Who hasn’t heard of bitcoin?
Not talking about cryptocurrencies today is like not having internet or never surfing the web. The potential of crypto is THAT appealing and invasive. Its popularity only grows, so look out.
Crypto got this far with the help of blockchain, which makes digital tokens the reliable, decentralized and unhackable currency so many are now using. Every transaction made in Distributed Ledger Technology (DLT), which is a fancy term for blockchain, is secure and fast.
The way the world does “currency” is changing, and global exchanges are taking note of it. The traditional, fiat currencies of the world are issued by central banks, but crypto isn’t. Instead, a network of computers linked to a central algorithm manages the supply and demand of e-coins.
We are entering a decentralized world, but many have already done so, and bitcoin is to blame.
The Bitcoin blockchain, though not the first of its kind, launched in 2009 and created a sure example of what e-coins should look and operate like. We can’t have a discussion about decentralized money without mentioning it. It’s the father of all crypto as we know it.
There are two ways to reference it—“Bitcoin” or “bitcoin.” When capitalized, it references the blockchain that operates it. When without caps or when abbreviated as “BTC,” the writer whose work you’re reading highlights the actual coin. The Bitcoin blockchain is a ledger for bitcoins.
Some of the real questions you should be asking regarding what bitcoin is are:
While learning if bitcoin is a good investment, keep in mind that it’s volatile. Yup, that means risk even though investors see market correlation behind it. Correlation means that the price of bitcoin follows financial markets like the USD, interest rates and economic data used by central banks.
What makes bitcoin unique, however, is that it STILL rises and falls without rhyme or reason.
Take a look at any long-term bitcoin chart to discover this. Bitcoin is fun to forecast.
Satoshi Nakamoto—likely the most famous unidentified person in the world—introduced his thesis for bitcoin on October 31, 2008. He is bitcoin’s founder. Written as Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi’s paper revealed Bitcoin’s code structure as we know it. Nakamoto, who’s only verifiable as a pseudonym, launched bitcoin in January 2009.
The success of bitcoin’s cryptography led investors to ask if bitcoin is a good investment. You see, many attempts were made to launch digital currencies before bitcoin, but they failed.
The science of cryptography, which is what blockchain encodes with, is what made BTC golden.
Soon after, crypto exchanges centered BTC as “a global reserve for cryptocurrencies” in the same way that the USD is a global reserve for fiat currencies. Other coins, therefore, were priced based on bitcoin’s stock price and were changeable by first having bitcoin to convert.
In 2010, just a year or so after its launch were the first bitcoins used in a purchase. Laszlo Hanyecz bought two Papa John’s pizza pies for 10,000 BTC. Even now, Bitcoin Pizza Day is celebrated every May 22nd—for pizza that would cost roughly $260 million in USD today.
Decentralization, free from government interference and anonymous spending were the goals.
Bitcoin was designed to do what a number of prior, failed attempts couldn’t. Decentralizing the purchase of goods and the flow of “real” money was BTC’s forecast. Though some projects prior to bitcoin figured out the use of cryptography, they failed to generate the same publicity.
Though “cypherpunks,” like David Chaum, publicized themselves as crypto-developers, Sathoshi Nakamoto appealed to a larger crowd. Dare we say he appealed to the dark web also?
Even so, nothing else reached the scope of Bitcoin blockchain’s autonomy and anonymity. This is largely because, even with cryptography involved, the value of those prior e-coins was tied to commodities like gold and not entirely based on public demand like the price of bitcoin.
It’s this demand that also makes bitcoin charts highly volatile and thrilling to trade. The profits were inevitable, and you can learn more about how on this page of crypto assets.
Bitcoin is operated through a group of nodes, which are separate computing agents within one large network. This network is the basis for the blockchain’s decentralization. Each node within Bitcoin’s network is prescribed to the task of validating transactions occurring on its blockchain.
Together, validations on each transaction, in an effort to sustain autonomy, create a consensus. That consensus disables any single entity from creating or confirming new blocks without the validation of other nodes. This process is called “proof-of-work” and is outlined in the following:
*The creation of bitcoins: Mining is what creates new bitcoin. Anyone is free to support the Bitcoin blockchain by supplying it with computing power. Such people are called miners. They earn bitcoin by using their hardware to validate blocks in a chain, which are bitcoin transactions.
*Recording transactions: Bitcoins are transferred to and from different accounts through real transactions. Such transactions have been recorded as blocks in BTC’s ledger since the inception of bitcoin.
*Validating transactions: The Bitcoin blockchain is a record of past and current transitions, which miners have and are using their computing power to verify. Each miner verifies their block of transactions by instructing their computers to solve complex equations that lead them to reach a consensus. This consensus enters verified transactions into the blockchain ledger.
*Establishing security: For each block of data, which holds BTC transactions, a hash is created. The hash uses cryptography to conceal prior blocks linked to it and thus future blocks to be created. This layer of cryptic security makes modifying or falsifying transactions nearly impossible.
*Limiting supply: There are only 21 million tokens that can be created by the Bitcoin blockchain. Theoretically, this is enough to compel miners to mine and for society to demand more BTC.
Keep in mind how much risk you can tolerate and how much at bitcoin’s stock price you plan to buy. As you do, consider these three-reliable platforms used by investors for bitcoin charts:
Start with a credit card or bank transfer because that’s how secure Coinbase has become. You’ll need a verified account, which you receive by verifying bank info with an ID and phone number.
Coinbase, which you can learn about here, offers you the option of mobile trading through its app. The exchange uses two-step verification and will keep your funds secure via cold storage.
Buying bitcoin is also easy on Binance, and this interface is certainly among the fastest around. What started in 2017 now enables traders to use fiat or other e-coins to scoop bitcoin up with.
You can learn more about this exchange here. Now Binance does operate with fees that you incur, and costs are based on transaction type and amount, but it has over 90-million users.
As a known and regulated exchange, Kraken is recommended when you prefer bank transfers to get crypto through. As you’ll learn in this review, you’ll have more crypto than bitcoin to buy.
Kraken’s launch in 2011, as a pseudo-Silicon Valley crypto exchange, resulted in a base of over 6-million investors. Secure and safe, Kraken offers two-factor authentication and has a security reputation that few exchanges can, likewise, boast of.
Which platform do we recommend?
We find all of the listed exchanges worth a try, but you’ve got to choose one to start with. The most popular agency for buying bitcoin through is Binance. Navigating its site is easy, and even beginners buy bitcoin within a small learning curve. Advanced traders benefit as well.
As of the summer of 2023, bitcoin traded in a range between $25,920.41 up to $28,006.50. Specifying the full value of bitcoin’s price in USD, however, is a bit more tricky. Not only should you include exchange fees, but the time of day or week will always offer you different prices.
Bitcoin’s all-time high was a volatile $68,789.63 USD, and that sets a price ceiling to be desired.
We urge you, with caution and not as investment advice, to invest what you can afford to lose. Bitcoin’s stock price is highly volatile on long-term bitcoin charts.
Your intent to buy bitcoin crypto can be guided by an investment strategy. Are you strategizing for profits? Do you only want to make anonymous purchases? The options you have are:
Regardless of what drives your intent to follow bitcoin forecasts, keep volatility in mind. Put your purchase in perspective by measuring your tolerance to risk. In all of your strategic options, bitcoin can also be purchased in fractions, saving you the uncertainty of owning a full bitcoin.
You should also follow the circulation of bitcoin since only 21 million will be released. Roughly 19 million have already been mined, and this information could influence your strategy.
Monitoring the evolution of bitcoin’s price in USD is a reliable way to get involved with BTC. No one, certainly not at its inception, knew bitcoin would run this far or for this long. With what you’ve learned on this page, you’ve become equipped to invest with the best bitcoin traders. Keep yourself informed, and keep your tolerance to risk front and centered.
It’s up to you to now manage your risk and form YOUR OWN opinion of Bitcoin.
What we like
It’s decentralized: No one controls bitcoin’s price in USD, and no one will know how you use it.
It’s transparent: Everyone, those who do or don’t use bitcoin can access its transaction ledger.
It’s secure: Throughout 14 years, bitcoin’s cryptography hasn’t faulted. Though some irresponsible exchanges have been hacked, the actual blockchain of bitcoin remains intact.
What we don’t like
It’s volatile: Yes, there are no guarantees in bitcoin forecasts. NO ONE knows how much it will cost. Anyone who claims to know the future price of bitcoin, instead, is just speculating.
Its exposure: Though Bitcoin’s blockchain stands the test of time, failing to protect or wisely use your crypto wallet can leave you exposed to hacks.
Its adoption: Bitcoin charts grow in popularity, but you can’t quite use bitcoins for your everyday purchases. This creates a liquidity issue if you want to cash out from e-coins fast.
