Bitcoin is the new digital money that operates on the internet as a medium to transfer value. Transactions are stored on a public digital ledger that is called the "Blockchain". The main point of difference is that the transfer of value can occur without the middle-man (aka banks).
Bitcoins are not issued by a bank or government, so it might be better compared to digital gold.
It was developed by unknown programmers under the name Satoshi Nakamoto who published it after the 2008 GFC in a research paper called Bitcoin. It came into the picture by 2009.
For something to be valuable, it needs to be scarce which means it has a finite supply. Precious metals, antiques, minted coins and baseball cards are valuable because they are scarce. In the case of Bitcoin, it is scare due to its set cap of 21 million.
There are approximately 17 million Bitcoins in circulation since its existence. It is expected the last Bitcoin will be mined around the year 2140. However, this does NOT mean you have 121 years to buy a single Bitcoin. This is a result of something called the 'halving' which I will explain in detail within another post. In short, each halving produces increased scarcity as the number of Bitcoin’s that can be mined diminishes. This will certainly increase it's value over time.
The easiest way to own Bitcoin is to use an exchange. Exchanges are platforms you need to sign up for (like forums / apps or any other website with user accounts). In Australia, the most popular platform is Coinspot. Based in Melbourne, it is a reputable company. You can read more at https://www.hedgewithcrypto.com which provides a step by step guide.
Global adoption of this new asset class is on the rise. Bitcoin has the highest adoption rate as compared to the other cryptocurrencies, providing trust and credibility. More and more people around the world want an easier and cost-effective way to transact. We are now seeing global organizations begin to heavily invest funding for research into blockchain technology to examine how it can positively impact their already successful businesses.
Some of the most popular companies in the world are now accepting Bitcoin payments such as Wikipedia, Microsoft, Expedia, AT&T, Gyft and Shopify to name just a few.
