Trying to Understand Bitcoin
You may have heard a lot about Bitcoin on the news and been just as confused as the rest of us about what it actually is.
First things first, Bitcoin is a "new" type of money. Right now money is regulated by the government. They decided how much to print and try and control the worth of the dollar. You can read more about that here. Bitcoin is not regulated by the government and therefore there is no one controlling or administering the currency.
How did Bitcoin begin?
Bitcoin was created in 2009 by an unknown group of people, just to add to the mystery of this currency. Since this time is has grown into a larger phenomenon
How is Bitcoin created?
People who create bitcoin are known as miners. I will not bore you with the whole process as to how this is handled but bitcoin transactions are stored in something called the "blockchain" and miners have to go through a process to find new "blocks" within the blockchain and are then rewarded. It is a complicated procedure but technically anyone could become a bitcoin miner.
What is Bitcoin worth?
This value changes and just like stock it is based on demand. Bitcoin cannot be traced and therefore it is sometimes used in illicit activities. However, there are also people using it to buy pizza.
Bitcoin is still such an obscure concept since it is a new and unknown form of currency. Feel free to comment if you have any questions or insights into the matter!