The Essential Bitcoin Guide: 11 Things You Need to Know
May 21, 2014 | Blog
Okay, you’ve heard by now lots of things about Bitcoin, an Internet-based system of currency that’s made headlines since it debuted a couple of years ago. But what’s the big deal with Bitcoin, and what is is all about?
Here is Powered Labs’ guide to understanding Bitcoin basics that covers all you really need to know.
11 Bitcoin is a peer-to-peer payment system that was created in 2009. It is a virtual currency. It may or may not have been invented by Satoshi Nakamoto
10 A group of Networkers control Bitcoin, making it decentralized, as opposed to US Dollars which are controlled by the government and banks. It still works the same as money – when you receive a service or good, you pay that individual for their labor or service in exchange for it.
9 Bitcoin’s value changes based on supply and demand. Just like anything else in the world, when there are fewer of them, Bitcoins become more valuable.
8 The total amount of Bitcoins that can ever exist is capped at 21 million. Every few years, the number of Bitcoins in circulation is automatically cut in half.
7 In April 2011, the value of Bitcoin held steady at $0.75. By January 2014, that value had skyrocketed to more than $1,000.
6 Today, the value of 1 Bitcoin
5 While it has been linked to some controversial black markets like Silk Road
, Bitcoin’s primary purpose is NOT to buy drugs on the Internet with.
4 A fellow Floridian programmer named Laszlo Hanyecz spent 10,000 Bitcoins to purchase a pizza valued at $25USD. It was the first real-world transaction to go down.
3 Bitcoin is not anonymous. In fact, all Bitcoin transactions are fully public, have traceability, and are documented in the Bitcoin network forever! You can learn more about how to protect your privacy and how it works here
2 People who keep track of Bitcoins transactions are called Miners. After a transaction is publicly published, they verify it and after doing so
, are rewarded a new Bitcoin for their efforts.
1 Powered Labs now accepts Bitcoin as payment for all of our services! Whether you’re in the market to develop a mobile app, want a beautiful new website for your business, or want to place bets on who’s the better Killer Instinct gamer… we are now accepting this currency.
Tags: apps, Bitcoin, Powered Labs, web design