Bitcoin is a digital currency that is not regulated by any government or organization. It was created in 2009 by a person using the alias Satoshi Nakamoto, and has since been traded online without going through any bank or clearing house. Bitcoin can be bought with traditional money from an exchange provider, but it can also be earned through competitive mining. In this article we will discuss what Bitcoin is, why people love it and how to buy Bitcoin!
Table of content
- What is Bitcoin and how does it work
- Why people love Bitcoin
- How to buy Bitcoin
- The risks of investing in Bitcoin
- Pros and cons of investing in Bitcoin
- Final thoughts on buying bitcoin
1. What is Bitcoin and how does it work?
Bitcoin is a cryptocurrency, also known as crypto money or digital currency. It works just like regular money except that you can trade it online and no one controls the supply of Bitcoin. The value of Bitcoin goes up when people invest in it – just like shares go up in value over time if they’re successful companies. If more investors want to buy Bitcoin, the cost of each one will increase.
Is it really anonymous?
Bitcoin is not completely anonymous – but it does offer a level of privacy that regular money can’t match. When you use your card or bank account to pay online for example, the merchant (or whoever they pass on your details) often has all your personal information – your full name, address and contact details. When you pay with Bitcoin the only people who can see your transaction are you and whoever else is involved in it (for instance if someone sends money to your public wallet or requests payment for a service).
Is this legal?
Yes, but that doesn’t mean everywhere accepts Bitcoin. As it’s a relatively new type of currency, the laws and regulations around Bitcoin aren’t as well defined or established as those for regular money. This means that some people will try to take advantage of this lack of regulation – like criminals who sell drugs online using Bitcoin (because they can make their transactions anonymous).
2. Why people love Bitcoin
Why people love Bitcoin? The world of cryptocurrency. This is how it all went down in the past few years: Satoshi Nakamoto, a computer programmer or programmers under an alias released his invention called bitcoin to the general public back in 2009 (wikipedia). Then almost immediately after its release it gained popularity and more developers started working on the project. The value of bitcoin also started rising, and it’s been skyrocketing ever since (coinmarketcap).
Bitcoin is gaining popularity at a very fast rate with every passing day. It has emerged as an extremely popular online currency that everyone seems to be talking about lately; this cryptocurrency isn’t associated with any financial institution as it’s not regulated by the government. There is no transaction fee involved when making a bitcoin transfer, and you can make transactions from one country to another without worrying about cross-border fees (bitcoin). Also, using bitcoins makes your identity hidden during a transaction which adds an extra layer of security for those who buy something online (bitcoin).
Still not sure if you should get into the cryptocurrency game? Here are some other advantages that come with using bitcoin:
- Bitcoins can be transferred to your bank account in just a few minutes. It’s also very easy and fast to transfer bitcoins between users without any middleman involved, which makes it much safer than other online payment systems (bitcoin).
- Bitcoins are designed to be finite. There will only ever be 21 million bitcoins in existence, which is a lot less than the trillions of dollars that make up our current system (bitcoin). This makes bitcoin more attractive as an asset since it can hold its value over time; unlike paper currency which has no real value and can be easily destroyed (bitcoin).
- Bitcoins are completely transparent. Because the blockchain ledger is public anyone can see bitcoin transactions taking place, but your identity remains anonymous (blockgeeks). This transparency makes it extremely difficult for governments to halt or even regulate bitcoins as there is no central source that they could target.
- You don’t have to pay any fees when you transfer bitcoins, and it’s also very easy to set up (bitcoin).
- It is one of the safest investments available since its value continues to grow time after time. If this trend follows suit then we could expect bitcoin values to continue growing exponentially in 2018/2019! And best yet you can purchase portions of a bitcoin; it’s divisible up to eight decimal places (bitcoin).
- Bitcoins cannot be counterfeited thanks to its cryptographic structure (blockgeeks). This means that no one else but you has access to your bitcoins and they will not be lost if the system crashes. The market is still extremely volatile, but it’s a great investment opportunity that you should not miss out on!
- Bitcoin is by far the safest and most transparent option available. We do recommend staying away from any other cryptocurrency for now, as their values are still extremely volatile (bitcoin). Just like with anything else in life please stay safe when using bitcoins; don’t share your private key with anyone and always double check the recipient’s address to avoid any mistakes.
3, How to buy Bitcoin
There is a high demand for Bitcoin, and as such the price has gone up significantly. The value of one bitcoin was $200 in January 2013; it rose to over $1000 by November 2013. Today, bitcoins cost about half that much (in USD). It’s important to note that there are no actual coins involved in the process of buying bitcoins.
The cryptocurrency’s name is derived from the use of cryptography to secure transactions.
- One way to obtain bitcoins is through a bitcoin exchange, which are online platforms that allow users to buy and sell bitcoins using different currencies. There are many exchanges including Coinbase (in The States), CoinMama (international) and BitPanda (in Europe). Like with the stock market, you should do some research before choosing an exchange.
- Another way to purchase bitcoins is through a direct trade with another person via websites like LocalBitcoins or Mycelium. Bitcoins are stored in virtual wallets and there are many options out there for those looking to store their money safely including Coinbase (US only), CoinKite, Xapo and Blockchain.
The cryptocurrency is a big part of the financial world now with millions invested in Bitcoin-related companies as well as mining operations around the globe. In fact, lots of people are becoming millionaires overnight thanks to this exciting new currency!
4. The risks of investing in Bitcoin
Bitcoin is an experimental currency which has no intrinsic value. The real price for this digital money is based only on the belief that other people will buy it later for more than you paid today. If anything, its current surge might be a sign that there are growing number of investors who expect to profit from future price hikes.
Bitcoin is a high-risk investment for those who buy it, as the value of the cryptocurrency still has significant volatility and can be affected by external market forces such as government regulations or interventions from major financial institutions. Of course, this doesn’t mean that Bitcoin will not continue to grow in popularity; however, there’s no guarantee that its value will continue to skyrocket.
Bitcoin can also be a high-risk investment for those who sell it, as the cryptocurrency is still unregulated and transactions are irreversible once they have been confirmed in an electronic transaction log known as a blockchain. This means that if you accept bitcoins from clients or customers, you cannot do anything about it if the cryptocurrency never shows up again. In fact, this is already happening to a number of early adopters who have found out that their bitcoins are worth much less than they had expected – or nothing at all.
That said, there’s still opportunity for success with Bitcoin if you’re willing to take the risk and buy low before it rises even higher. However, it might be a good idea to wait for an official announcement from the government or some major financial institutions before making any decisions regarding your investment in Bitcoin.
5. Pros and cons of investing in Bitcoin
Bitcoin is a new type of digital currency that has recently exploded in popularity.
Pros and cons of investing in Bitcoin *It’s decentralized, meaning there isn’t any one person or entity controlling it – the network is run by its users.
Pros and cons of investing in Bitcoin *You can buy Bitcoins through exchanges or by using a Bitcoin ATM.
Pros and cons of investing in Bitcoin *There are some potential disadvantages that you should be aware of before deciding to invest in Bitcoins: Pros and cons of investing in Bitcoin *Bitcoin is not an official currency – it’s unregulated, meaning there aren’t any laws governing its use or protecting your investment if something goes wrong.
Pros and cons of investing in Bitcoin *It’s not backed by any central government, meaning its value is completely determined by the market.
Pros and cons of investing in Bitcoin *If you lose your Bitcoins or they are stolen from you, there will be no way to recover them! Pros and cons of investing in Bitcoin
6. Final thoughts on buying bitcoin
Final thoughts on buying bitcoin.*What will be the price of Bitcoin in 2021? *The honest truth: nobody knows. The last year has been a rollercoaster ride for investors and it’s left many people frustrated and exhausted. There were times when we felt like we’d never see $5000 again, then suddenly at the end of November 2017 it seemed that every other headline was about Bitcoin’s price increase. We’re still waiting for this year to end and see how the market will move in 2018, but there are a few things we can take into consideration that might give us an idea of where it could go from here;
-The number of users on various exchanges has increased exponentially over the past couple years as people become more and more aware of the cryptocurrency space.
-The number of transactions per day has also increased exponentially over the past couple years, suggesting that there is a growing userbase. In addition to this, we have seen an increase in the average transaction size as well which means people are actually using Bitcoin for larger purchases such as cars or houses rather than just small ones such as coffee or lunch.
The number of active wallets has also increased which shows that people are using the cryptocurrency more and not just holding onto it for speculative purposes, but actually spending and trading with it too.
-When we consider all these factors together, we can see a positive trend in demand growing over time, which will lead to a higher price of Bitcoin in the long run.
-There is always some resistance and support level which you can use as guidance, but it’s important not to get overly fixated on these numbers or you’ll drive yourself mad! *Can I buy and hold for years to come, or should I buy and sell as soon as possible? *These are two totally different strategies and each one is dependent on your personal financial situation. A lot of people in this space will tell you that the only strategy that works is to hold onto something for years, but if we’re being honest with ourselves it’s extremely unlikely that a cryptocurrency investor who bought Bitcoin at $500 would still be holding onto it today.
-If you bought at $500 and held for years, how many would have sold or traded long before now? We’d guess most of them! Most people reading this blog post will be here because they’ve heard about the huge returns that cryptocurrencies are capable of generating over a short period of time, so why wouldn’t you want to trade and take advantage of that?
-If you look at any chart of a cryptocurrency, the more up and down it is over time, the better chances there are for making money. Once we start seeing smooth lines on our charts where everything goes in one direction without too much volatility, then we need to be very cautious as this is typically when the market is mature and it’s much harder to make money.
-The big thing to take away from this article is that you should never just assume something will happen in one direction or another without doing your own research. The cryptocurrency space moves incredibly fast, so if someone tells you they know what Bitcoin or any other coin will do without any evidence, then it’s more likely they’re just trying to sell you something.
-We can’t stress enough how important it is that you do your own research into the market before making moves on your investments. Yes, there are people who have made money by buying and holding for years without doing anything else (just like with traditional stocks), but it’s also important to realize that this is a risk and the more time you spend learning about cryptocurrency, trading strategies, etc. means the better your chances are of making money over time.
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