What is it?
Bitcoin is a currency that was created in 2009. Transactions are made with no middle men – meaning, no banks. Bitcoin can be used to book hotels, shop for furniture, pretty much anything these days as many businesses are getting on board.
But much of the hype is about getting rich by trading Bitcoin along with other similar cryptocurrency. The price of Bitcoin skyrocketed late in 2017, which in turn made the value of other cryptocurrency go up. Some people have made millions, when 1 coin was just worth just cents, but its value went up to $20,000 AUD early this year.
How to buy and trade in Australia
What’s the hype about using Cryptocurrency?
1.) Irreversible: After confirmation, a transaction can‘t be reversed. By nobody. And nobody means nobody. Not you, not your bank, not the president of the country, not the creator of the coin, not your miner. Nobody. If you send money, you send it. Period. No one can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.
2.) Pseudonymous: Neither transactions nor accounts are connected to real-world identities. You receive Bitcoins and other cryptocurrency on so-called addresses, which are randomly seeming chains of around 30 characters. While it is usually possible to analyse the transaction flow, it is not necessarily possible to connect the real world identity of users with those addresses.
3.) Fast and global: Transaction are propagated nearly instantly in the network and are confirmed in a couple of minutes. Since they happen in a global network of computers they are completely indifferent of your physical location. It doesn’t matter if you sent Bitcoin or other cryptocurrency to your neighbour or to someone on the other side of the world.
4.) Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of big numbers makes it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.
5.) Permissionless: You don‘t have to ask anybody to use cryptocurrency. It‘s just a software that everybody can download for free. After you installed it, you can receive and send Bitcoins or other cryptocurrencies. No one can prevent you. There is no gatekeeper.