Bitcoin currency started as a concept in 2008. The name given for accreditation is Satoshi Nakamoto, who is either a single person or group of people who worked on the project. The real Satoshi Nakamoto has never come forward. But what started as a concept has grown to an excellent way to make transactions in the sky high fee world of atm and bank transactions.Bitcoin uses digital signatures. No currency actually trades hands but instead is transacted via a digital wallet and encrypted codes. Bitcoin eliminates the double spending of a transaction. When you buy with a credit card, you often pay two transaction fees. The problem with this is there is no one behind the transaction. It’s completely electronic why should there be two fees for an online purchase for example. Bitcoin helps to eliminate this double spending and give the best value for a transaction.
A single bitcoin value at the onset of the currency in 2010 was cents on the dollar. It has now grown to $4000-5000 per coin, making many people millionaire and billionaires in the process. If you check message boards with about bitcoin, many people were put off by the extremely low price and didn’t pay attention to it. It has changed in today’s world of commerce. In May 2010, a person ordered a pizza for 10,000 bitcoins. The price of bitcoin at the time was around .07 cents and means the pizza cost about $700. Today, that 10,000 of bitcoin is worth around $45,000,000. Today with many merchants accepting bitcoin, consumers get a much better price for the bitcoin.
Over 100,000 merchants accept bitcoin as a payment method. A partial list of merchants who utilize bitcoin include:
. Subway food shops
. Virgin Airlines
. Re/Max London
. MIT Coop bookstore
. Whole Foods
There are many more who are accepting bitcoin as is catches on with the public at large. Not everyone is happy about bitcoin.
China has shut down bitcoin exchanges by banning fundraising for new digital currencies. Bitcoin is still trading in China though users must go to peer to peer exchanges instead of bitcoin exhanges. Some government concerns with bitcoin include money laundering and tax evasion. Bitcoin in China trades at a discount to bitcoin around the world. When the announcement that China would be banning fundraising for digital currencies, it pushed the price down considerably in September 2017. This action also hints of the potential problems of the currency. If a government agency bans the bitcoin the value of bitcoin could drop precipitously. Many people who used the exhanges to buy coins are turning to peer to peer marketplace to exchange bitcoins.
Peer to peer marketplaces are like online markets where buyers and sellers arrange the transaction. And if everything is ok, the deal is made. It’s a great way to get bitcoins. Both parties need to create an account with a virtual wallet and the negoitiating can start from there. Buyers can use gift cards, person to person exchanges like Western Union, cash in person and dozens of other ways to get bitcoin. With multiple of ways to buy bitcoins, there is a need to have more security. Buyers and sellers need to read the security guide lines to ensure a safe transaction.
Bitcoin has grown from being a concept to an established method of payment that is becoming a standard in the world of commerce. It’s popularity is fueled by the reduction of fees associated with banks and credit cards. The chance of banks and credit cards reducing the fees they charge is probably slim and the likelihood of bitcoin continuing to gain in popularity increase.