What the "Bit" is Bitcoin?

By: Preston Jensen

People are making a lot of money from cryptocurrency especially on one, Bitcoin. 

            So, what is Bitcoin?  After asking several people, nobody really had a clear idea of what it was.  When I asked Nick Kinzebach, manager of an auto shop in Cedar Falls, who is an investor in Bitcoin, he said, “I am not really sure, I’ve done some research on it, and all I know is that is computers mining other computers.   22 year-old UNI student Miranda Koch said, “I have no idea what that even is.”  24 year-old Logan Fritz, an employee of Steege’s Meat Market, referred to Bitcoin as, “Mickey Mouse” because he doesn’t think it really exists.  22 year-old UNI student Connor Nolan student said, “It’s computer’s mining software from other computers.”

      
      According to forbes.com, “Mr. Smith”—wanted to keep his first name off the record—made a fortune from investing in Bitcoin.  Smith paid in three thousand dollars when shares were worth fifteen cents a share.  Smith was working for as a software engineer for a large technology company, so he had a good idea of what his investment was in.  Smith has made about twenty-five million dollars.  According to crtyptocurry.com Roger Ver, known as the “Bitcoin Jesus”, has made fifty-two million dollars.  He is the wealthiest Bitcoin investor so far.  He was already a millionaire before investing, so he uses the money to donate to charity.  He was the first person to invest in the Bitcoin startup.  Charlie Shrem has made over forty million dollars.  He started investing into Bitcoin at a very young age.  When he was eleven he founded BitInstant.  BitInstant was a Bitcoin exchange set up in New York.  Dave Nelson struck it rich right from his basement founding the MegaBigPower mining company from there.  He is now worth over thirty million.  Jered Kenna is decided to buy into Bitcoin when they were only worth twenty cents a share.  He eventually created his own Bitcoin mining pool, he is now worth thirty million dollars.  Tony Gallippi founded the company Bitpay which processes payments for Bitcoin.  He is worth twenty million dollars. 

Bitcoin Symbol

          Nick Kinzebach, an investor could be a "bit" more happy with his investment he said, “Yeah, I just wish I would have bought in sooner when the shares were a lot cheaper.”  When asked about investing in the future,  Connor Nolan responded, “Maybe when I have more money, I should have done it when one Bitcoin was super cheap, not almost twenty thousand dollars, but maybe after I graduate and get a job I will be able to.”  Auto mechanic Matt Rogers discussed his plans to start investing and he said, “I am actually using my computer at home to do my own mining, although I haven’t been successful yet. Miranda Koch said, “I have no intention of investing, for one I do not like potentially risky investments, and for two I still have no idea what Bitcoin really is about.”  Logan Fritz said, “You can’t invest in Mickey Mouse”

            According to money.cnn.com Bitcoin is a currency created by an unknown person using the alias Satoshi Nakamoto.  There are no middle men or banks in the transactions.  You can use Bitcoin to purchase certain things such as: hotels on Expedia, furniture on Overstock.com, Xbox games, and many other items.  They can be used to buy things anonymously, because they are untraceable.  They make international payments easier because they are not yet included in most government regulations.  Money.cnn.com goes on to say, “That people compete to “mine” Bitcoins using computers to solve complex math puzzles. This is how Bitcoins are created.”  Someone is rewarded twelve and half Bitcoins about every ten minutes. 

 To get started with Bitcoin, you must first have a Bitcoin wallet.  You can download them from either your computer or phone.  According to money.cnn.com once you download the wallet it is basically like having another bank account.  It allows you to send Bitcoins to other people, buy things, or simply just save them.  Kinzebach said, “It is super easy to get started, I just downloaded the wallet from the app store, and there you go.”  “There are more than one wallets thought some of the have a onetime fee.”

            Bitcoin started off $0.008, and is now worth 16,750 in less than five years.  Who will make their fortune next?