What is Bitcoin?
Bitcoin is referred to as a cryptocurrency, a virtual currency or a digital currency. It is completely virtual. There are no physical notes or coins for this type of money.
With bitcoin you are able to buy products and services, but today not all shops accept Bitcoin as a form of payment and even some countries have banned them.
Bitcoin is a computer file which is kept in a digital wallet on your smartphone or on your computer. Every time you buy or purchase something using this cryptocurrency, the transaction is recorded in a public list called blockchain. Since all transactions are public in this system, it is easy for people to track the history of each Bitcoin and understand where each Bitcoin comes from.
An interesting fact about Bitcoin is that you can’t just go to a bank and purchase them but rather you obtain them through mining. Mining is completed by high-powered computers that solve complex computation math problems and in return they obtain bitcoins. However, this isn’t easy, it is believed that for a computer to solve one of these complex problems is 1 in 6 trillion.
During 2019, Bitcoin prices have more than doubled and have outperformed the 31% return for tech stocks.