If you landed on this article, then the Bitcoin fever has finally caught you off guard. You must be really curious right now, and your top question is: Why are people jumping aboard the Bitcoin bandwagon? So, before you start freaking out, here are five things that you must know about it:
- Bitcoin is computer coded.
Bitcoin is a digital currency which uses cryptography as its fundamental security system. In layman’s term, it’s made of advanced programming codes that make it difficult for hackers to impregnate. Since it’s digital, it can only be used in online transactions such as online buying and transferring.
- It’s only 12 years old.
In October 31, 2008, Bitcoin first appeared in the internet as the main concept of a research paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.” Three months later, the first Bitcoin was released, and the first Bitcoin mining took place. It eventually resulted in the Bitcoin bandwagon effect.
- Its creator remains anonymous.
As far as the internet world knows, Bitcoin’s creator is a man who hides himself in a pseudonym Satoshi Nakamoto. However until now, his real identity remains a mystery despite the countless attempts of digital nomads to trace him. According to reports, Nakamoto wanted to create a decentralized currency which is uncontrollable by any bank, but solely by whoever owns it at the moment. He even designed Bitcoin’s transactions to need no middlemen and only minimal transaction fees.
- Its value fluctuation is insane.
Contrary to regular money which is subject to inflation, Bitcoin value is rather more complicated and volatile. According to CoinDesk and CoinMarketCap, Bitcoin value has been on an insane climb since April 2017 reaching an all-time high of over $4,500 in August.
- It’s not infinite.
Yes, you heard it right. There is only a limited supply of Bitcoin circulating around the internet: a total of 21 million, to be exact. Synonymous to gold, it can be mined (digitally), and it’s doomed to run out sooner or later which is why the Bitcoin bandwagon is getting more crowded nowadays. However, even if the last piece of Bitcoin is mined, it will still continue to exist like gold. Its intrinsic value will also still depend on how people priced it to be.