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Bitcoin

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Bitcoin. Sound familiar? You have been hearing this word over and over again. Yet, you have no idea what it is? Well, we’re here to tell you. What is bitcoin?

Bitcoin allows people to send and receive money over the internet, anonymously. Bitcoin is not a physical coin, but a cryptocurrency, a virtual currency that the government cannot regulate. Bitcoin value depends on the number of investments and people purchasing it, which is why it varies dramatically day to day. As of January 25, 2018, the price of 1 Bitcoin is $10930.09.

It is unclear who founded Bitcoin, but Satoshi Nakamoto is the name used by the unknown person(s) who supposedly created it in January 2009. Bitcoins are created by “bitcoin mining” in computers, using its CPU, or the brains of the computer. A powerful computer with high specs can mine more “bitcoins” in a shorter period of time, while a slower computer takes more time to mine a bitcoin. Some apps allow for purchases of Bitcoin to be cashed into a PayPal account, like CoinBank. Since Bitcoin’s value changes so often, investors can quickly lose or make money, so it is a gamble. Fractions of Bitcoin can be purchased at a cheaper price. you can buy a fraction of it for a cheaper price. For example, 0.0091 of a bitcoin for can be sold for $100,

If someone invested $100 in Bitcoin 7 years ago, today they would have $28,341,266. Bitcoin has exploded in price in the past year, but it is on a quick nosedive, as its price has dropped from $21,000 a bitcoin to a low $11,000. Those who purchased Bitcoin early on, could be in financial trouble. For example, five months ago a man purchased $325,000 worth of bitcoin and mortgaged his house in the process, with the recent decline in price could this be $325,000 lost?

So, are bitcoins worth the investment?  It’s all up to how much someone is willing to risk. Some believe that the price of bitcoin will skyrocket while others believe it will quickly crash.

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