Crypto Explained: Bitcoin

What Is Bitcoin?

Bitcoin (BTC) is the oldest, strongest, and largest cryptocurrency by value in the world. Sitting at its peak at almost $1.3 trillion, bitcoin has notably revolutionized commerce. It was first thought of in 2008 in response to the Great Financial Crisis and the major reliance on banks. Bitcoin had the goal of eliminating the need for intermediaries, like banks and governments, making transferring money cheaper and easier.

A Mining Operation:

Miners produce Bitcoin by finding proof of work and creating blocks, which increases volume. Cryptocurrency mining is the process where specialized computers validate blockchain transactions for a specific crypto coin and, in turn, receive coins for their computational effort. They are able to trade these blocks for Bitcoins. Many investors have built large farms where they create Bitcoins and use them to make money. Unfortunately, these machines require a large amount of energy which makes them bad for the environment. This is a turnoff to many that see climate change as a major issue that needs to be addressed.

Growth And Development?

In 2009, Bitcoin came into existence by an individual identified as Satoshi Nakamoto. It was the first of its kind and set up the crypto society in which we live now. According to CoinMarketCap, Bitcoin has shown significant growth over its existence, about 680000% since its start. Although it was created by Nakamoto, no single entity owns Bitcoin, inherently giving it no physical store location.

Should I Invest?

Although it is the least productive currency and is harmful to the environment, Bitcoin is the most foundational cryptocurrency in the world, so investing would be logical. It is the most trusted cryptocurrency and it is higher valued than Tesla, the leader of the car industry, in value. If you are looking at a crypto investment, Bitcoin, I personally believe, is the best option.