In the last decade, many people have asked, “what is Bitcoin?” No other technology has had a bigger impact in the world than this cryptocurrency.
Virtual, non-censorable in little over a decade, cryptocurrencies have grown from being some elusive concept better suited for technophiles, to being mainstream and used all over the world.
Developed by the elusive Satoshi Nakamoto in 2008, Bitcoin is the pioneering digital currency that is based on blockchain technology. The safety and security of the currency is ensured through cryptography, hence it is also called cryptocurrency.
What is Bitcoin?
The technology that powers cryptocurrencies, blockchain, is basically a decentralized ledger that is distributed through nodes and miners.
Each node or miner holds a complete record of all the transactions that have ever occurred on the network.
Miners perform complex calculations to verify all Bitcoins being sent and received and mining new ones. This creates a robust ecosystem in which there is no possibility that some malicious person or a group of people will be able to hack or steal the digital currency.
Is Bitcoin real?
Unlike legacy and current currencies, Bitcoin is not backed or owned by any country.
There is a lot of controversy within the financial and economical domain between experts on the definition and usage of it, and some governments either want to ban Bitcoin, or even create their own cryptocurrencies, known as CBDCs.
The fact remains, however, that it is real and is being used by people all over the world. From using it as a means of savings to purchasing everyday items such as groceries. From restaurants to online delivery services, firms globally have started to accept is as a payment option.
One of the most inherent issues with Bitcoin (and for all cryptocurrencies) is that it has a very volatile price.
Whereas a fraction of a percentage change in value of a traditional currency is pretty normal, cryptocurrencies can fluctuate in the double digits in a day. You can see the current Bitcoin price on our Cryptocurrency Prices page.
In March this 2020, Bitcoin slumped by nearly 80% in less than a day, only to recover nearly all of its value in the coming week.
The high fluctuation is due to a number of factors, but mostly it is tied down to two.
First, where financial markets close at the end of the day, trading of cryptocurrencies continues throughout the night.
With thousands of crypto exchanges across the globe letting people sell and buy the asset, it is a 24/7 trading option, continuing even during the weekends and holidays.
Secondly, Bitcoin is not native to a country so its value is not affected by just one country’s economic and political situation.
If, for example, China decides to ban Bitcoin, it will have an impact globally, creating a slump in the price that will also have its affects in Europe and USA.
How can I get free Bitcoins?
Now that you know what Bitcoin is, most people ask where they can get some for themselves!
There are hundreds of free Bitcoin faucets available, where you get free satoshis (a fraction of a Bitcoin) at regular intervals. All you need to do is solve a Captcha or see some ads, and you’ll get free Bitcoins in your wallet!
Check them out!