Ten Things I Now Know About Bitcoin, And You Should Too

2017/12/12 23:19:43

Buying bitcoin is fraught with risks, the least of which is not knowing how to value it.



From BloombergQuintOpinion by Niraj Shah @_nirajshah, December 2, 2017


Bitcoin has been called a bubble for its entire nine-year lifespan. The first real murmurs came in April 2013 when the price was $30 per bitcoin. The meteoric rise in prices though, tells a different story.


Here are the ten most important things that I learnt as I spoke to Kay Van Peterson of Saxo Bank and Vishal Gupta of internetdollar.org on BloombergQuint’s special show Bitcoin: Buy or Beware.


This is in no way a comprehensive list or the most comprehensive guide to what a bitcoin really is, but rather an edited addition to the plethora of information existing on this most fascinating asset class – as it’s often been called – of 2017.


1. Buying bitcoin is fraught with risks, the least of which is not knowing how to value it. (And while this is a routine learning, it is the MOST important.)

2. Only 1,800 bitcoins are generated every day.

3. There are a finite number of bitcoins that will eventually exist in the world.

4. The value of bitcoin is discovered by a process called mining. Miners are responsible for recording all transactions that people do on the bitcoin network, and are, in turn, paid with bitcoins.

5. As more and more machines (single machine owned by different miners or multiple machines owned by the same miner) join the mining process, the cost of bitcoin mining goes up due to the electricity and the cost of equipment. This plays a part in the price or value of bitcoin.


To access the complete article and related material, link below:


https://www.bloombergquint.com/bitcoin ... itcoin-and-you-should-too



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