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    What is Bitcoin, how to buy or mine coins, and why does it ever peak at the highest price?

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    The cryptocurrency world is buzzing with excitement as Bitcoin has hit its all-time high this week! The digital currency that was launched in 2009 has now skyrocketed to an impressive £47,000 for a single Bitcoin. Can you believe that’s more than ten times its value from just over a year ago, on March 13th, 2020, when it was valued at around £4,200? If you’re a beginner investor with questions about Bitcoin, don’t worry, we’ve got you covered! Check out Express.co.uk for all the details on what Bitcoin is, how to buy, and more. Happy investing!

    BITCOIN: WHAT IS BITCOIN? How Do You Buy Bitcoin?

    Bitcoin is a digital currency created in 2008 by an unknown individual or group of people under the name ‘Satoshi Nakamoto’. Its value has fluctuated greatly over the years, experiencing a peak in December 2017 when it reached almost £15,000 per Bitcoin, and then dropping to around £2,500 the following year. However, in 2020 and into 2021, Bitcoin prices have surged to unprecedented levels once again.

    If you’re a beginner to Bitcoin and looking to make a purchase, there are several steps you need to follow. As explained by FortuneBuilders you need a secure internet connection, bank account info, and identity documents.

    You need to join a Bitcoin exchange like Coinbase or Bitfinex to buy Bitcoin. Your purchased Bitcoins are stored in either a hot wallet, managed by an exchange or provider like Electrum, or a cold wallet like a USB stick, such as Trezor or Ledger Nano. After linking your wallet to a bank account, you can then use your purchased Bitcoin to buy items online from retailers that accept Bitcoin or hold onto it in the hope that its value will increase.

    BITCOIN: WHAT IS BITCOIN MINING?

    Bitcoin mining generates new virtual coins. Mining software can be downloaded for free, but it is not an easy process. Bitcoin was encrypted to ensure a finite number of digital coins. Successful mining requires guessing a random number generated every 10 minutes, with increasingly complex calculations over time. Mining pools can help miners pool their resources for rewards. However, rewards are distributed differently depending on the mining pool.

    BITCOIN – WHY IS BITCOIN PRICE EVER THE HIGHEST?

    Bitcoin’s value can fluctuate, but there is only a limited amount available. Once all 21 million Bitcoin are mined, there will be no more. Factors such as growing adoption and Tesla’s investment have contributed to price increases, and experts predict Bitcoin will break the $100,000 ceiling this year.

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    Neela
    Neela
    Neela Josh is the Content Writer at Gaming Ideology. A professional-level Quake player, Neela shares her expertise and passion for gaming to engage and inform the gaming community.