BITCOIN: What is it and how to make money?

The year of 2009. An unknown person under the pseudonym Satoshi Nakamoto introduced the world to an idea that would revolutionize the financial world. Today, Bitcoin is worth tens of thousands of dollars. In 2010, it was only worth a few cents and was barely enough for a cup of coffee, a hamburger, or some candy. Bitcoin is digital gold to many, to others a financial bubble that may burst one day. Cryptocurrency has become the most controversial financial instrument of our time.

May 2010 saw the first bitcoin transaction when developer Laszlo Hanyecz paid 10,000 bitcoins for two pizzas. Back then, those 10,000 bitcoins were worth about $41. Today, the same amount of bitcoins is worth hundreds of millions of dollars. This day is known as Bitcoin Pizza Day and is celebrated by the cryptocurrency community.

Back to Satoshi Nakamoto. He created Bitcoin in 2008 during the global financial crisis. The main reasons were as follows:

1. To have a monetary system independent of banks and governments;

2. To ensure transparency of financial transactions

3. To exclude the involvement of intermediaries—banks, payment systems—in transactions;

4. Provide an opportunity for safe and fast transactions.

Apart from that, throughout human history, the dollar won as it was considered the most stable monetary unit.