What is bitcoin, how does it work and what affects its price?

What is Bitcoin?

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.

Why Bitcoins?

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

Owning Bitcoins

Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.

why is bitcoin rising so high?

The cryptocurrency  reached a new high on Friday (November 3) when it hit a high of $7,454.04 (£5693.58) according to CoinDesk.

Jordan Hiscott, chief trader at social trading platform ayondo markets, believes that bitcoin’s rapid growth model is a sign of shifting paradigms in the world of finance.

He told Express.co.uk: “We are in an age where technology is changing the dynamic of the business world.

“Older, traditional organisations are seeing their long-held dominance challenged by ‘disrupter’ companies.

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“For me, it’s no surprise that another disrupter, this time in the form of an asset or currency, is picking up speed.”

 

 

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