Bitcoin is the first cryptocurrency to be developed. It is a digital currency that uses blockchain technology to manage bitcoin transactions. It was developed in 2009 when the genesis block of bitcoin was created for 50 bitcoins. A man using the alias of Satoshi Nakamoto is said to be the founding father of bitcoin.
How Is Bitcoin Created?
Bitcoin is created through a process called mining. Powerful computers do complex math problems that result in the creation of a bitcoin. It is believed that 12.5 bitcoins are created every 10 minutes for a miner, however, this timeframe is contingent on the speed of the computer and the complexity of the problem to be solved.
What Is a Bitcoin Wallet?
Bitcoin and other cryptocurrencies are stored in digital wallets. These wallets can be stored on the cloud or on a hard drive. Digital wallets maintain the ledger for the bitcoin owner to send or receive bitcoins.
Bitcoin wallets are not bank accounts and are thus not FDIC insured. These accounts are used to help the bitcoin owner to transact business or move bitcoins from one person to another.
Where Can You Buy Bitcoins?
For those who don’t have computers powerful enough to mine bitcoin, they can buy them at a bitcoin exchange. Because bitcoins are not tied to any one government currency, they can be purchased using a variety of currencies.
Coinbase is an example of a bitcoin exchange. Once a person has a bitcoin wallet, they purchase and deposit the bitcoin into their wallet. In some cases, people don’t buy the bitcoin but instead receive it as a wallet-to-wallet transfer from another person. This is akin to sending cash digitally through an app such as Venmo.
Who Accepts Bitcoin Payments?
The list of businesses that accept bitcoin is growing every day. It is thought that nearly 36% of small-to-medium-sized businesses accept bitcoin payments. You’ll probably recognize many names on the list which includes:
- Burger King
- Kentucky Fried Chicken
- Miami Dolphins
- Dallas Mavericks
Tesla’s, Elon Musk, recently invested $1.5 billion of Tesla capital into bitcoin and plans on accepting payments shortly.
If you are unsure as to whether or not a vendor accepts bitcoin, just ask. More are getting on the bitcoin train every day.