File Image :An illustration photo of Bitcoin

CAPE TOWN - What is Bitcoin?

Bitcoin is a digital currency that is not linked to the operations of a bank or government and allows its users to send money anonymously. 

According to Quora, The coins are created by users that create an algorithm which is known as Mining Bitcoin.  When using Bitcoin,  it is decentralised, meaning that large banks can’t control the money putting users at ease. 

Recently, one Bitcoin traded for $1,734.65, according to Coinbase, a company that helps users exchange bitcoins.  Bitcoin value is worth more than an ounce of gold, which trades at less than $1,230. 

Bitcoin was launched in 2009 by a person or group of people operating under the name Satoshi Nakamoto. Nakamoto disappeared as Bitcoin began to attract attention. In the beggining, people were not too excited about Bitcoin but Techies found it to be a great innovative solution to convert their currency and not have it controlled by large banks. 

Fin24 reported that Bitcoin, for the first time surpassed $4 000 by growing optimism, due to faster transaction times which will hasten the spread of the "cryptocurrency".

Events that made it possible was that a bitcoin-clone called Bitcoin Cash was created. Unfortunately, it received less attention than most people expected. A few days later Bitcoin developed SegWit, a code modification that allows for more transactions to be stored as it frees up space in the blocks.  

These two code-related developments have helped boost confidence in Bitcoin’s future.

The main reasons that make Bitcoin popular:

1. A Bitcoin account is easier to create than even setting up a bank account.

2. Anonymity is key, you are allowed to have multiple Bitcoin accounts and they will not be linked together

3. Transaction fees are lower than banking fees. 

4. Payments show in a matter of minutes, which is as soon as Bitcoin processed it.

- BUSINESS REPORT ONLINE