I am sure you are here because you want to know why Bitcoin is a mystery? Bitcoin is a cryptocurrency and a worldwide payment system.
It’s also the first decentralized digital currency because the entire system works without a central bank.
There is no single administrator, and all the transactions take place directly between users, without an intermediary.
Bitcoin About and How it Works
It was designed and created by an unknown person named Satoshi Nakamoto back in 2008.
He designed Bitcoin and created the original reference implementation. This is one reason why bitcoin is a mystery.
As part of this implementation, he devised the first blockchain database. Currently, he is assumed to own $16.5 billion in bitcoins, and back in 2015, he was nominated for a Nobel Prize in Economic Sciences.
Eight years ago, you could only buy a couple of pizzas if you had 10,000 bitcoins.
However, thanks to the surge in value in 2017, with 10,000 bitcoins you could become a millionaire these days. This is as a result of mass adoption and the recommendation of Bitcoin by the rich and famous.
The original way you were able to get your hands on some bitcoin was through mining.
This is a record-keeping service that is done through the use of computer processing power: a person has to use a personal computer to solve very complex math puzzles, thus creating a bitcoin.
Currently, a new block is solved every 10 minutes, mostly thanks to large mining pools that work together.
However, this was the way to get BTC back in the days when bitcoin and other cryptocurrencies were just in their infancy. Nowadays, you can also acquire some bitcoins via transfers, or you can buy them on an exchange.
There are over 67 Bitcoin marketplaces that exchange various cryptocurrencies, and there is a specific one that allows people to buy and sell bitcoins quickly in your local environment.
Currently, Coinbase is the leading exchange, followed by Bitstamp and Bitfinex.
After you acquire some bitcoins, since they are a cryptocurrency, they are stored in a secure ‘digital wallet.’
This wallet exists either in a cloud storage system or on a user’s computer.
It is some virtual bank account that allows the user to send or receive bitcoins, pay for goods, play online poker, or just save up the money.
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67 Insane Facts Why Bitcoin is a Mystery
The above is just scratching the surface of Bitcoin and its features read through the infographic below to see over 67 reasons why bitcoin is a mystery that has come to stay.
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While I think bitcoin might have some practical use in the future, right now it’s not really worth investing in I think.
The prices are always fluctuating so much that there’s now way you can use this to buy real world items, and it’s more of thing to buy and sell like stocks in hopes you can gain a profit.
I’m sure before the year is over with it will go back high in price, and everyone will be rushing buy it again In hopes to get rich.
It is indeed a game of margin. You buy when the price is up and sell when it is low. Or you purchase noe and sell later in the future. Ensure you do not put all your egg in one basket. Only invest those money you can loose. That is always my advice.
Hi John! Great website with a wealth of information all around cryptocurrency! I was very interested to learn more about bitcoin and stumbled onto your site. Now I know how it works and about the investment.
You’ve got nice “fact” photos and the video was helpful. I bookmarked it for quick referral. Thanks for providing such a educational site!
Hi H. Erin Nelson,
Thanks for the great feed back. I am happy knowing that i am adding value to my audience.
Have a great life.
Bitcoin and creptocurrency again! Honestly speaking i am still very confuse as to how this works. its a Bitcoin a physical currency…if i were to convert it to a $ how much will it be. some people say it is money that exist only in digital systems. i am confused is it derived from mining ?
please tell me a little more
Bitcoin is a digital currency. Just like having your money in a bank and you gave them instruction to transfer to another person in another bank. While the transfe4 is taken place you can only know tha5 your money is been transfer. That is digital Monet I.e money is been transfer electronically. The sMe thing applies to Bitcoin. You can can’t seen the money physically
Is it really sustainable especially if it blows up even more?
Life indeed is a risk. A lot of people are not online because of the are afraid to be on the internet, not to talk of them doing business online. It is riskier not to take a reasonable risk. When investing in Bitcoin, you ensure you invest only the money you can lose. Otherwise stay off the high way. It is dangerous to say on the high way doing nothing.