Bitcoin is a hot topic these days. There have been a lot of discussion or debate among investors, entrepreneurs, or even among tech savvy among us on what it is really, why I should care, and where it is headed.
For the uninitiated, Bitcoin is a digital currency (and today, there are more than 800 Bitcoin) that is not controlled by a central autority, such as a government agency or bank.
So-called “miners” created Bitcoin and they use computers and specialized hardware to perform the following:
- Process transactions
- Secure Bitcoin’s network
- Collect bitcoins in exchange
Is it even secure? Supporters of Bitcoin claim it allows for more secure transactions over the Internet. Thanks to a technology called “blockchain” that records cryptocurrency transactions chronologically in a public digital ledger.
Bitcoin is just a kind of cryptocurrency and it is said to be only eight and a half years old, but having said so, it boasts of being the oldest and most highly valued of its kind out there.
Amid its rocky albeit controversial history, it also has attracted some high-profile supporters.
Here goes some tidbits about Bitcoin I thought you might need the next time you are asked about it and invited to invest into cryptocurrency, particularly this digital currency called Bitcoin.
1. The Origin Story of Bitcoin
A cryptocurrency mailing list published the proof in 2009. After Nakamoto left his project in 2010 and then disappeared, other developers picked up his work. It was in January 3 when Nakamoto mined the first 50 units of the currency that supporters dubbed this moment as Bitcoin’s birthday.
(For more questions on this, click here.)
2. First Bitcoin Transaction
On May 22, 2010, a programmer, Laszlo Hanyecz said he successfully traded 10,000 bitcoins for pizza! As of Nov. 28, 2017, 10,000 bitcoins are worth about $99 million.
3. You Can Buy Stuff Using Bitcoins
Don’t worry, there are aleady large businesses who accept the cryptocurrency. Those who do include Overstock.com, Expedia, Newegg, and Dish.
4. Bitcoin’s Creator is … Remains A Secret
It is one of the key mysteries of Bitcoin because for so long – there has never been an answer as to who really is its creator or creators. There have been a lot of speculations and theories as who really created the cryptocurrency.
There is one name who almost always props up whenever this question is asked – the author of the original paper describing Bitcoin – Dorian Satoshi Nakamoto, which Newsweek in 2014 claimed to have found. But Nakamoto has denied it.
But who is Craig Wright, an Australian entrepreneur, who just claimed in 2015 that he is the Bitcoin creator everyone’s looking for in years. But not so quick because Wright’s still have to produce the evidence to support his claim.
So back to Nakamoto, and whoever he is must be filthy rich right now as the creator is estimated to have mined a million bitcoins in the currency’s early days. But that person is yet to come out to say they are Nakamoto.
5. What Billionaires’ Have to Say
World-famous investor Warren Buffett has given his take on bitcoin and he’s not solid for the currency. He warned investors in a CNBC interview to “Stay away from it. It’s a mirage, basically. Buffett further explained that “The idea that it has some huge intrinsic value is a joke in my view.”
An even stronger words about Bitcoin came from another billionnaire investor, Jamie Dimon, the chief executive of JP Morgan Chase. He was quoted to have said:
“You can’t have a business where people are goin to invent a currency out of thin air. It won’t end well … someone is going to get killed and then the government is going to come down on it.”
Like Mark Cuban, not all billionnaires are against Bitcon. He once said that its value is inflated, yet he recently invested in a venture capital fund that backs cryptocurrency.
Virgin Group’s Richard Branson, however, was bullish on it.
(Photo source: Pixabay.com; Source: Entrepreneur.com)
To be continued …