Bitcoin has several characteristics that make it a great form of money.
- Scarcity. By design, there will only be 21 million bitcoins, ever. If you own, say, 1% of all bitcoins today (210,000 bitcoins), you will still own 1% of all bitcoins in a hundred years from now. The same can't be said of the US dollar, since the government continually grows the money supply through inflation. A dollar today is worth 90% less than a dollar in 1920!
- Portability. Traveling with $1 million dollars of bitcoin on your phone is just as easy as traveling with $15 of bitcoin. The same can't be said about sacks of US dollars or heavy bars of gold.
- Divisibility. A single bitcoin can be divided into units of 100 million! If a single bitcoin was worth $1 million, you could still send somebody one cent of value in bitcoin.
- Impossible to counterfeit. It is mathematically impossible to counterfeit a bitcoin. When your wallet confirms that you have received some bitcoin, you can be sure you've received that bitcoin.
- Sovereign. Most important of all — nobody in the world owns or controls Bitcoin. It is a technology that exists on the internet, just like email. You don't have to ask permission to own and use Bitcoin, and nobody can stop you. A bank can freeze your dollars, but nobody can freeze your bitcoin!
Now for the question on everyone's mind, what's bitcoin worth? →
- 1What is Bitcoin?Bitcoin is the internet’s native form of money.
- 2How does Bitcoin work?This is where things get a little tricky, but it’s actually simpler than it seems at first.
- 3What’s special about Bitcoin?Bitcoin has a number of characteristics that make it unique!
- 4What is a bitcoin worth?Just like all assets, Bitcoin is worth whatever the market decides it’s worth.
- 5Should I own some bitcoin?That’s up to you, but here is how some of the world’s most successful people answer that question.
- 6How do I get some bitcoin?You can buy bitcoin with a bank transfer, debit or credit card.
- 7What can I do with my bitcoin?An overview of holding, spending and earning money with your bitcoin.
- 8Frequently Asked QuestionsNow that you know the basics, let’s answer some of the most frequently asked questions.