Following what was perceived as the Bitcoin “crash” of 2018, the Bitcoin price bounced back over the summer, reaching heights of $13,000. Bitcoin rivalled Donald Trump for making the headlines, but what is all the fuss about? Use this quick guide to answer your burning questions about Bitcoin, namely what it is and how you actually go about buying it.
What is Bitcoin?
Bitcoin is a form of cryptocurrency — or digital currency — which can be bought and sold by people around the world. Bitcoin is currently worth around £8,000, but this can be broken down into 8 decimal places or “satoshis” — handy, as this means you don’t have to buy a whole Bitcoin, you can buy it in smaller amounts. E.g. £10 at the current price will get you around 0.0012 of 1 Bitcoin.
Right now there are 17,830,538 Bitcoins available in the world. This number increases every day through a process known as mining. Mining happens online and relies upon computers to solve complicated mathematical problems. On a global scale, there are many people/companies using computers to mine Bitcoin and they are rewarded for their work with small amounts of Bitcoin.
Introduced in 2008 during the global financial crisis, Bitcoin was launched with the aim of helping people to transact without the need to involve any authorities. Although it can be used for a number of things, most people will be familiar with it as a store of wealth at the moment.
As the industry develops, this historic view of Bitcoin is changing quickly and more people are starting to use it to pay for goods/services from businesses that accept Bitcoin. The cryptocurrency can also be used as a form of remittance when living away from family and has even become a topic of conversation as an alternative way for businesses to pay employee salaries!
Why should you choose Bitcoin?
Money as we know it is changing. Recent reports indicate that cash is only being “used for three in every 10 transactions” and ATMs are closing at a rate of almost 500 per month.
With more and more people doing their finances online, it’s clear that now is the time to choose Bitcoin. As an alternative to physical currencies (like the British Pound), Bitcoin is a digital currency transacted via the Internet and without the need for a middle man (e.g. a bank), making it easy to send to anyone, anywhere in the world!
Bitcoin is also decentralised — or not controlled by any entity such as a company — which is important as any person buying it has the power to manage what they hold themselves. Unlike physical currencies, it’s also not possible to print or create extra Bitcoin because it has a finite supply (there will only ever be 21 million in existence) and it isn’t affected by inflation.
How do you buy Bitcoin?
Bitcoin has become very accessible and can now easily be purchased in the UK. It’s bought and sold on Bitcoin exchanges like ourselves at CoinCorner — all you have to do to get started is register for a free account.
When registering for an account, you’ll need to provide basic information like your name, email address and home address.
Once registered, you’ll be able to top your account by depositing funds in GBP (£). We accept a number of payment methods including credit/debit card, bank transfer and Neteller.
Don’t forget that when buying Bitcoin, you don’t have to buy a whole one! You can buy as little as £10 worth of Bitcoin if you want.
What should you consider before buying?
Before buying, it’s always advised that you do your own personal thorough research to learn about Bitcoin and understand the market.
Bitcoin expert comments on Bitcoin
Our CEO, Danny Scott, said of the recent price movements: “Over the last year while Bitcoin’s price was lower, we’ve spent time developing our team, technology and customer experience to ensure that we’re in the best position possible when the next bull run begins.
We’ve seen the price gaining pace over the past 6 months or so, and from this, we look to be on track to end the year with a price that is miles ahead of where it started at $3,000.”