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Bitcoin 101: Everything you need to know about bitcoin

bitcoin 101
Posted at 9:47 PM, Feb 17, 2021
and last updated 2021-03-08 09:10:08-05

LAS VEGAS (KTNV) — Bitcoin has risen in popularity lately but many people still don't understand exactly what it is. Here is an explainer:

What is bitcoin?
It is a type of money that is completely virtual. Often described as cryptocurrency. It is basically a computer program designed to allow people to exchange value directly with each other.

WATCH THIS EXPLANATION FROM 99BITCOIN BELOW

When was bitcoin created?
Bitcoin was created in 2009 by an unknown person using the alias Satoshi Nakamoto.

Why was it created?
Its intellectual and ideological origins are in the “cyberpunk” movement of the 1990s and early 2000s. At that time, people began talking online about a digital currency that could be used online without being tracked by governments or corporations.

How many bitcoins are there?
There is currently 18,590,300 bitcoins in circulation. There is a maximum supply of 21,000,000.

Bitcoin has a fixed supply. It is hard-coded into the bitcoin protocol and will not change. This ensures that the digital money will increase in value over time.

Why are bitcoins valuable?
They are valuable because people are willing to exchange them for goods and services.

Is it safe?
Yes, it is considered a safe asset similar to gold.

Why do people like using bitcoin?
Bitcoin can be used to buy merchandise anonymously.

Although every bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed — only their wallet IDS.

People like the fact that bitcoin is not controlled by the government or banks. However, that also means that it is not insured/protected like money in a bank.

What is the public log called?
The public log or list is called the blockchain. The log or list makes it possible to trace the history of bitcoins and stop people from spending coins they do not own or making copies.

How do you get bitcoins?

  • You can buy bitcoins using real money.
  • You can sell things and let people pay you with bitcoins.
  • You can create bitcoins on a computer through a process called mining.

Why is bitcoin valuable?
Because people believe they are.

Why does the value of bitcoin change?
The value is determined by supply and demand. When demand for bitcoins is high, the price increases. When the demand is low, the price falls.

Why do small businesses like bitcoin?
Unlike credit cards, there is no processing fee.

What can Bitcoin be used for?
It can be used for almost anything — paying your rent, booking hotel rooms on Expedia, buying furniture on Overstock and ore.

How can you buy bitcoin?
There are multiple locations in Las Vegas valley where you can buy bitcoin. You can find locations by clicking here or here or here.

You can also buy bitcoin at The D Las Vegas.

You can also buy from Coinbase, Coinmama or Gemini.

How do you store bitcoins?
Bitcoins are stored in a “digital wallet,” which exists on your computer or in the cloud. The digital wallet is a virtual bank account. It allows users to send or receive bitcoins, pay for goods etc.

Why are bitcoin prices at an all-time high?
In response to the coronavirus pandemic, many governments around the world starting flooding global markets with money to boost spending and help save the economy.

Many people began buying bitcoin as a hedge against looming inflation and poor returns on other types of assets.

Is bitcoin a good investment?
Bitcoin is a speculative investment and it has a short history. According to the Wall Street Journal, bitcoin rose 20% in the first weekend of 2021 and then fell 20% in the second weekend.

In January 2009 when it launched, it had no value. In February 2021, it surpassed $50,000 for the first time.

RELATED STORY: BITCOIN BONANZA: Cryptocurrency soars in value, Las Vegas casinos, business embrace it

SOURCES

What is bitcoin?
Why is Bitcoin’s price at an all-time high? And how is its value determined?
Bitcoin: What to Know Before Investing