Bitcoin is the world’s first decentralized digital currency that operates without a central authority and has a scarce supply. Bitcoin allows users to own their own money and exchange it over a peer-to-peer network.
Bitcoin can be purchased in a variety of ways using several different payment methods. Brokerages, exchanges, and peer-to-peer networks offer trade-offs between liquidity, security, and privacy.
Sending and receiving bitcoin is getting easier each year as new wallets and services come to the fore to provide market services for Bitcoin’s growing economy. You can also use your brokerage to send and receive bitcoin.
Bitcoin wallets store and protect the public and private keys, allowing you to send, receive, and store bitcoin. Bitcoin wallets can come in the form of software or hardware devices.
Learn what schemes exist to steal bitcoin, how to spot them, and how to protect yourself from becoming a victim. Recognizing these scams will help you avoid them and safeguard your bitcoin.
Money is a tool that helps people store value and conduct exchange. Some types of money are better forms of money than others. Dominant monies used in human history have been replaced when a better type of money was implemented.
Backing a currency is a method to control the value of its price by connecting it to another commodity. Bitcoin is not backed by any other asset. Gold and fiat currencies are not backed by anything either.
The Bitcoin price is determined through supply and demand. Because the market cap of bitcoin is small relative to the market capitalization of other currencies, small changes in demand or supply can produce price volatility greater than that of fiat currencies with theoretically unlimited supply.
The Double Spend problem describes the difficulty of ensuring digital money is not easily duplicated. Bitcoin offers a trustless solution to the double spend problem, and third parties such as banks attempt to solve it as well.
Bitcoin is a unique asset that can meet the specific needs and goals of an investor who is looking for diversification, flexibility, and increased purchasing power in the long-term.
As a new phenomenon, Bitcoin faces much skepticism. However, Bitcoin’s database, the blockchain, is practically impervious to attack or corruption. Individuals can still lose their bitcoin in a variety of ways.