Understanding Bitcoin in Under Five Minutes
Bitcoin is a unit of cryptocurrency. Simply put: digital money, independent of government created/controlled currency, and immune to inflation. It is a highly secure, stored by users in encrypted online bank accounts; and globally universal. While bitcoin is the first widely adopted variety, is not the only form of cryptocurrency.
There are three ways to obtain bitcoin:
- You can purchase bitcoin:
Presently valued at approximately $6000 USD, bitcoin can be purchased through various cryptocurrency exchanges.
- You can receive Bitcoin as payment for a good or service:
While it is not universally accepted as cash due to its opacity, some large companies, as well as individuals, will accept bitcoin as valid payment.
- You can mine Bitcoin:
Mining is the terminology used for discovering bitcoins (think mining for gold). With a set 21 million Bitcoins in existence; currently there are more than 12 million bitcoins circulating, leaving nearly 9 million more available to be mined.
It is predicted this form of financial exchange is the future for society. Due to the prerequisite understanding of technology required to mine bitcoin, as well as the present underdeveloped interest in cryptocurrency, this prospective transition is in the distant future.
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