Bitcoin is in the news.
In November 2008, Satoshi Nakamoto released a white paper that started "Commerce on the Internet has actually pertained to rely nearly solely on banks working as relied on 3rd parties to process electronic payments."
The option, as Nakamoto saw it, was an electronic cash system "based upon cryptographic proof instead of trust, enabling any two ready celebrations to negotiate directly with each other without the need for a trusted third party."
The 8-page white paper then went on to explain the electronic payment system that might serve this purpose.
The coins would be made from digital signatures that would be "spent" on a peer-to-peer network. This is how bitcoin was produced.
When you purchase or sell, there is a transaction recorded in the blockchain.
Your identity is not part of that record so that part is anonymous.
The actual transaction is anonymous from that viewpoint however it is not private.
There is a public journal the blockchain that is open to the whole world.
Anyone who wants to explore it can go through every deal from day one to the last couple of minutes.
The FBI has made it clear that they have the technology to follow the bitcoin trail.
Another thing, in spite of the images displayed in stories about it, such as a pile of gold coins, you can not hold the cryptocurrency in your hand.
With your debit card, the cash remains in your checking account since you transferred a check or money or your employer transferred your paycheck.
The bank serves as a 3rd party, sitting between you and where your cash comes from.
If your company paid you in cryptocurrency, the deposit would come straight from the company to your bitcoin wallet.
There are no bank charges, and there is no danger of devaluation.
The rate may differ, depending upon where you buy it. Some exchanges might increase their cost so they can make a tiny profit on each sale.
What tosses individuals off is that they believe they need to purchase a full bitcoin which is a lot of money to lay out if you are new to the idea of digital currency and afraid of losing your money.
For twenty bucks, you can purchase a portion of a BTC.
If the rate did double in the next four months as some predictors suggest, your fraction would be worth twice what you paid for it.
We learn from our mistakes. In the world of bitcoin, there have been some real mistakes.
Anyone who has ever lost or misplaced a password can relate to the common problem of cryptocurrency owners who have lost their private key.
Store a copy of your private key in several safe digital places, because of course, once someone has access to your keys, they can have your coin.
In 2017, the estimate is that 25% of all the bitcoin mined has been lost.
Sometimes it is a matter of a lost key, rendering the bitcoins locked away, never to be recovered.
People are looking for a good and fast way to grow their money. BTC seems to be the answer to the big question, where should you invest?
There is a limit to the number of bitcoins available so as more people hop on the bitcoin wagon, the value of each bitcoin increases.
It is straightforward to use. Once you join the cryptocurrency organization, you can pay out or receive bitcoins so easy.
Transactions are private, peer to peer, and no one can swoop in and freeze your account.
If you purchase cryptocurrency and keep it in your wallet, it is very easy to convert it into cash or withdraw it to your bank account.
An exchange such as coinbase is connected to your bank account and that is one way to withdraw money into your bank account.