What is Bitcoin?

 

I

Introduction

Bitcoin is a cryptocurrency, considered the most famous coin out there, used for transactions. Bitcoin has been highly publicized due to the highs and lows of its run throughout its 13-year history. From reaching $64,400 last November to hovering over just $19,000, you can see why there has been so much speculation on its long-term bottom line. Not reaching $1,000 per bitcoin until 2017, the four-year growth was exponential for Bitcoin, but this past year has shown the harsh reality of how volatile it is.

What is Bitcoin?

Bitcoin is a decentralized currency that can be used in transactions or as an investment, as shown by the price changes stated earlier. Since bitcoin is decentralized, there is no intermediary such as a bank or government controlling bitcoin. There is, however, a finite amount of Bitcoin to be used. That number is capped at 21 million coins, and 18 million have already been mined. What I mean by mining is the process of how Bitcoin is added to the blockchain. There is new bitcoin entering the market by people who are mining the bitcoin themselves. With 18 million bitcoins already mined, there is not much left, and once this number is reached there will be no more bitcoins entering the market.

How can I use Bitcoin?

You can buy bitcoin on many sites, some decentralized with smaller fees and others centralized. One bitcoin currently costs $19,424, which is very expensive, so you do have the option to buy partial amounts that fit inside your budget. Once obtaining bitcoin, you can do just about anything with it, but what has made it so enticing to people is the potential it has for growth in the future. With many current global economic issues and inflated fiat money, bitcoin continues to look more promising. You can also sell your bitcoin whenever you please and receive the amount it is currently worth.

What is the Future of Bitcoin?

While there are still plenty of differentiating opinions on Bitcoin in the future, the consensus still believes it is bright. While this has been the biggest crash in Bitcoins’ history, there has been a cyclical trend. In December 2017, bitcoin had reached over $19,000 but by the following March was under $7,000, bottoming out at $3,183.51 that December. However, bitcoin recovered, reaching over $61,000 in March 2021 before falling to just over $31,000 in July. As stated earlier, Bitcoin reached its current peak last November before beginning its recent fall, but if the trends of its past self continue, then it will recover, and there is no limit on its peak price. Many experts have predicted that bitcoin will reach six figures in the next decade, but we can only wait and see.