WHAT IS BITCOIN?
Bitcoin is a form of digital currency (or cryptocurrency) that iscreated and held electronically. It’s a peer-to-peer electronic cash-system, which operates independently of a central bank. Bitcoin is the first and most recognized cryptocurrency in the world. Following its success as a digital asset, new cryptocurrencies began arriving
on the market.
HOW ARE BITCOINS CREATED?
After the stock market crash of 2008, a software developer named Satoshi Nakamoto proposed the creation of an
electronic payment system based on a mathematical proof. Today, people all over the world run computers that solve complex cryptographic mathematical problems, which create Bitcoins in a process called “mining.”
There are only 21 million Bitcoins in existence – period. There will never be more Bitcoins created, unlike traditional currency where governments can elect to just print/create more money and devalue it over time. The deflationary nature of bitcoin has earned it the tag ‘digital gold.’
MORE SECURE THAN TRADITIONAL CURRENCY
Users hold their Bitcoin in a digital wallet on a desktop computer or smartphone. All purchases with Bitcoin are powered by blockchain technology. The blockchain is a public ledger that stores details of every transaction made. This record is permanent and cannot be changed or hacked. Blockchain technology promotes transparency and security and does it with lower costs and faster processing times than traditional methods like credit cards. Financial organizations are just beginning to embrace blockchain applications in banking, payment processing, and traditional fnancial trading.
REASONS TO GET INVOLVED / ENGAGE IN BITCOIN
1. RETURN ON INVESTMENT
Bitcoin is a high risk, high-reward investment. In 2017 alone, Bitcoin’s value grew over 1300% and became one of the fastest growing investments of the year. As Bitcoin gains greater acceptance for personal and business transactions across the globe, its value will very likely continue to grow.
2. CURRENCY HEDGE
Bitcoin and cryptocurrencies have a limited supply (just like gold or silver). It will never be devalued by in?ation. Think of it as a free-market alternative to the government’s monopoly on money.
3. PRIVACY & SECURITY
Cryptocurrencies are the only true private money today. Bitcoin and other cryptocurrencies use blockchain technology, which is a public ledger of all transactions. Bitcoin transactions also use state-of-the-art cryptography,
making your information dramatically more secure.
4. FREEDOM FROM BANKS
Today’s banks are highly regulated by the government, resulting in peoplehaving less control over their own money.
Bitcoin provides an alternative:
- Accessible 24/7 and 365 days a year
- Signifcantly reduces or eliminates banking and ATM fees
- Not subject to capital controls (like China) or confiscation (like Crete).
GROWTH / TRENDS.
Bitcoin has been the top-performing currency for over six of the past seven years. In 2017 alone, bitcoin was one of the fastest growing investments on the market. What’s more, that growth trend is projected to continue in the years to come.
BITCOIN BY THE NUMBERS
- 4-7 seconds to process a transaction on the legacy Bitcoin blockchain.
- 1300% price increase from beginning to end of 2017.
- Over 16 million Bitcoins are currently in circulation.
- Bitcoin supply will never exceed 21 million coins.
- Over 21 million blockchain wallet users as of December 2017.
WHY BITCOIN HAS POTENTIAL TO KEEP GROWING
Just a few of the reasons why it may continue to grow include:
1. Widespread Global Adoption;
Believe it or not, the more people adopt Bitcoin as a currency, the more valuable it becomes. The adoption of Bitcoin as a currency is growing worldwide. The number of Bitcoin users across the globe is expected to increase to 400 million users by 2030.
2. Dramatic Growth In Cell Phone Penetration and Mobile Payments;
The number of smartphone users is expected to reach 6.1 billion by the year 2020. This means that the majority of the world’s population will have the ability to carry their bank in their pocket. Bitcoin could account for up to 50% of non-cash transactions, increasing its market share and, thus, its value.
3. Increased Retail Acceptance;
Microsoft was one of the frst corporations to accept Bitcoin as a payment option and the number of businesses and retailers accepting it continues to grow. Some experts have projected that Bitcoin could be
as disruptive to traditional currency as email was to direct mail. A few of the retailers accepting Bitcoin today include: Amazon.com, Target, Expedia, Tesla, PayPal, Overstock, CVS pharmacy, and more.