A Little Bit About Bitcoin
Bitcoin has been making headlines for over a decade as cryptocurrency has changed the way people across the globe invest and make purchases. The coin, created by blockchain technology, burst onto the scene in 2008 as a decentralized digital currency. Bitcoin can be sent from user to user without any intermediaries.
Bitcoin was created by an unknown person or group under the name Satoshi Nakamoto. The mined coin has a circulating supply of almost 19 million and a market cap of $811 billion. It reached an all-time high of $64,863.10 earlier this year.
Alexander Djerassi wants to point out that anyone can send a Bitcoin transaction without needing any extra approval. Anyone can also become a miner of the coin. The ledger of all transactions remains public and anyone can store it on their computer.
In recent years, companies and businesses across the world have allowed users to make purchases with Bitcoin. The cryptocurrency opened up the ability for users to make purchases quickly with low fees. Users have bought coffee, food, booked flights, and even a Tesla can be purchased with the coin.
Creating Bitcoin does use a lot of energy. All of the mining farms together consume more energy than the entire country of Ireland. This is due to the number of servers being used to quickly process data and transactions.
Bitcoin has caught the eye of entrepreneurs and tech investors across the world like Alexander Djerassi as companies try to figure out how to best use cryptocurrencies. Djerassi created the company Mos.com, a banking platform for students. Changes in regulations of Bitcoin will have a direct impact on banking across the world.
Since 2008, Bitcoin has been consistently making a profit as it shot up into the thousands after opening with just a fraction of a penny. Banks and governments continue to discuss the best way to regulate Bitcoin but at this point don’t have much control. As long as a user has an internet connection and an e-wallet, they have the ability to buy and sell Bitcoin.
Due to the fact that Bitcoin is digital, about 20% of the coin has been lost over time. Users have misplaced keys or had them stolen which has caused a loss in access. An unfortunate situation to say the lost.
The United States government has placed Bitcoin and all cryptocurrencies into the category of capital assets. This means it has to be accounted for on an American’s tax record similar to a stock or a bond.
Bitcoin has caused a rise in digital currencies as there are now over 2,500 across the world. There is 21 million Bitcoin in total, but just 19 million in circulation. Constant mining will eventually release all of the digital coins into the market.
A fun fact, May 22nd has been celebrated as Bitcoin Pizza Day. Apparently, back in 2010 a programmer from Florida used 10,000 Bitcoin for two Papa John’s Pizzas. It was the first purchase ever made by Bitcoin. 10,000 Bitcoin was worth just $41 at the time.