Bitcoin is Exploding In Price This Past Week!  Tesla Buys $1.5 Billion in Bitcoin!
Channel: Media Consultants
Date: 2021-02-18

#shorts #bitcoins #crypto #currency
https://coinbase-consumer.sjv.io/LPaZAa      (get started with Bitcoin)
https://linktr.ee/goldnsilver
Bitcoin value is surging!
The easiest way to buy cryptocurrency is through a centralized exchange, such as Coinbase.
Bitcoin is a virtual currency, created 12 years ago, as an alternative to government-issued “medium of exchange” that we know as cash. It has a similar function as a “store of value” like gold. But unlike the precious metal, you can’t hold bitcoin or fashion it into jewelry. It exists only as an electronic file. Transactions are recorded on a distributed and decentralized ledger. So if you lose your bitcoin’s web address, it’s gone for good. No government entities regulate it.
Elon Musk, the mega-billionaire CEO of Tesla, recently bought $1.5 billion of bitcoin and said his company will  start accepting it as payment for its electric cars. Mastercard this month announced it would support selected cryptocurrencies in its payment network. Apple Pay last week said it would allow citcoin to be spent online, in retail stores and on apps. BNY Mellon last week said it would hold bitcoin and other cryptocurrencies for its account holders.

Bitcoin can be used to buy many things anonymously, from Tesla cars to illegal items on the Dark Web. And unlike the greenback, only a limited amount exists.
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What is Bitcoin?

Bitcoin is an online financial currency that people use to payments to one another. Bitcoin is another method of payment system similar to MasterCard credit cards or Paypal. Everyone knows Mastercard & Paypal's networks have to be managed by rules, laws and make a profit for its shareholders.

Bitcoin is different, it is decentralized. No one owns or controls the Bitcoin Network.

Everybody knows the U.S. dollar is monitored by Federal Reserve, Mexico governs the Mexican Peso and the Euro by the European Commission.

What's different about bitcoin I mentioned is there is no one entity that is "in charge" of bitcoin. Bitcoin has a peer-to-peer structure, with thousands of computers working together to process Bitcoin transactions in what is called a blockchain (recording of bitcoin transactions).

The way bitcoin was setup means that it is the world's first completely open financial payment system.

Plain English?

Bitcoin is a worldwide online currency. No government owns bitcoin but it's governed by its users.

Why the heck would anyone want 
to use online currency?

Well, back then our U.S. dollar was backed by gold called the Gold Standard.  President Richard Nixon took us off the gold standard in 1971. So now the U.S. dollar is considered Fiat (currency governed by regulation or law).

What am I getting at?

Well, since our dollar is not tied to a commodity anymore (gold) there has been a loss of faith in government-backed currencies.

We aren't the only ones, there are many around the world that don't have faith in their government making the rules and laws of their currency like the Chinese Yuan, the Euro etc.

So, the person that invented bitcoin named Satoshi Nakamoto created this bitcoin system/currency for a way to still use currency while not relying on governments. It started off a couple years ago very small but bitcoin's value has caught on and more people are accepting it.

Bitcoin is also anonymous.

How? Well, you do not need a bank account, need to prove your identity, there is no government that governs it.

Instead, bitcoin, when purchased, is a recorded transaction in the blockchain.

Unfortunately, many people that love that bitcoin is anonymous has also attracted the wrong type of people too like drug purchasers or cartels. Bitcoin is a favorite for these types of people because again it's anonymous.

Where do bitcoins come from?

In our U.S. financial system, new money is printed/created by our central bank, the Federal Reserve. Bitcoin doesn't have a central bank or government, right? So, there needs to be another system in place for producing currency into circulation.

As mentioned earlier thousands of computers work together to process bitcoin transactions. These computers are called "miners". Every 10 minutes a bitcoin miner wins a computation race and gets a prize of 25 bitcoins.

Every 4 years, this reward is cut in half. So in 2009 miners were rewarded 50 bitcoins, 2012 it is 25 bitcoins, and of July of 2016, it will be 12.5 bitcoins.

There are 21 million bitcoins that will be produced over the next few years, no more will be produced. So technically, it's a commodity since no more can be produced, unlike the US dollar, Chinese Yuen, or Euro which can be easily printed by governments.