If you’re here, you’ve heard of Bitcoin. It has been one of the primary frequent news headlines during the last year or so – as a get rich quickly scheme, the end of finance, the birth of truly international currency, as the end of the planet, or as a technology which has improved the world. But what is Bitcoin?
In short, you could say Bitcoin may be the first decentralised system of money useful for online transactions, but it is going to be useful to dig a bit deeper.
We all know, generally, what ‘money’ is and what it really is used for. The most important issue that witnessed in money use before Bitcoin relates to it being centralised and controlled by way of a single entity – the centralised banking system. Bitcoin was invented in 2008/2009 by an unknown creator who goes on the pseudonym ‘Satoshi Nakamoto’ to bring decentralisation to money on a global scale. The idea is that the currency could be traded across international lines with no difficulty or fees, the checks and balances will be distributed over the entire globe (rather than 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 solve the issue of centralisation in the use 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, when Satoshi published a paper in 2008 providing a solution, it was overwhelmingly welcomed. Today, Bitcoin has turned into 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 made through printing, and gold is mined from the bottom, Bitcoin is created 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 level of difficulty has increased significantly and now you will require specialised hardware, including top quality Graphics Processing Unit (GPUs), to extract Bitcoin.
How do I invest?
First, you must open an account with a trading platform and create a wallet; you can find some examples by searching Google for ‘Bitcoin trading platform’ – they often have names involving ‘coin’, or ‘market’. After joining one of these platforms, you go through 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 ways, simplest way to earn Bitcoin, there is an excessive amount of hustle involved, and the cost of electricity and specialised computers makes it inaccessible to many of us. To avoid all this, make it possible for yourself, directly input the total amount you want from your bank and click “buy’, then relax and watch as your investment increases in line with the price change. That is called exchanging and occurs on many exchanges platforms on the market, with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc) and different crypto coins (Bitcoin, Ethereum, Litecoin, etc).
If you are acquainted 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 more that you can choose from. The platforms offer you 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 get the perfect pair according to price changes; the platforms provide price among other indicators to provide you with proper trading tips.
Bitcoin as Shares
There are also organisations setup to allow you to buy shares in companies that invest in Bitcoin – these companies do the back and forth trading, and you just invest in them, and await your monthly benefits. These businesses 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 which you have some basic knowledge of the currency, as explained above. Much like all investments, it involves risk! The question of whether or not to get depends entirely on the individual. However, if I were to give advice, I would advise and only investing in Bitcoin with a reason that, Bitcoin keeps growing – although there’s been one significant boom and bust period, it is highly likely that Cryptocurrencies all together will continue to upsurge in value over the next 10 years. Bitcoin is the biggest, & most well known, of all current cryptocurrencies, so is an excellent place to begin, and the safest bet, currently. Although volatile for a while, I suspect you will find that Bitcoin trading is more profitable than most other ventures.