As a tech enthusiast, I have heard a lot about bitcoin. Most people I asked couldn’t really explain how it works, so I decided to do my research and here’s what I found.

What is Bitcoin?

Bitcoin was created in 2008, and it is an online currency that was created by an unknown group or person that goes by the alias-Satoshi Nakamoto. It is open-source software. Bitcoin is virtual money that is stored in a ‘digital wallet’ on your phone or computer.

What is Bitcoin used for?

Merchandise can be bought online using bitcoin, and it can also be used to pay companies for their services, that is if they accept payments in bitcoin. It is preferable because it is hard to track and also because it can be used without being linked to a real identity. But, because it is online, it is easier to steal. This is a red flag for me.

How can you get Bitcoin?

As of today, one bitcoin equals about $10,315. To obtain bitcoin, you can either sell something and be paid in bitcoin or buy it using ‘real’ money. Bitcoin is valuable just like money because people are willing to buy and sell things with it.

Can you buy shares in Bitcoin?

Yes, you can buy shares in bitcoin through stockbrokers and exchanges. But be advised that there are risks in buying digital currency like Dr Ruja’s OneCoin scam that cost over $4 billion in damages. Dr Ignatova Ruja is the culprit of the scam she was a Bulgarian businesswoman who faked a new cryptocurrency that she called OneCoin. She convinced thousands of people to invest in her company and disappeared with all the money. Till date, she has not been sighted. Read more about the scam at https://www.bbc.co.uk/news/stories-50435014

I think bitcoin holds a lot of promise in making our buying and selling accessible, but as I mentioned before, since it is online, it can be hacked and people can lose a lot of money as a result.

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Arinze Okigbo is a 15 years old tech-enthusiast. He writes about tech and how it can help Africa.

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Note: This article has been published in the Global Sentinel newspaper. To read it go to https://globalsentinelng.com/2020/09/26/bitcoin-101-frequently-asked-questions/