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What is Bitcoin and how can you buy it?

Created in January 2009, bitcoin is a unit of digital currency and a worldwide payment system. Often described as a cryptocurrency, it is an entirely virtual currency – “it’s like an online version of cash”, BBC speak.

Bitcoin “has no physical form” and exists “only as a string of computer code”, Time speak. It is bought and sold online, usually in exchanges, and stored in an online “wallet”. Bitcoin codes can also be stored on memory cards or computer hard drives.

Transactions are done with “no middlemen – that is to say, no banks”, CNN speak. It can be used to book hotels on Expedia and buy Xbox games. “But much of the hype is about getting rich by trading it.”

What is the price of one bitcoin now?

Bitcoin is extremely volatile and its price varies greatly. At 9:30 a.m. on January 18, CoinMarketCap The value of a coin is $41,815.56. By the time you read this, the value may have changed.

After the December drop, long-term investors are “doubling their reserves in crypto,” hoping it’s “just a festive blip.” Reuters reported. The breeze has been taken out of the market’s sails after a “bad start to 2022”, said Forbes. Even if some big-name investors make “huge bitcoin price predictions”.

Guido Buehler, CEO of Swiss bank Seba, has predicted that bitcoin will hit a new high in the next 12 months, Yahoo! Finance reported. Bitcoin’s price hit an all-time high of $69,000 in November 2021, and Buehler said the bank’s internal valuation models point to a price range of $50,000 to $75,000. “I’m pretty confident we’ll see that extent,” he added. “The question is always the right time.”

How do you buy bitcoins?

Investors can only receive their bitcoins through an exchange. Including Coinbase, a popular online exchange that can be accessed through an app or a computer.

Bitcoins can be purchased as fractions, which means that investors don’t need to spend thousands of dollars to get their hands on the virtual currency. For example, an investor can hold £10 worth of crypto, which equates to about 0.00033 BTC.

Investors can store and manage their bitcoins in a virtual “hot wallet” on Coinbase. Some investors prefer “cold wallets,” which take the form of a small USB drive. These cost around £100 and are less susceptible to cyberattacks.

Where can you spend bitcoins?

Bitcoin has gone mainstream and it can be used to make purchases at some of the biggest retailers in the world, including Apple, Amazon, and Expedia, Economic News reported. And suppliers are “jumping into wagons”.

Many retailers around the world are starting to accept different forms of cryptocurrencies Retail Gazette. In the UK, outlet stores like Phillipp Plein, Shopify, Whole Foods, Microsoft and Lush accept bitcoin.

If you want to buy something with bitcoin, you need to make sure that the seller accepts the cryptocurrency. If they do, you need an anonymous identifier attached to the merchant’s “wallet” so you can transfer funds from your virtual wallet to theirs.

The “anonymity” of these transactions has made the coin especially popular with drug dealers, ABC News reported.

What drives the bitcoin market?

Cryptocurrencies are a highly speculative venture that often attracts investors on the hunt for higher returns. Part of the market is driven by “bitcoin whales” – around 1,000 individuals who own 40% of the market. “Some big investors might shrug it off,” Bloomberg speak. “They can drive prices down sharply by selling off even part of their holdings.”

Other external factors can have a significant impact on the value of a cryptocurrency. Based on BBC News, a price drop in 2018 was attributed to China and South Korea cracking down on digital currency exchanges, leading to a “global” sell-off.

Business Insider said crypto price crashes are often followed by a rally. One such example is Japan. In April 2017, the market quickly recovered from the crash after the country announced bitcoin would be accepted as legal tender.

Who invented bitcoin?

Good question. The identity of the mastermind behind bitcoin is a Japanese developer who goes by the pseudonym “Satoshi Nakamoto“, Daily telegram speak. The identity of the mysterious Nakamoto has never been publicly revealed, with some suggesting that the alias must represent multiple developers.

Ted Nelson, one of the fathers of the web, thinks that Nakamoto is really the mathematician Shinichi Mochizuki. While in 2014 Newsweek claims the founder to be Dorian Prentice Satoshi Nakamoto, a 64-year-old father living near Los Angeles, although a brief interview with Nakamoto yielded no concrete evidence of this.

However, Australian businessman Craig Wright told BBC that he was part of a group of people who created the currency collectively known as “Satoshi Nakamoto”.

https://www.theweek.co.uk/86952/bitcoin-explained-what-is-it-how-to-buy-price What is Bitcoin and how can you buy it?

Fry Electronics Team

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