More About Bitcoin

So my Bitcoin purchase is still pending. It takes awhile. You can see from the graphic that I bought in for $100 when the value of a Bitcoin was $11,757.11. But that was way back in the day (I think it was Tuesday).

I don’t know if it is connected, but my research showed that the process of mining Bitcoin is an electronic venture and it uses a ton of electricity. As I understand it (which in the end may prove to be wrong, confusing, and a threat to the global economy), there are 21 million bitcoins and to get one you have to “mine” them electronically by solving math problems ever-increasing in their difficulty. The reward is a Bitcoin. So, I am guessing that the company I am going through to get my bit of Bitcoin is doing the mining and is then rewarded by gaining a share into Bitcoin. They then offer me an opportunity to invest in their Bitcoins. (There’s also something about “block chains” and a diabolical plan to take over Kokomo, Indiana. That last part I’m fuzzy about!)

The other concern about Bitcoin is the amount of energy (electricity) it takes for computers to mine the Bitcoin. Critics add up the proposed amount and compare it to the amount whole countries use. This seems like a typical counter argument to capitalism. My guess is that while the energy is massive it does not fall on one economy because it is decentralized. So, I don’t see energy costs being a threat when there is money to be had. Here’s a link to a journalist that stays on top of Bitcoin.

Anyway, Bitcoin has increased this week from $9,540.46 to $15,970.42 as of four seconds ago.

Categories: Bitcoin

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