What is Bitcoin? A Beginner’s Guide
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Investors and journalists have likened the craze for investment in cryptocurrencies like Bitcoin to the American Gold Rush of the mid-1800s. Others compare the mania for the digital currency to the Dutch craze for tulips in the 1700s. It remains to be seen whether Bitcoin and its digital cousins will endure and become a new gold standard or lead the market into collapse like the Dutch tulip mania.
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Digital Currency
Digital currencies, or cryptocurrencies, are electronic tokens generated by networks of computers to replace traditional currencies. Paying for something with digital currency is not the same as paying with a credit card, debit card, PayPal or Apple pay, which all electronically access conventional currencies such as U.S. dollars, British pounds and Chinese renminbi.
Who created Bitcoin?
To really grasp how bitcoin works, it helps to start at the beginning. The question of who created bitcoin is a fascinating one, because a decade after inventing the technology—and despite a lot of digging by journalists and members of the crypto community—its creator remains anonymous.
Bitcoin Safety
Since 2008, almost a dozen hacks of cryptocurrency exchanges have occur. Losses range in the hundreds of millions (dollars). Relatively speaking, however, conventional banking and financial institutions have lost billions of dollars to cybercriminals during this same timeframe. Programmers and cryptocurrency communities are working hard to identify and mend the vulnerabilities in their blockchain networks. If bitcoin becomes an acceptable currency for real-world vendors, government central banks may actually find their role upstaged by sophisticated computer algorithms.On a personal level, anyone who invests in Bitcoin should have the proper internet security in place before accessing financial information and making transactions
