Bitcoin is a digital currency that comes from the hacking scene; It has been in circulation since 2009. It is impossible to say exactly who invented it. If you Google the inventor of Bitcoins on the web, you will find the information that the creator of Bitcoin is a computer specialist known by the Japanese pseudonym Satoshi Nakamoto . But no one knows who is really behind it.
Bitcoins are not issued by any bank, but by a large international community. The monetary system is designed in such a way that a total of only 21 million bitcoins can be in circulation, currently around 18 million bitcoins are traded
worldwide (almost 19).
This artificial scarcity of virtual currency is intended to protect consumers primarily from inflation. The peculiar thing about Bitcoins is that users can create them themselves on the PC by solving extremely complex mathematical formulas.
This process is called "mining", since in earlier times gold prospectors searched the ground for gold. However, this mining is of little interest to laymen or Bitcoin beginners, because this is only possible with PCs with high computing power, powerful graphics cards or a special circuit (Bitcoin ASIC). A variant of this is a mining pool, which you can join as an investor .
Bitcoins benefits
Bitcoins are a decentralized means of payment that can be used around the world. It can be used from any computer. Another advantage is the anonymity of the transfers. But to avoid fraud, transactions can be traced if necessary.
Other advantages of bitcoins:
Transaction fees for foreign transfers are very low (usually less than 1 cent or completely free), as Bitcoins are transferred from person to person without the intervention of a bank.
Bitcoins are a legal currency online.
The number of online stores, shops and services where you can pay with Bitcoins is increasing.
Bitcoins are protected from inflation by the 21 million quantity restriction and therefore have properties comparable to those of the precious metals gold and silver.
Buying Bitcoins is quite simple.
There is also a physical Bitcoin coin called the Casascius Coin. On the reverse of the coin, a private key is hidden under a counterfeit-proof hologram label.
Disadvantages of bitcoins
But where there are advantages, there are always disadvantages. It is no different with bitcoins. A major weak point is undoubtedly that the entire monetary system is still quite insecure and experimentally structured. The exchange rate of Bitcoin fluctuates extremely. In a few days it can go all the way down and then back off very quickly.
Other disadvantages of bitcoins:
Although the number of stores and service providers that accept Bitcoins as a means of payment continues to grow, there are still not many. Something has yet to change, and it is very likely that it will.
Anyone who owns virtual bitcoins must save them on their own computer. And that's not so easy: you need a virus-free PC and you should also know a lot about computer security so that virtual currencies are not stolen. In addition to a local program on the computer, the so-called digital wallet, you can also use trusted online services to store your bitcoins.
What do the experts say about virtual currency bitcoins?
I looked for this on the internet and found warnings against large investments in Bitcoins, especially if you are still a complete beginner to Bitcoin, like me, for example. The digital currency has hit some highs in recent years, now exceeding $ 20,000. But how sustainable is Bitcoin?
Many experts warn of a speculative bubble that can burst quickly. The result would be that many Bitcoin investors have big losses and don't get the high profits they want.
Ultimately, it is primarily the players who exorbitantly increase the value of Bitcoin. It is likely that one of the reasons for the many purchases of Bitcoin is partly because of the stories of people who have become millionaires with Bitcoin.
In 2009, a Norwegian invested 150 kronor (the equivalent of 19 euros) to buy 5,000 bitcoins. The young man was one of the first investors, because the Bitcoin network was only created in 2009.
He had forgotten about the investment until increased press coverage of the coin reminded him of his purchase. In the four years or so, his 5,000 Bitcoins were worth a good five million crowns (roughly 615,000 euros).
The search for investments that promise attractive returns
In addition to the numerous skeptics, there is also the other side that awaits a golden future for the Bitcoin currency. It certainly has many advantages, the barely significant transaction fee for overseas transfers alone can hardly be beaten by other providers.
The number of users is continuously increasing, the more users use Bitcoin, the more stable the monetary system should be. However, there are unpredictable events in the room that could jeopardize the existence of Bitcoin, such as the ban on the exchange of Bitcoin in various countries.
So if you are interested in this really exciting topic and want to delve deeper into the matter, you need to keep an eye out for the latest reports on the development of Bitcoin. In any case, it is not a problem on the Internet to constantly learn something new about Bitcoins.