If you have a gambler’s taste for risk and reward, here are ten things you need to know about Bitcoin before taking the plunge. drug site bitcoin miner,000 of that on a single surge just last week. Stories abound of people emptying their bank accounts and putting all of their available cash into the cryptocurrency in the hopes of getting rich quick. On the flip side, the Bitcoin bubble could burst anytime, rendering the digital money worthless overnight.
History has many examples of currencies that have failed and been relegated to the dustbin, usually because of run on their value in the other direction: down, with a devastating inflationary effect. The Weimar Republic’s disastrous monetary policy and resulting hyperinflation following The Great War reached a crescendo in 1923 when a single U. That situation was finally stabilized when Zimbabwe adopted the U. From an investment and personal finance point of view, Bitcoin is risky. Bitcoin but won’t be ruined if the cryptocurrency fails.
We don’t advise playing this mania. But we also know that readers want to understand why it’s happening and how that market is evolving, if only to sound authoritative at your next dinner party. To that end, here are 10 things you need to know. Go to a high volume Bitcoin exchange like Coinbase or Vancouver’s QuadrigaCX and sign up for a free account.
Coinbase, the world’s biggest Bitcoin exchange, is presently overwhelmed with demand with as many as 100,000 people per day signing up. An account will give you a reasonably secure place to store your purchase and tools for converting your local currency in and out of Bitcoin. What if I want to mine bitcoins? As gold can be mined out of the ground, so too bitcoins can be mined by digital means. Anybody can become a Bitcoin miner by running specialized computing tools that help process and confirm transactions on Bitcoin’s peer-to-peer network.
Cyber miners can earn transaction fees paid by users or newly created bitcoins issued according to a fixed formula. The more miners there are, the lower the rewards. Why is the supply of bitcoins limited to 21 million units? Theories abound based on fancy mathematical equations, but as with most things Bitcoin, no one really knows for sure.