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February 8, 2018

Coin Profile: Bitcoin (BTC)

Bitcoin btc

An innovative payment network and a new kind of money.

Coin Market Cap Rank: 1
Current Market Cap: $115,160,771,591
Website: https://bitcoin.org

 

What is bitcoin? Why are people talking about it? Has it peaked already? Let’s start off with the basics.

‘Bit’ refers to a small fragment of digital information, and ‘coin’ refers to the representation of money. Bitcoin was originally introduced in January 2009 and is credited as the first decentralised digital currency to use blockchain technology. Collectively, bitcoin refers to both the particular payment protocol that utilises an electronically distributed ledger (blockchain) and the cryptocurrency that can be traded using said protocol.

Bitcoin (BTC) was invented by the mysteriously reclusive figure Satoshi Nakamoto but has since been released as open-source software, allowing for improvements to the system when needed. As the code behind Bitcoin has been available to all, dozens of altcoin variations have since been created based on the similar blockchain technology.

Has the Bitcoin value peaked already?

Bitcoin saw a dramatic increase in value in 2017, with 1 bitcoin going for less than $1,000 USD at the beginning of the year, and peaking at over 19,000 USD by mid-December. Unfortunately, no promises can be made as to the future value of bitcoin, but it certainly isn’t going away anytime soon. As software developers continue to explore the practical applications of bitcoin and find new ways to improve the current systems, the potential value could increase. The stumbling blocks to growth come mainly from the introduction of government regulations which can cause market speculation.

How much do you need to start investing in Bitcoin?

One of the great things about bitcoin and other cryptocurrencies is that anyone can open a wallet, for free. The simple act of creating an account with Coindirect will let you access a variety of secure wallets like Bitcoin and Ethereum within one account. The minimum coin purchase amount for Coindirect is set per the country you are buying it in as well as the seller you’ll be buying from. The lowest amount is comparable to what you would pay for a nice dinner for two.

Should I invest in BTC?

As with every investment, it’s important to do comprehensive research in order to manage the risks you would potentially be taking. As shown by the explosive market growth during the second half of 2017, bitcoin has established itself as a hot property, but it does come with risks. With the current levels of market volatility, it is not advised to invest any money that you can’t afford to lose.

How many Bitcoin are there in circulation?

16 850 000 bitcoins have been created as of the 6th of February 2018. The total amount of bitcoin that can ever exist will be 21 000 000. Due to issues like forgotten passwords of encrypted cryptocurrency wallets, dead hard drives and lack of wallet backups, some bitcoins are considered lost or inaccessible. With a service like Coindirect, your coin wallets are all hosted on a single account so the support team is able to assist with password recovery.

Is Bitcoin BTC legal?

Part of the appeal of bitcoin is that it was intentionally created to function outside of direct involvement from any government or reserve bank. The cryptocurrency exchanges and peer-to-peer marketplace platforms that help convert traditional currencies into cryptocurrencies can, however, be regulated to protect users from risks, such as fraud. Coindirect is registered with the Isle of Man FSA, so its AML compliance is overseen in line with global standards.

Where can I buy bitcoin?

Check out our step-by-step guide on how to buy bitcoin using Coindirect.

 

Access our integrated platform and #OwnTheFuture with Coindirect.

 

Disclaimer: This article should not be taken as financial advice. Never invest what you can’t afford to lose as the cryptocurrency market is volatile. Always research as much as possible before buying any coin.