Bitcoin is the parent of all modern cryptocurrencies. First proposed in a white paper in 2008 by the pseudonymous Satoshi Nakamoto, Bitcoin is peer-to-peer digital money built on top of an open source blockchain.
Peer to Peer means that bitcoin can be used directly by two parties without involving banks, private companies, or other financial institutions. As digital money, Bitcoin is actually software code: zeros and ones. It doesn’t exist in physical form like gold. The code, itself, is created by a community of people all over the world, and isn’t owned by any single person or company.
A blockchain is a shared public ledger that records transactions. The Bitcoin blockchain is secured by miners, which are computers that verify transactions and then chain them together into blocks by using cryptographic rules.
The primary focus is on Bitcoin as a long term store of value (SOV). There will only ever be 21 million Bitcoins mined, so the resulting scarcity supports an argument that Bitcoin will become more valuable over time. It’s often stated that Bitcoin should be considered a form of digital gold. Bitcoin is also used as electronic cash, to pay for things and transfer value directly between two parties. Additionally, there are non-financial projects where information or contracts are stored on the Bitcoin blockchain.
The price of a single Bitcoin can seem high, but it’s not necessary to buy an entire Bitcoin at one time. The smallest divisible unit of a bitcoin is called a “satoshi,” - a hundred million satoshis make up one Bitcoin. Many investors buy tiny fractions of Bitcoin.
The current price of Bitcoin is $33,770.47 US dollars. This price is up 1.62% from yesterday