Bitcoin - what it is, price and where to buy it

Bitcoin – what it is, price and where to buy it

What is Bitcoin?

Bitcoin is a type of cryptocurrency that was created twelve years ago by an unknown person. Unlike “normal” currencies, bitcoin is not issued or managed by a banking body. It is issued on the blockchain protocol of the same name. This new technology is designed for better and faster transmission of digital information on the Internet. This cryptocurrency, like many other cryptocurrencies, is put into circulation by mining. Many people around the world use their computers to mine bitcoins by solving various math problems that help improve the bitcoin network.

In return they get this cryptocurrency. They can then be converted into a classic currency or exchanged for other cryptocurrencies on exchange platforms. The issuance of this cryptocurrency is limited to 21 million units, as projected in the source code. That amount should be reached in 2140. At the beginning of 2018, the number of issued bitcoins exceeded the limit of 17 million, or 80% of the total number. Due to the increasing weight of the budget, the specified cryptocurrency is being created at a slower rate.

Bitcoin where to buy it (source: Pinterest)

Where to buy Bitcoin?

Before buying bitcoin, it is important to keep in mind that, like any risky asset, you should not invest more than you can, or more than you can afford to lose. Strictly speaking, there is no bitcoin account like there are bank accounts. To get bitcoin, you need to open an account on a cryptocurrency exchange platform (there are about a hundred of them in the world today).

Generally, it is possible to buy them by card or bank transfer. One of the most used platforms for buying bitcoin is the American Coinbase. There is also the Binance platform. Some platforms are more ergonomic than others. Commissions also vary from platform to platform. The Bitcoin website regularly updates the platform rankings, listing in particular the number of positive and negative reviews. You are free to buy as much bitcoin as you want. It can be a few of them or just a certain percentage of this cryptocurrency. It is up to you to assess your financial capabilities and buy this most well-known and used cryptocurrency accordingly.

Best Places to Buy Bitcoin in 2021

  • Best Overall: Coinbase.
  • Best for Beginners: eToro.
  • Best for No Cost: Robinhood.
  • Best Instant: CoinMama.
  • Best for Interest and Borrowing: BlockFi.
  • Best for Privacy: Bisq.

How does the Bitcoin price work?

There is no official value for Bitcoin. This indicator is just the average price of bitcoin (usually in dollars) on all cryptocurrency exchange platforms around the world. There are several websites that use this method, the most famous of which is CoinMarketCap. The price of bitcoin is simply regulated by the law of supply and demand. It is not always easy to explain why the price increases or decreases sharply. Since its inception, the price of bitcoin has undergone large variations. In 2017, the price of bitcoin rose from $ 1,000 to $ 19,000.

The historical price of this cryptocurrency, ie the value, was realized in the second half of 2021, when the level of 68,000 dollars was exceeded. There are people whose wealth is measured in billions because they own a lot of bitcoin cryptocurrencies. Due to price volatility, it is difficult to say exactly how much their wealth is in dollars or euros. According to certain sources, the largest owner of bitcoin is the co-founder of the mining giant Bitman. But in fact the biggest owner of bitcoin is Satoshi Nakamoto, the creator of bitcoin, who has not yet been identified. According to several sources, there is a person who owns 1.1 million bitcoins. If this information is correct, then that person is one of the richest people in the world.

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source: investopedia

Best Time To Buy Bitcoin (Price Guide)