highly volatile asset, Bitcoin is one of the safest cryptos to invest in. Backed by blockchain technology, Bitcoin transactions are secure, ensuring the utmost transparency.
Final Thoughts
Bitcoin, the first and the most popular cryptocurrency, is growing in its value with its large-scale adoption globally. Both as a speculative investment asset and an online payment option, Bitcoin is by far the most secure and safe virtual currency.
