We’ve all heard of the cryptocurrency Bitcoin, but how much do we actually know about it? To make your life easier, in this post we’re sharing all the knowledge around Bitcoin so you can better understand the media frenzy around cryptocurrencies.
What is Bitcoin?
It’s a virtual currency. In 2009, an anonymous computer genius who goes by the name of
Satoshi Nakamoto created Bitcoin. They’re created using computer code and the total value of Bitcoin to date is said to be over £185 billion. This is why it’s such a hot topic right now!
Bitcoin is beginning to be accepted worldwide as a form of payment. To keep track of, store and spend this digital money, there are virtual websites available online such as Blockchain or you can purchase Bitcoin from a special Bitcoin ATM or through online currency exchange websites.
Bitcoins are not printable and users who want to pay with Bitcoin don’t even need to give their name.
What similarities and differences does Bitcoin have with other cryptocurrencies?
Bitcoin is one of the most accessible and recognised cryptocurrencies with more places to buy and sell than any other crypto. The platforms used to buy and sell cryptocurrencies are known as exchanges, and to be able to function, they need merchants (people to buy and sell) and hardware/software support systems (the tools that make it possible to host the platform).
Bitcoin in a flash;
- It’s been proven as more secure than lesser known, younger currencies.
- It has a large user base – lots of people buy and sell it.
- Bitcoin has the largest developed network of users and platforms. This is called an ecosystem which has more software than the other currencies.
- It is easy to convert Bitcoin into actual cash on-demand without issues. This mean it’s more liquid compared to the other digital currencies.
Interesting facts about Bitcoin
- The first thing purchased using Bitcoin was pizza. The transaction value was $25 which equates to 10,000 Bitcoins. This transaction was made in 2009 between Hal Finney and Satoshi.
- One of the largest Bitcoin wallets is owned by the FBI. When Silk Road (an online black market website) was shut down by the FBI, they became the owners of their assets.
Therefore, the FBI own approximately $120 million of Bitcoin making them one of the
world’s richest Bitcoin owners.
- Transfers are irreversible. There are no second chances when using Bitcoin and no transactions can be reversed.
- They are limited in number. You may have heard of Bitcoin mining (this refers to how Bitcoins are digitally created) which leads us to question if they are infinite. The answer is no – a predefined schedule has limited the number of Bitcoins that can be created.
- Fees for sending money are almost non existent. The fees related to transferring Bitcoins are small, if not zero. Additionally, transfers can be made within 10 minutes which is the same as an instant bank transfer.
Download the TransferGo app
Soon TransferGo customers will be able to buy or sell the likes of Bitcoin, Bitcoin Cash, XRP, Ethereum and Litecoin. We’re sure this new service will be in high demand. Make sure you’re one of the first to know when it’s here. Simply download our iOS app to register your interest and see the live prices feature now.