Bitcoin is the leading Cryptocurency and has the largest share in the digitial currencies trading. Developed as an alternative to the real world currency, Bitcoin is a peer-to-peer transaction system in which transactions are verified through the members in the network.
The unique aspect of Bitcoin is that it is decentralized and is independent of any one country or financial body. All transactions in Bitcoin network are anonymous but are stored in a public ledger called the Blockchain.
As per the inventors of the system, the total Bitcoin issued are limited to 21 million and is determined by the network. The value is increasing at an unimaginable pace from zero dollars at its inception in 2009 to $8000 and growing in 2017. Bitcoin investment are liquid but are not tangible. Although other currencies exist, Bitcoin Buyers must ensure the stability of the systems before investing.
Bitcoin Pros and Cons
Bitcoin can be used internationally for purchasing goods and services without any additional charges. Some countries allow Bitcoin transactions while some have made Bitcoin as official currency. The rules of how Bitcoin is accepted or taxed are changing every day. The network is seeing billions of trading and is growing at a rapid pace. Any Bitcoin investment is taxable and the IRS issued guidelines for investment.
Bitcoin is usually mined or bought from the exchanges. Bitcoin Buyers can create the accounts in the exchanges and buy Bitcoin through normal currency. The exchanges follow Know-your-Customer and anti-money laundering policies and hence your investment is safe. Exchanges operate on their algorithms and have Bitcoin matching systems.
Bitcoin is also traded through the Over-The-Counter markets under different ticker symbols such as GBTC. Bitcoin Buyers also buy from different local sellers or vending machines. Bitcoin exchanges are the safe way to buy the Bitcoin as the wallets can be tracked using smart phone applications.
However, the exchanges charge fees for every transaction which may add up significantly and without the buyer being aware of it. The exchanges also lock the transactions during a software update in the Bitcoin system or during the SegWit forks. The overall network is also splitting due to the differences among the users. New currencies are being formed and the Bitcoin Buyers are getting confused.
Bitcoin Buyers must notice that the new crypto currencies rely a lot on the original network and the changes are interdependent. As an established network, Bitcoin has a lot of future and is the most trending in the Cryptocurrency world.
Mining is a large scale industry for verifying transactions and generating Bitcoin. Special hardware and software are used for mining. Alternative energy sources such as solar are being used to cater to the tons of electricity required by the mining hardware.
Bitcoin Price Trends
Bitcoin price trends are entirely dependent on the network and transactions. Bitcoin has seen several ups and downs since inception but its tremendous growth is in 2017. Bitcoin Buyers are buying additional Bitcoin as they anticipate further growth in the future.
Bitcoin is not dependent on one country or exchange so it is operating round the clock and the transactions are processed around the world. Millionaires are buying off islands just to faciliate the Bitcoin mining.
Bitcoin Buyers can spend the satoshis at the nearest accepting retail stores or online shopping. All purchases are subject to sales tax and other taxes.