If you’re here, you’ve heard of Bitcoin. It has been one of the biggest frequent news headlines over the last year or so – as a get rich quick scheme, the finish of finance, the birth of truly international currency, because the end of the planet, or as a technology that has improved the world. But what’s Bitcoin?
In short, you can say Bitcoin is the first decentralised system of money used for online transactions, but it is going to be useful to dig a little deeper.
We all know, in general, what ‘money’ is and what it really is used for. The most significant issue that witnessed in money use before Bitcoin relates to it being centralised and controlled by way of a single entity – the centralised bank operating system. Bitcoin was invented in 2008/2009 by an unknown creator who goes on the pseudonym ‘Satoshi Nakamoto’ to create decentralisation to money on a worldwide scale. The idea is that the currency could be traded across international lines without difficulty or fees, the checks and balances would be distributed over the entire globe (instead of just on the ledgers of private corporations or governments), and money would are more democratic and equally accessible to all or any.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency generally, was were only available in 2009 by Satoshi, an unknown researcher. The reason for its invention was to resolve the problem of centralisation in the usage of money which relied on banks and computers, an issue that many computer scientists weren’t happy with. Achieving decentralisation has been attempted because the late 90s without success, so when Satoshi published a paper in 2008 providing a remedy, it was overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for internet users and has given rise to a large number of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made through a process called mining. Exactly like paper money is manufactured through printing, and gold is mined from the bottom, Bitcoin is established by ‘mining’. Mining involves solving of complex mathematical problems regarding blocks using computers and adding them to a public ledger. When it began, a straightforward CPU (like that in your home computer) was all one had a need to mine, however, the amount of difficulty has increased significantly and today you will need specialised hardware, including high end Graphics Processing Unit (GPUs), to extract Bitcoin.
How do I invest?
First, you will need to open an account with a trading platform and create a wallet; you can find some examples by searching Google for ‘Bitcoin trading platform’ – they generally have names involving ‘coin’, or ‘market’. After joining one of these brilliant platforms, you click on the assets, and then select crypto to choose your desired currencies. There are a lot of indicators on every platform that are quite important, and you should make sure to observe them before investing.
Simply buy and hold
While mining is the surest and, in a way, simplest way to earn Bitcoin, there is too much hustle involved, and the expense of electricity and specialised computer hardware makes it inaccessible to most of us. To avoid all this, make it possible for yourself, directly input the amount you want from your own bank and click “buy’, then sit back watching as your investment increases in line with the price change. That is called exchanging and takes place on many exchanges platforms available today, having the ability to trade between many different fiat currencies (USD, AUD, GBP, etc) and different crypto coins (Bitcoin, Ethereum, Litecoin, etc).
If you are familiar with stocks, bonds, or Forex exchanges, you then will understand crypto-trading easily. You can find Bitcoin brokers like e-social trading, FXTM markets.com, and many others that you can pick from. The platforms present you with Bitcoin-fiat or fiat-Bitcoin currency pairs, example BTC-USD means trading Bitcoins for U.S. Dollars. Keep your eyes on the purchase price changes to find the perfect pair according to price changes; the platforms provide price among other indicators to give you proper trading tips.
Bitcoin as Shares
There are also organisations setup to allow you to buy shares in companies that spend money on Bitcoin – these companies do the back and forth trading, and you simply invest in them, and wait for your monthly benefits. These companies simply pool digital money from different investors and invest with the person.
Why should you spend money on Bitcoin?
As you can see, buying Bitcoin demands you have some basic knowledge of the currency, as explained above. As with equipment , it involves risk! The question of if to invest depends entirely on the individual. However, if I were to give advice, I would advise and only investing in Bitcoin with grounds that, Bitcoin keeps growing – although there has been one significant boom and bust period, it really is highly likely that Cryptocurrencies as a whole will continue to increase in value over the next 10 years. Bitcoin is the biggest, and most well known, of all the current cryptocurrencies, so is a good place to begin, and the safest bet, currently. Although volatile in the short term, I suspect you will discover that Bitcoin trading is more profitable than most other ventures.