Guide to Bitcoin
Bitcoin is the world’s first digital currency created in 2009 that uses decentralised technology for secure payments and storing money that doesn’t require banks or people’s names. Cryptocurrency enables individuals to trade directly between themselves, peer to peer, without needing to rely on the services of centralised banking organisations, thereby relieving the risk of centralised failure Bitcoin works on a public ledger called blockchain, which holds a decentralised record of all transactions that is updated and held by all users of the network. The price of a Bitcoin has fluctuated since it first entered the mainstream consciousness in 2013. That year prices rose by almost 10,000 per cent before the collapse of Mt Gox, the biggest online Bitcoin exchange, sent it crashing.
Prices slowly crept up but have since surged again. This is largely put down to regulators appearing to warm to Bitcoin and the rise of initial coin offerings – a way for projects to raise money by selling cryptographic tokens similar to Bitcoins. Many sceptics believe we are in the middle of a new Bitcoin bubble, while advocates say we are just beginning to see the rise of Bitcoin.
Bitcoin is a cryptocurrency, It is the largest cryptocurrency and there are other smaller currencies. The idea of a cryptocurrency was born during the global financial crash in 2008. Transactions are instant, global and virtually commission free. Bitcoin was introduced in January 2009 by Satoshi Nakamotoas as the world’s first cryptocurrency
The Blockchain technology which Bitcoin uses is a public ledger. It holds a record of all Bitcoin transactions but does not link any transaction to a particular individual or identity; it is entirely anonymous.
$138 Bn Market Cap
As of November 20th 2017 the total value of all the Bitcoins in circulation is $138bn Dollars (source www.bitcoin.com). The total number of Bitcoins in circulation is 16.5 million. This number will grow to a maximum of 21 million Bitcoin, after which no more Bitcoin can be produced.
Bitcoin Owner Sovereignty
As Bitcoin is not owned by a Bank or Institution,the Bitcoin owner is sovereign of their own digital currency. It is possible to store Bitcoin either in an online wallet or offline ‘cold storage’ such as a USB flash drive.
Store your Bitcoin
Store on your phone
For most Bitcoin owners a “Hot” wallet will be appropriate. This is stored in the cloud and can be accessed on your phone, tablet or computer. BitKiosk recommends the app Blockchain which offers a high level of security and ease of use. This allows you quickly to send and receive Bitcoin.
Store on a secure remote device
For peace of mind, and HNWs, a cold wallet is recommended. Your Bitcoin is stored on a USB stick which requires manual authentication to move your Bitcoin. When your USB is not connected to a computer, there is not way of remote accessing your funds, eliminating the threat of hackers stealing your Bitcoin. Store your Bitcoin