There are many ways to make money, or if you are very talented, maybe you can invent it, this is what Satoshi Nakamoto, a 36-year-old computer programmer, did when he invented a new digital currency called Bitcoin in January 2009, where he could without paper, copper, or even silver. To create a new currency that has become one of the most famous innovations in the new millennium, by means of thirty-one thousand lines of programming code, as he spent more than a year writing these codes, driven by anger at the recent financial crisis and his desire to create an electronic currency that cannot be tracked through Cash policies, and its transactions are carried out without an intermediary to be away from money exchange and politics games.
Interest in Nakamoto’s invention increased dramatically, more and more people devoted their time to researching everything related to the new currency and trying to understand it, and at first, Bitcoin was valued at less than a penny, but gradually, bitcoins started to become accepted, so bitcoin price rose very quickly in the beginning of 2010, and by June 2011, the value of Bitcoin was more than twenty-nine dollars, and its value began to increase until Bitcoin price reached 30 thousand dollars now!
What can Bitcoin be used for?
Bitcoin can be used to buy goods anonymously, in addition, international payments in Bitcoin are easy and cheap because Bitcoins are not associated with any country and are not subject to regulation. Bitcoin can be used to book hotels on Expedia, for example, to shop furniture on Overstock, buy Xbox games, and many more other products and services that allow payment in bitcoins. However, many stores do not accept Bitcoin as a payment method yet and some countries have banned it completely because of the hype that started revolving around the use of Bitcoin as a way to get rich quickly by trading and buying it as an investment, hoping that its value would rise.
How does Bitcoin work?
Every bitcoin is basically a computer file that is stored in the “digital wallet” application on a smartphone or computer so that people can send a bitcoin (or part of it) to your digital wallet, and you can send bitcoins to other people so that each transaction is recorded in a public list in general. It makes it possible to track bitcoins to prevent people from using coins that they do not own or to undo transactions made with Bitcoin.
How do people get Bitcoins?
There are three main ways you can get bitcoins:
- You can buy Bitcoins with “real” money.
- You can sell things and let people pay you with bitcoins.
- Or it can be created with a computer.
Why are Bitcoins so valuable?
Bitcoins are valuable just because people think so. There are a lot of things other than money that we consider valuable only because of the increased demand for them, such as gold and diamonds, and because people are willing to exchange them for real goods and services, and even cash.
This may prompt you to wonder why people are interested in buying Bitcoin? And the reason is simply that Bitcoin is not subject to the control of the government or banks.
People can also spend their Bitcoins anonymously, and even though all transactions are recorded, no one will know your “account number” unless you give it to them.
Is Bitcoin secure?
Although it is difficult to create a fake bitcoin or deal in bitcoins that you do not own as every transaction is recorded publicly, it is possible to lose your bitcoin wallet or delete your Bitcoins and lose them forever, all along with thefts from websites that allow you to store your Bitcoins remotely, as the tens of millions of dollars worth of Bitcoins were stolen from Bitfinex when it was hacked in 2016.
Will Bitcoin affect the economy?
Despite the great revolution that cryptocurrency trading has brought about in the world of financial technology, in the long term, it may have serious destructive consequences for the global economy, as it can make a major change in the current economic structure and the way banks and financial institutions operate.
Some believe that the high demand for Bitcoin buying recently came as a result of the decline of traditional currencies and the deterioration of the global economy in addition to the turbulent political situation that dominates the world, but continuing to invest in virtual cryptocurrency trading may give strength to the dark side of the Internet, as it may be an excellent way for fraud, illegal acts, and anonymous transactions.
In fact, there is still no clear effect of encrypted digital currencies on the global economy, as it takes a lot of time to change the structure of the global economy, but there are some concerns that may face the economy due to the high demand for Bitcoin and its ilk of cryptocurrencies, including:
- Replacing the national currency with cryptocurrencies, which is a drain on the state’s wealth.
- The direct negative impact on real investments is ruled by laws.
- Decreased purchases of gold and precious metals.
- The decline in societal savings, and thus less national saving.
- The negative impact on the real estate, trade, and equity sectors.
On the other hand, there are hopes hanging on the quick profit from trading bitcoin, there are many who believe that it may be wise to research and learn how to invest intelligently in the cryptocurrency markets, which is usually very profitable in the long term.
But in fact, no one knows what will happen to Bitcoin, as some countries such as Japan, China, and Australia have begun to prevent and restrict dealing with it, as governments are concerned about taxes and their lack of control over the currency.