Assets, Bitcoin

How Did Bitcoin Get Its Value?

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

Bitcoin is unique in that there are a finite number of them: 21 million.

NOTE: WARNING: Understanding how Bitcoin got its value is complex and involves a variety of factors. Before engaging in any financial transaction involving Bitcoin, it is important to understand the risks associated with investing in cryptocurrencies. Additionally, there is no guarantee that the value of Bitcoin will remain stable or increase over time. Investing in Bitcoin is not suitable for everyone, and you should always assess your own risk tolerance before investing.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

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