Bitcoin is a digital currency that uses cryptography to control and facilitate its creation and management. This is the mode of management allows bitcoin to operate as a decentralized currency meaning there are no single central authorities that controls it. The debut of bitcoin was in 2009, shortly after the economic meltdown that saw some major companies in finance close shop and others nursing deep liquidity wounds. Satoshi Nakamoto is the presumed genius behind bitcoin and the robust blockchain technology that this digital currency runs on. Bitcoin and the blockchain technology, in general, have gained much traction in a relatively short span of time. While this was probably not expected, the success of bitcoin this far can be pegged on the various attractive features of this digital currency.
For starters, unlike conventional currency sending bitcoin from one address to another is immediate. Furthermore, the transfer fee for bitcoin is insignificant compared to the charge incurred transferring conventional currency. Additionally, bitcoin is gradually being accepted as a universal currency allowing its use anywhere across the globe. Considering that there is no central authority in charge of managing bitcoin, it is generated through a process known as mining. This is a complex process that harnesses sophisticated software and powerful computers. Real mining consumes a lot of electricity, and besides that, the general cost of mining is very high. This is the key barrier to entry in real mining. However, individuals interested in mining can engage in cloud mining which is much more affordable.