This relatively new electronic cash technology utilizes open-source software to provide a peer-to-peer payment system. Sometimes referred to as “Digital Currency,” Bitcoins were invented by developer Satoshi Nakamoto (a pseudonym and very common name in Japan) in January of 2009.
“Users can send payments anywhere in the world for a very low transaction fee and this is probably the number one reason why this technology has caught on at such a rapid rate.” comments Javier Loya, CEO of OTC Global Holdings. Many companies now have enough confidence in this new technology that they are offering to accept bitcoins as a form of payment.
BTC is the commonly used shorthand for Bitcoins, and they can be seen in two versions: a physical bitcoin or a digital one. The most common type is the digital bitcoin, which is simply a number that is associated with a Bitcoin Address. It is safely stored in an online digital wallet.
How Many Bitcoins Exist?
Bitcoins spend just like cash but are mined somewhat like gold. Using the algorithm created by Satoshi Nakamoto, miners “discover” and claim available bitcoins. But here’s the interesting part: according to the experts, there are only 21 million bitcoins in existence. Once they are all mined, that’s it! They’re all gone.
Javier Loya of OTC Global Holdings understands the complex world of banking and finance and has a new video. He comments here: “Bitcoins have been taking a beating lately, but we do expect them to recover. There are so many ways that cryptocurrency can help our world.”