It’s all about the bitcoins, baby — at least in 2014 it’s been sometimes about the online-only currency as it’s taken the leap from Deep Web to campus cash. If you’ve found yourself Googling, Yahooing or Ask Jeeves-ing “what the heck is bitcoin?” or “wait, is it ‘a bitcoin’?” we have a cheat sheet for you that might answer at least a couple of your burning Qs. Or get you asking even more, because we like that sort of stimulating convo around here.
Are bitcoins money?
Yes, bitcoin is a virtual currency! You can buy things with it. Not all things, a lot of things and way more things than you could as recently as last year.
So… bitcoin is a coin?
Bitcoin, the proper noun, is the payment network and bitcoin (lowercase style) is the unit of digital currency. Don’t let the picture we used here fool you, bitcoins can’t get stuck at the bottom of your purse or between the cushions of your couch.
How does the government feel about bitcoins?
Well, not great. They’re not involved with Bitcoin, which is decentralized and not controlled, created, or regulated by them or any central body. Instead, the currency is controlled by those who have it and use it. You can buy bitcoins on different websites by wiring money to someone else who has bitcoins, and you can sell them the same way. Once you’re flush with the dot com dough, you can stash your bitcoins in an “online wallet” on a secure third-party site.
Wait, isn’t bitcoin bad?
No, it just used to be an underground currency used to buy often bad things off of Silk Road, an illegal online marketplace. But now that the currency is reaching a mainstream audience, it also wants to clean up its rep. Here are a few things that might make Bitcoin seem more normal:
There Are Bitcoin Debit Cards: Xapo is a company that gives you an online vault to store your bitcoins and now they’re offering up a way for you to take your bitcoin wallet offline and purchase things in your day-to-day. Like… coffee, groceries — anything you would normally buy with plastic.
There Are Bitcoin ATMs: If you already have the virtual money, you can visit a bitcoin ATM that lets you use your bitcoin stash to take out cash. There aren’t that many and none in the US yet but a Canadian bitcoin ATM saw 81 transactions in its first day. Not too shabby.
There Are (Well, Could Someday Be) Bitcoin Pricetags: One designer-hacker set out to solve the problem of bitcoins’ changing rates. If the currency becomes as popular as the USD, we could see these pricetags on merchandise displaying a value that changes in real time.
Every MIT Student Gets $100 in Bitcoins: Remember “Campus Cash”? This is different. It does not come from your mom and isn’t only good for the best dorm caf’s pasta bar or sweatshirts with your logo on them. In the hopes of jumpstarting the bitcoin ecosystem, undergraduates at MIT will be given $100 worth of bitcoins this fall in a project led by a student and funded in part by an MIT alum.
You Can Survive on Bitcoins Alone: At least for a week. Forbes staffer Kashmir Hill tried out the experiment last year and couldn’t pay rent or feed herself every day. A year later and it’s a lot easier to survive. And survive well — her bitcoin-funded adventures this time around include Stumptown cold brew coffee at breakfast and a wine tour on the weekend.
Politicians Can Collect Bitcoins: This is not a House of Cards Season 3 subplot, but it might be. The Federal Election Commission will allow political committees to accept bitcoin donations in federally regulated campaigns.
There Is an Expedia For Bitcoins: From limos to nice hotels, you can book a pretty luxe little vacay using only bitcoins. Website Travel for Coins lets you book an entire trip through Expedia using the virtual currency and sites like cheapair.com accept them as well.
The more you know, right?
What questions do you have about bitcoins? Did this help at all!? Sound off below!
Lisa Raphael
In her past professional lives, Lisa has served the masses as the Editorial Director at Brit + Co, Bieber Whisperer at J-14, Golden Girls Fan Club Prez at Lifetime and Talk Show Host Understudy to Katie Couric. Now, she's taking on the sports world at The Relish, teaching Hairography 101 in her spare time and will forever be trying to fill the hole Zayn Malik left in her heart.
FAQs
Bitcoin (BTC) definition
How much is $1 Bitcoin in US dollars? ›
Is Bitcoin real money? ›
As Bitcoin has also become accepted as a medium of exchange, stores value, and is recognized as a unit of account, it is considered money.
What is Bitcoin everything you need to know? ›
Unlike fiat currency, bitcoin is created, distributed, traded, and stored using a decentralized ledger system known as a blockchain. Bitcoin and its ledger are secured by the number of participants in its network and in the way the system confirms and verifies transactions.
How does getting money from Bitcoin work? ›
Use an exchange to sell crypto
Coinbase has an easy-to-use “buy/sell” button and you can choose which cryptocurrency you want to sell and the amount. You'll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase.
How much would $500 in Bitcoin be worth today? ›
The current 500 USD to BTC exchange rate is 0.00846141 BTC and has increased by 10.48% over the past 30 days. The USD to BTC price chart indicates the historical change of 500 USD in BTC over the past 30 days.
How to convert Bitcoin to cash? ›
A: You can cash out Bitcoin through exchanges like Coinbase, Kraken, or Binance by linking your bank account, or use Bitcoin ATMs for direct conversion to cash. Smaller exchanges like HODL HODL, and decentralized finance applications, offer other cash-out methods.
How does Bitcoin work for beginners? ›
A bitcoin, at its core, is a token representing value. The token is digital (or virtual), and your public key is used to assign it to you. Ownership is transferred when transactions are made to another person's public key. You use your wallet, the mobile application, to send or receive bitcoin.
Why use Bitcoin instead of cash? ›
If used correctly, Bitcoin can be used as an anonymous currency free from spying governments. When you use Bitcoin, you don't need to provide your email, name, social security number, or any other identifying information. Bitcoin is just numbers, 1's and 0's, traveling through the internet.
Is Bitcoin the same as cash? ›
You can withdraw cash at certain locations, like a bank branch or an ATM. But sometimes there can be restrictions, like banks closing on weekends or ATM withdrawal limits. Cryptocurrencies are digital only, so you'll never actually hold a bitcoin in your hand like you would a $20 bill.
In some cases, the purchased bitcoin will be released from escrow directly to the Bitcoin wallet of your choosing. In other cases, it will first be sent to your peer-to-peer platform account wallet (which is typically a custodial web wallet). In that case, you'd then want to withdraw it to a Bitcoin wallet you control.
How much Bitcoin should a beginner? ›
Some experts recommend investing no more than 1% to 5% of your net worth. When looking at how much of your portfolio to invest in crypto, limiting your overall exposure to crypto is crucial. It's important to never invest more than you can afford to lose.
How many people own 1 Bitcoin? ›
However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.
Can you make $100 a day with crypto? ›
You can make $100 a day trading crypto by trading —
Each of these has its own advantages and disadvantages. Spot markets offer the least amount of risk as you only stand to lose the percentage the market moves at.
What happens if you invest $100 in Bitcoin today? ›
If you invest $100 into Bitcoin today, don't expect to make a fortune. However, you could still make some solid gains if your bet on Bitcoin pays off. Many people who are interested in crypto would like to get started with smaller amounts, which is entirely reasonable given that cryptocurrencies are risky investments.
How long does it take to get money from Bitcoin? ›
Bitcoin's transaction times can vary greatly, ranging anywhere from ten minutes to one day. However, it will usually take between thirty minutes and two hours to complete the process. It is worth keeping in mind that the average transaction time tends to be around one hour.
How much is $300 US dollars in Bitcoin? ›
How much is $100 dollars in Bitcoin right now? ›
Latest USD to BTC Converter Rate
The current price of 100 US Dollar in Bitcoin is 0.00167992 BTC.
How much is $100 Bitcoin worth right now? ›
100 BTC to USD Chart — Historical price of Bitcoin expressed in USD. The current 100 BTC to USD exchange rate is 5.92M USD and has decreased by -9.60% over the past 30 days. The BTC to USD price chart indicates the historical change of 100 BTC in USD over the past 30 days.
How much is $20 USD in Bitcoin? ›
Convert US Dollar to Bitcoin
| USD | BTC |
|---|
| 20 USD | 0.00033796 BTC |
| 50 USD | 0.00084490 BTC |
| 100 USD | 0.00168979 BTC |
| 200 USD | 0.00337959 BTC |
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