What is Bitcoin?

Bitcoin is a cryptocurrency, a cryptoasset, and a store of value. It was invented by a person or a group of people who goes by the pseudonym Satoshi Nakamoto. The first Bitcoin was released on January 2009.

Bitcoin is revolutionary because it is decentralized — that means that there are no banks or third parties needed to send a Bitcoin from one person to another. You can transfer $1M worth of Bitcoin to someone without having to deal with bank agents and their processes to make the transaction. This medium of exchange or cryptoasset runs on a peer-to-peer Bitcoin network that operates on a cryptographic protocol.

Image from Wikipedia

Don’t Trust. Verify.

Bitcoin Hodlers’ motto is: ”Don’t Trust. Verify.” And that is because transactions are verified by network nodes through cryptography and are recorded in blockchain. A blockchain is a public shared/distributed and decentralized digital ledger used to record transactions across many computers. Anyone who has a computer that can access this blockchain can verify the transactions.

Image from Bitcoin Enthusiast on Reddit

Bitcoin as a Store of Value

Bitcoin has been dubbed as a digital gold because it can be used as a store of value. Initially, it was used as a cryptocurrency, but with time, it turned into a cryptoasset because it is being used more and more as a store of value.

It is scarce and the increasing demand for it has caused its price to increase over time. There are only 21 million bitcoins that can ever be mined. 18.5 million of those have already been mined. In 2011, 1 bitcoin was worth $0.30. Currently, on Feb. 5th, 2021, it is worth $38,698 USD. Last month, it reached its all time high of $41,940 USD.

Image from Coindesk

Some say it will reach $100k by the end of the year. On Nov. 19th, 2020, Forbes published an article saying, ”Leaked Citibank Report Reveals Bitcoin could Rocket to $300,000 Price By End of 2021.”

Now, whether it will reach $100k or $300k by the end of 2021 or some time in the near future, one thing is for sure, multi-million dollar and public companies, such as Microstrategy, as well as investment management companies, from Wall Street to UK and Asia, have been buying Bitcoin since at least last year.

I personally find it more of a risk to not invest in Bitcoin, since fiat money has been losing its value due to the central banks’ money printing activities — more on that later. But, again, what do I know? I’m just a regular person with a 9-5 job learning and writing about Bitcoin in the midst of global pandemic while on a lockdown as a hobby.

I say, invest at your own risk. Buy sats with money you are willing to lose. Learn more about this disruptive invention or digital money/asset, and make your own decisions.

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