Bitcoin, Bitcoin, Bitcoin. You’re hearing it everywhere these days, aren’t you? Whether it’s CNBC, The Wall Street Journal or The New York Times, everyone these days seems to be talking about the huge increase in Bitcoin’s value and the potential for long-term growth.
But aside from the amazing returns that investors have seen in 2017, have you ever taken a closer look at exactly what the technology is all about? Most people don’t know much about Bitcoin aside from the fact that it’s “digital cash”. The reality is that Bitcoin bears very little resemblance to “money, as we know it”.
So, now seems like a great time to share 2 facts about Bitcoin that will blow your mind!
1. Your Bitcoin wallet does not contain Bitcoin, and it will never contain Bitcoin.
When you purchase Bitcoin on Coinbase and then send it to your own wallet application, no Bitcoin is actually moving through the Internet. Coinbase never actually holds any Bitcoin, and neither do you.
Wait a minute — so what exactly am I buying here? How does this work?
All of the world’s Bitcoin exists inside of one giant ledger. The technical name for this ledger is the blockchain.