Is The Bitcoin Legitimate?
Is The Bitcoin Legitimate? Or Is The World’s First Digital Currency A Risky Investment?
With the first Bitcoin ATM launching in Vancouver on Tuesday, some may question the validity of the digital currency and its efficacy in the modern world. Is this a venture doomed to fail, losing investors thousands if not millions of dollars in the process? Or is Bitcoin an emerging currency free from centralized oversight, high fees and the woes of the current economy?
Launched in 2009, Bitcoin is the world’s “first decentralized digital currency,” according its website, bitcoin.org. The Bitcoin system relies on an algorithm to maintain a steady influx of BTCs created through a process called “mining,” hearkening back to 19th century gold rushes and the ’49ers in California, where a few hard (and lucky) prospectors struck it rich. But unlike the miner and his daughter Clementine, people these days mine digitally through specialized hardware and software, working alone or in pools of people decrypting blocks of data for payoffs of 25 BTCs every 10 minutes. And with current prices of around $210 per BTC, that’s a potential of $5,000 (more or less) from each block.