Bitcoin has become a buzz word in the investing community, not as an alternate currency unit replacing the fiat money, but as an asset class with a spectacular 1,600%+ return this year, valuation almost doubled just in the December month alone. Bitcoin was heading towards $20,000 before pulling back to today’s $15,000 level. The entire cryptocurrency market capitalization rose above $600 billion for the first time on Dec. 18, 2017. 

Bitcoin Chart Dec. 21, 2017 

Despite what you might have heard people raving about the “money of the future,” the fact is that bitcoin and other cryptocurrencies are very expensive and experimental as well. 

Existed Since 2009

Bitcoin is a form of digital or virtual currency and is not as “new” as you might think. It has existed since 2009. In January 2009, a programmer implemented the bitcoin software as open source code and released it under the alias of Satoshi Nakamoto. There have been many rumors regarding the true identity of Nakamoto, but nothing conclusive so far. 

A Mining Math Game for All

With many companies adopting it as form of payment and many others getting ready to, bitcoins are an extremely fast-spreading “currency”. 

Unlike fiat currency controlled by world’s central bankers and partly backed by gold reserve, Bitcoin is based on mathematics and totally decentralized. That is, much like the precious metal, bitcoin can only be “mined”, not “printed”. All Bitcoin transactions, including Bitcoin creations, are recorded and verified on the blockchain, also originally developed by Satoshi Nakamoto. Today, around the world, people and companies are using software programs and computers following a mathematical formula to produce bitcoins around the world.

1,000+ Rival Crytocurrencies 

It was not until 2011 when other rival crypocurrencies emerged partly due to bitcoin’s increasing popularity. Currently there are over 1,000 cryptocurrencies in circulation with new ones frequently appearing.