Tech Corner: December 2021
Topic: What is Bitcoin?
By now, you’ve certainly heard someone use the buzz word “bitcoin” or “cryptocurrency.” Although, do you really understand what it is, what it means, or how it works? The point of this tech corner is not to make you an expert on the subject, but to give you a general understanding on what people are talking about when they use the word.
When did it start?
Since its inception in late 2009, Bitcoin has become the best-known form of cryptocurrency in the world. In fact, as of 2021, there are more than 106 million people around the world using cryptocurrency, with more than 270,000 confirmed transactions on a daily basis!
Why is it called cryptocurrency?
The term Bitcoin is known as a form of cryptocurrency, because it uses data cryptography (a form of encryption) to keep it secure. Bitcoin transactions are verified through massive amounts of computing power and technology typically known as “mining” or “bitcoin mining”.
What does it look like?
Bitcoin is not a physical coin, rather an imaginary coin that exists in the digital world only. These coins are typically collected over time through the bitcoin mining process, or through an exchange for goods/services or buy/sell transactions within the online marketplace. In fact, as the popularity continues to rise, many brick and mortar environments are allowing payment through bitcoin.
What is it worth?
The value of bitcoin in the initial stages was less than $1 for 1 bitcoin back in 2011. As of November 2021, the value of 1 bitcoin is now worth approximately $68,000. Bitcoins have a total market cap of $1.17 trillion.
Why is it often associated with scams?
When you break it down, virtually every currency or payment method is associated with scams. It is not so much about bitcoin, but more about the scam. Scammers or Hackers typically gravitate to bitcoin based on its relative worth and difficult traceability back to the scammer.
At the end of the day, Bitcoin is here to stay and continues to become more popular and valuable on a daily basis. Whether it makes sense for you to invest or utilize the technology is less as important as understanding what it actually is, and how it works.
T-Tech Solutions LLC wishes you all a safe, healthy, and happy holidays. We will see you back in the tech corner in 2022!