Friday, November 15, 2013

Why Bitcoin is Exploding.

So what is Bitcoin? This video has been around awhile gives you the basics of the overall system.

Some background on where it all started. In November 2008, a paper was posted on the internet under the name Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System.

A year later the first open source software came into existence with Mr. Nakamoto creating the first block of bitcoins ever (known as the "genesis block"), which had a reward of 50 bitcoins or “BTC”.

However in 2009 although you could solve these “cryptopuzzles” in the chain and be rewarded with bitcoins they were useless. If no one wants to trade a bitcoin for a physical item it only exists in a computer.

With any bartering system there needs to be a perceived value of the item to give it purchasing power. In 2011 there was a bitcoin forum where a user gave someone 10,000 bitcoins to buy a pizza for him. That amount of bitcoins at today’s rate would be around 4.5 Million Dollars.

If bitcoins are valuable, it is only because they are useful and limited in supply. There can only be 21 million total bitcoins mined and will take until the year 2033 to finish mining all the blocks.

In the last year the amount of bitcoin accepted business has multiplied, has 70,000 merchants all waiting to accept you’re newly purchased or mined bitcoins. There is now even an ATM in Canada that can accept money for bitcoins.

Since more merchants are using bitcoin and more people are fearful of governments or banks the amount of users in the bitcoin community has exploded this year. A bitcoin that cost 23$ in January is now 420$ and rising.

So you are saying I can’t afford to buy a bitcoin at 420$. That’s ok because you can purchase and use micro bitcoins. a bitcoin goes from 1btc to 7 digits out  in the case of uBTC .0000001.

Any variable is available to buy or sell. This is why no matter what a bitcoin is currently worth the amount of the transaction can be adjusted to fit the need. 

Bitcoins should be seen like a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers can convert them to your local currency.

You can directly explore the system in action and setup your first wallet by visiting 

Once you have a wallet you can get your first mico bitcoin on

Or If you want to just buy a bitcoin or a fraction of one you can visit Coinbase.

If you liked this story you can send me a micro transaction to My Blockchain Wallet