If you believe this post, it would mean that Bitcoin has value. A big number and positive. Considering the fact that it wasn’t over 5c. Now, where do you think the brain was in those early days? Yes, buying pizza, and more pizza, and more pizza, and more pizza, and… pizza.
The first investors came together buying and selling Bitcoins, and whenever they sold, an auction would pop up on bitinstant.com with one of the many bidders wanting to buy the bitcoins.
Bitcoin is an innovative payment network and a new kind of money. It is the first decentralised digital currency; the transactions take place peer to peer without the need of a central authority or bank that can charge transaction fees and censor transactions.
The blockchain is the public ledger that records all of the transactions. It is completely distributed, meaning it resides on all of the participant’s computers. It is secured by a concept called Proof-of-Work, which requires computing power to solve complex problems. The person who solves the problem first wins the reward, which is a certain number of Bitcoins. Another process takes place to give out these newly-minted coins in a way that doesn’t allow double-spending, since no central authority is managing the blockchain.
The explosive growth of the network and rising prices have made the currency very attractive to speculators as well as investors in technology. While it has existed only since 2008, Bitcoin’s exchange rate has risen sharply in the last 12 months. It has also become increasingly accepted by major financial players, with the New York Stock Exchange (NYSE) creating Bitcoin futures products and JP Morgan creating a cryptocurrency trading desk. In the last week, Bitcoin’s exchange rate surged by 86% in value.
The Idea for Cryptocurrency – the blockchain is the public ledger that records all of the transactions. It is completely distributed, meaning it resides on all of the participant’s computers. It is secured by a concept called Proof-of-Work, which requires computing power to solve complex problems. The person who solves the problem first wins the reward, which is a certain number of Bitcoins. Another process takes place to give out these newly-mint.