If you haven’t heard of Bitcoin over the last couple of years you must have been living under a rock. Those lucky enough to get on board early enough have made a considerable amount of money from it and there still looks like there is room for more to be made.
While a lot of us will have heard about the developments we might not be exactly sure what it is and how it works.
Here is a, very simplified, guide to understanding a little bit more about Bitcoin and how it looks like it is here to stay.
First of all Bitcoin is a digital currency. Unlike money as we know it is not a physical currency and isn’t controlled by banks.
To ensure Bitcoin is legitimate and safe and that people aren’t just out there making it up Bitcoin uses a huge digital ledger. Instead of one person or group keeping track of every transaction, by having a public ledger that regularly updates it is impossible for any one person or group to manipulate the figures or they just wouldn’t match up.
Setting up an account with one of the digital currency exchanges is quick and easy and similar to setting up a Paypal account. With Digital Banking and online trade becoming more and more a part of everyday life it is only a matter of time before Bitcoin becomes a big part of that.
There are more than 100,000 merchants that currently accept Bitcoin and if things continue to follow the current trend it is only a matter of time before major merchants start to take notice.
With more cryptocurrencies sprouting on what appears to be a daily basis there will definitely be some fingers being burnt. Fluctuating markets can make it quite risky for investment although Bitcoin being the ‘big name’ gives them the advantage.
Recent news included the artist 50 Cent accidentally becoming a Bitcoin millionaire. He became one of the first musicians to allow fans to buy his album, 2014’s Animal Ambition, by using Bitcoin. In the years that passed the 700 Bitcoins he made for his album have rocketed in value to over $7 million.
If you are thinking about investing in Bitcoin or finding out a bit more about harvesting it looks like it could be a profitable venture. There will obviously be an initial outlay so if you are feeling brave you might want to look at getting on board with one of the lesser known cryptocurrencies and you get end up like 50 Cent.