What are Bitcoins

The first Bitcoin proof of concept and specification was published in 2009 by Satoshi Nakamoto. Not much is known about the inventor, some say the name Satoshi Nakamoto is a pseudonym to hide the real identity of the creator. Till now one has claimed to be the infamous Satoshi Nakamoto.

The digital code is based on mathematical calculations and solving very complex problems. Every time a complicated mathematical problem is solved by a computer it is rewarded with a Bitcoin. There are hundreds of thousands of computers on the internet dedicated to solving the mathematical problems, a phenomenon known as Bitcoin mining.

Yes is the short answer however each county has rules about money transfers and Russia, Argentina and Thailand do have some rules regarding bitcoins. Overall the currency is accepted and used worldwide by thousands of merchants.

Bitcoin is traded on exchanges like any other currency or commodity there are a number of exchanges operating is different parts of the world. Buying and selling bitcoins is very easy a simple registration and proof of identity is needed to ensure that money is not being laundered. Each exchange has their own schedule of fees and payments for buying, selling, converting bitcoins to fiat currency like USD or GBP and then transfers of the money you your local bank account.

It is advisable ask all the questions about fees and time frames for transfers before committing to an exchange.

This is essential to securing your bitcoin investment it is advisable to only leave money in internet exchanges when you are buying or selling and all other bitcoins should be stored offline in a cold storage wallet such as an Infinitum Physical bitcoin or an offline computer wallet with limited or no internet access.

The price is based on supply and demand after its peak on nearly $1200 in late 2013 it fell sharply when bitcoin exchanges where the target of hackers and investors rushed to sell their bitcoins before the exchanges crashed. Today it’s a different landscape investors no longer leave large amounts of bitcoins in the internet exchanges instead transferring in small amount needed for the daily trades and keep the majority of their bitcoins in cold storage.

The move by investors to keep bitcoins offline and only use exchanges to perform the transaction rather than using them as banks is helping to stabilise the market.