Bitcoin is a cryptocurrency that many people have heard of, but few understand. Satoshi Nakamoto was the inventor of Bitcoin, but his intention was to create “A Peer-to-Peer Electronic Cash System“.
While Bitcoin was the first and most important cryptocurrency, there are many other types available now, including Litecoin and Ethereum. Because Bitcoin is digital, it is run in “mines” or servers which require quite a bit of energy. Because it is a “peer-to-peer” system, it is organized so each peer has a complete history of all transactions and thus of the balance of every account. Bitcoin hit a record high above $8,200 on Monday, November 20. The surge follows a dismal September, in which the cryptocurrency fell to $2,900 a coin on September 15.
Two years ago, the idea of buying the virtual currency even at that price was laughable. After a rapid rise in value in 2013, the cryptocurrency’s value more than halved by mid-2015. At its lowest point, one bitcoin was equal to about $230. Other cryptocurrencies are hitting major milestones of their own. On Wednesday, Ethereum briefly traded above $500 and Litecoin hit $100 for the first time.
