With its prices and popularity skyrocketing, Bitcoin has quickly become one of the most significant economic innovations of the 21st century.
Bitcoin is essentially virtual money, and investors believe that it will become the currency of the future.
Created by a person under the pseudonym of “Satoshi Nakamoto,” Bitcoin is a type of “cryptocurrency,” or a type of virtual encrypted currency.
The main advantage of cryptocurrencies over other types of currencies is that they are decentralized, which means that they do not have to go through a financial institution for payments or transfers.
This has many benefits: Bitcoin transactions cannot be taxed by governments and larger transactions are completed faster than through traditional means.
In addition, Bitcoin payments are safer from human error than bank transfers because instead of being confirmed by humans, they are verified by the Bitcoin network, which is comprised of computers around the world.
This means that assets are more secure because they represent a value in the network as opposed to a number in a bank computer.
Finally, Bitcoin transactions are all done over a secure network and are all heavily protected, making it ideal for large transfers.
All this makes Bitcoin a very attractive asset for investors and, as a result of many people buying it, the price has skyrocketed.
Recently, Bitcoin’s price reached an all–time high of $7,617.48. This means that the market cap, or the total value of all Bitcoin, is 125 billion U.S. dollars, which is higher than companies such as Paypal and Netflix.
Although many critics argue that Bitcoin itself has no intrinsic value, the computing power and electricity that goes into solving algorithms to “mine” Bitcoin amount to significant real–world value.