50 Cent is teaching the world how to stunt again.
The mogul is now a bitcoin millionaire, thanks to a forgotten investment that steadily grew to at least $7 million over just a few years, TMZ reported. But what exactly is bitcoin?
It’s a type of digital currency or cryptocurrency used for online transactions such as buying clothes or other merchandise. But there are no banks involved in these transactions because people can buy bitcoins and directly use them to get stuff.
There a number of ways to buy or get bitcoins: Folks can first purchase and sell bitcoins on online marketplaces or “bitcoin exchanges” such as Coinbase. Buyers and sellers use different currency to do their exchanges. Second, folks can also give away or transfer bitcoins to other people using mobile apps: These exchanges are like sending cash digitally. Third, people can “mine” bitcoins, meaning create and compete for them by solving complicated math puzzles online. Winners are rewarded a certain number of bitcoins every few minutes, according to this CNN infographic.
It’s important to note that bitcoin transactions are done anonymously: names of buyers and sellers are never publicly known. Transactions are only recorded in a public log or blockchain.
Bitcoins can also be bought or acquired as part of an investment, as each is worth a specific dollar amount that fluctuates with time. Once brought or received, this kind of currency is stored in a “digital wallet,” existing in a cloud or on someone’s computer. Folks can think of this “wallet” as a virtual bank account that allows them to do several things: send and receive bitcoins, purchase merchandise and save money.
The riches, like the millions that 50 made, came from receiving bitcoins as payment for his 2014 Animal Ambition album, according to TMZ. 50 Cent, who was the first rapper to accept bitcoins, got paid in bitcoins for each album. Fans purchased the album for a fraction of a whole bitcoin, which was valued at $662 each at the time. He pulled in 700 bitcoins in sales, equal to $400,000. Then, he let the money accumulate like an investment.
As of now, 50 has made $7 to $8.5 million off of bitcoin sales, with each digital coin currently worth between $10,000 to $12,000. In other words, 50 is sitting on big bank. Folks might want to take a page from his playbook.
Though Bitcoin was created in 2009, it is still a new phenomenon for many people. However, several famous folks have endorsed bitcoins aside from 50: Jay-Z, Nas, T.I. and more. With its rising popularity, there will be more people getting into the bitcoin game in the near future.