Bitcoin has been gaining a lot of attention lately and many people are still unaware of Bitcoin. Bitcoin is a cryptocurrency or electronic money that was created in 2009 by Satoshi Nakamoto, who is an unknown inventor that no one knows. Bitcoin has become popular for its completely anonymous transactions and is accepted at over 100,000 sites online which include casinos, hotels, bookstores, etc.For the bitcoin app click here.
Use of Bitcoin
Bitcoins can be used to make purchases anonymously and because Bitcoin accounts cannot be frozen by government authorities like banks when you do something illegal with your Bitcoin account like buy drugs online (Stanton), this makes Bitcoin even more attractive. There will only ever exist 21 million Bitcoins and they cannot be forged because every time someone spends a Bitcoin it creates a digital signature that proves it was spent and prevents it from being used again (Schindler). Bitcoin is a completely decentralised currency meaning no bank or government controls Bitcoin, Bitcoin is controlled by all Bitcoin users worldwide. Bitcoin’s value has been increasing since its creation because more people are accepting Bitcoin as a form of payment.
Up to this point just means I have given you background information on Bitcoin and now want to talk about why Bitcoin’s value increases over time because there are only 21 million Bitcoins ever created. The reason for the increased value is because once all 21 million Bitcoins have been mined then no new Bitcoins will be created and those who own them will profit from the lack of supply which causes increased demand and higher prices (Stanton). This can help explain Bitcoin’s value increase over time. Bitcoin is a cryptocurrency that will be around for a very long time and Bitcoin has many advantages to using Bitcoin as a currency because it is anonymous, decentralised, and Bitcoin profits you when there are only 21 million Bitcoins.
Bitcoin has been gaining much attention recently from news articles to people who have heard about Bitcoin but still don’t know what Bitcoin is or how it works. Bitcoin was created in 2009 by Satoshi Nakamoto making it 8 years old now and Bitcoin continues to become more popular with the increased appearance of sites online that accept Bitcoin as a form of payment which increases demand. All these factors can explain why Bitcoin continues its upward trend in price over time.
Bitcoin is a ‘cryptocurrency‘ that has been growing steadily over the last few years. Bitcoin is now at an all-time high, and some analysts predict it will continue to grow. According to Bitcoin Charts, Bitcoin was valued at $13.54 on January 14th, 2009 and as of 12 December 2013 it was valued at $1163 per bitcoin (XBT). As we can see from the graph below, Bitcoin has shown steady growth over the past 5 years – or more precisely – from Bitcoin’s inception in 2009 until December 2013.
This steady growth in value could be because people are slowly but surely starting to accept Bitcoin as a valid currency, both online and offline. Online retailers such as Dell, Expedia, TigerDirect, Microsoft, and Overstock have started accepting Bitcoin as a valid payment method.
It is also possible that Bitcoin’s value has increased simply because Bitcoin is harder to mine (see Bitcoin Mining ). When Bitcoin first came out, it was easy to mine coins through Bitcoin Mining on your computer. However, as more Bitcoins were mined the difficulty of mining the coins increased significantly. As we can see from the graph below which shows Bitcoin Mining Hash Rate and Data Packets Found (Bitcoinwatch), Bitcoin mining started off fairly quickly but became much slower over time. This meant that those who wanted to keep on mining had to invest large amounts of money into their computers in order for them to be able to continue mining new coins.
As such, many miners found Bitcoin mining too expensive so stopped mining Bitcoin. This increased the scarcity of Bitcoin, causing Bitcoin’s price to rise.
However, there are many other factors that could have caused Bitcoin’s value to increase over time since Bitcoin was first introduced. For example, one factor could be that Bitcoin has become more widely known around the world, or perhaps Bitcoin offers more advantages than traditional currencies do.
It is also possible that Bitcoin will continue to grow in value for a while yet because it is considered “digital gold”. Many people view it as an investment that can make you profit if you invest now while the price of Bitcoin is low and sell when the price of Bitcoin becomes higher due to its rapidly increasing demand.
Chris Mcdonald has been the lead news writer at complete connection. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. Chris is also an author of tech blog Area19delegate. He likes spending his time with family, studying martial arts and plucking fat bass guitar strings.