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Released as an open-source software in 2009, Bitcoin is often credited as the world's first cryptocurrency and is best defined as a digital currency that only exists electronically. Bitcoin is decentralized, meaning it doesn't have a central issuing authority or political institution that controls the amount of bitcoin in circulation. But the Bitcoin platform is far from anarchy.Instead of relying on a government to print new currency, Bitcoin'sblockchain programming handles when bitcoins are made and how many are produced. It also keeps track of where bitcoins are and ensures the transactions are accurate. There are currently about 17 million bitcoins in circulation. There isn't a central regulatory agency or government controlling the supply of bitcoins, meaning the supply is controlled by design. The total supply to ever be created is capped at 21 million bitcoins.

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they'll go up in value.

Why use Bitcoins though?

• It's decentralized and brings power back to the people. Launched just a year after the 2008 financial crises, Bitcoin has attracted many people who see the current financial system as unsustainable. This factor has won the

hearts of those who view politicians and government with suspicion. It's no surprise there is a huge community of ideologists actively building, buying, and working in the cryptocurrency world.
• Freedom. The concept that one could carry millions or billions of dollars in Bitcoin across borders, pay for anything at any time, and not have to wait on extended bank delays is a major selling point.
• Security. Bitcoin payments don't necessarily need to be tied to one's personal information. Since personal information is left out of the transactions, users aren't as exposed to threats such as identity theft. Bitcoin can also be backed up and encrypted to ensure the security of your money.
• Low Transaction Fees. Banks and companies like PayPal charge to send and receive money. Bitcoin replaces the 2.5% "transaction fee" with one that's only a fraction of that. For all its advantages, Bitcoin does still pose some significant issues.
• Legal Gray Area. Major governments have largely remained on the sidelines, and this has created both a sense of potential and apprehension for Bitcoin proponents and critics respectively. Bitcoin isn't backed by a regulatory agency and a government would technically be ceding power by supporting a decentralized currency.
• Illiquidity. This is mostly moot due to Bitcoin's $47 market cap but it still makes users sweat. It's highly unlikely that Bitcoin's price would plummet and you'd be unable to take action, but it's still unsettling. As more investors invest, however, illiquidity becomes a negligible risk, as there will likely always be a buyer for Bitcoins waiting.
• Volatility. Users that look at Bitcoin as a speculative investment option are essentially gambling on the process, and the future price of Bitcoin is largely unknown. There are estimates that Bitcoin will both be worth pennies in a few years, while some predict that a single bitcoin will be worth $500k in three years. As new investors continue to invest and the market cap grows, Bitcoin's price could become more stable.
• Lack of adoption by businesses. The price volatility is a large reason that many businesses have yet to adopt Bitcoin as a form of payment. Increased consumer adoption and price stability will eventually mitigate this disadvantage.
• Another disadvantage is that while many people have heard of Bitcoin, few understand exactly what it is or how it functions. Guides like this help to push the needle and build a foundation, but it's ultimately on the users to seek out more information.

Bitcoin paints a future that is drastically different from the fiat-based world today. This is either exciting or unsettling for the vast majority. Equip yourself with the best possible resources. Become active in communities that further explore not only the technical applications of Bitcoin and other cryptos but with their overall potential to disrupt virtually every market. Brace yourselves. Cryptos are coming.