Its value has enhanced 125,000-fold since 2010 and Julian Assange claims it has helped to bankroll him and Wikileaks. But experts cannot agree whether Bitcoin is the future or a bubble waiting to burst
IT’S 2010 and you walk into your local Postbode Office, zwak 75 on the tegenstoot and ask for your money back ter dollars.
The cashier forearms you back $121.50 for your hard-earned pounds – $22 more than you would get back for the same transaction today.
On that same day, if you had instead spent your 75 on a mysterious virtual currency named Bitcoin, you’d now be sitting on a pile of money worth 9.5MILLION.
Indeed, since those early days, the online money has multiplied ter value – give or take – 125,000 times overheen.
Such is the investment value of Bitcoin, that Julian Assange claims it funded both him and Wikileaks when he wasgoed compelled to invest ter the currency spil the result of US sanctions.
And financial experts reckon its value could skyrocket even further te the next few years.
So just how do you invest te the shadowy world of Bitcoin?
What is Bitcoin and how did it embark?
Bitcoin became the world’s very first entirely virtual currency when it wasgoed introduced ter January 2009.
It wasgoed created by a shadowy online account which went by the name Satoshi Nakamoto.
Fresh currency is created via a elaborate online process called mining which uses supercomputers to create fresh Bitcoins using complicated rekentuig code.
Te its early days, Bitcoin proved relatively worthless – with one legendary example witnessing an early pioneer paying for a pizza using two bitcoins.
Today that pizza would be worth the omschrijving today of 15,000.
Indeed, within a few years, the currency already had its own ‘buried treasure’ story.
Brit James Howells famously threw out a rekentuig containing 7,500 Bitcoins on its hard drive – the omschrijving of 56MILLION.
Spil only the pc the currency wasgoed bought on can be used to redeem it, the money wasgoed all but lost to Welshman Howells.
The cracked Dell laptop is now believed to be buried below a mound of rubbish at a peak te Newport, Wales.
How can Bitcoin be bought?
The most common way to buy the currency is to download a broker app such spil Coinbase and Blockchain.
Thesis permit users to use a credit or debit cards to exchange pounds for Bitcoin.
Users do not have to buy entire Bitcoins and can purchase a puny percentage that matches the value of their contant investment.
Once a request has bot made, online ‘miners’ will determine whether to approve the transaction.
If approved, the money will be taken from a user’s account te exchange for Bitcoin.
When selling, users can use the same app to sell their Bitcoin ter comeback for its metselspecie value.