If you’re here, you’ve heard of Bitcoin. It has been one of the primary frequent news headlines during the last 12 months – 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 that has improved the world. But what’s Bitcoin?
In short, you can say Bitcoin is 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, 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 by the pseudonym ‘Satoshi Nakamoto’ to create decentralisation to money on a global scale. The theory is that the currency can be traded across international lines with no difficulty or fees, the checks and balances would be distributed across the entire globe (rather than just on the ledgers of private corporations or governments), and money would become more democratic and equally accessible to all.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency in general, was started in 2009 by Satoshi, an unknown researcher. The reason for its invention was to solve the problem of centralisation in the use of money which relied on banks and computers, an issue that many computer scientists weren’t pleased with. Achieving decentralisation has been attempted because the late 90s without success, when Satoshi published a paper in 2008 providing a remedy, it was overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for internet surfers and has given rise to a large number of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made by way of a process called mining. Just like paper money is made through printing, and gold is mined from the ground, 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 simple CPU (like that in your house 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 need to open a merchant account with a trading platform and develop a wallet; you can find a few examples by searching Google for ‘Bitcoin trading platform’ – they generally have names involving ‘coin’, or ‘market’. After joining one of these platforms, you go through the assets, and then select crypto to select your desired currencies. There are a great number of indicators on every platform which are quite important, and you should make sure you observe them before investing.
Simply buy and hold
While mining is the surest and, in ways, simplest solution to earn Bitcoin, there is too much hustle involved, and the expense of electricity and specialised computers makes it inaccessible to most of us. To avoid all this, make it possible for yourself, directly input the total amount you want from your own bank and click “buy’, then sit back watching as your investment increases based on the price change. This is called exchanging and occurs on many exchanges platforms available today, having the ability to trade between a variety of fiat currencies (USD, AUD, GBP, etc) and various crypto coins (Bitcoin, Ethereum, Litecoin, etc).
If you are familiar with stocks, bonds, or Forex exchanges, you then will understand crypto-trading easily. There are Bitcoin brokers like e-social trading, FXTM markets.com, and many others that you can pick from. The platforms give you Bitcoin-fiat or fiat-Bitcoin currency pairs, example BTC-USD means trading Bitcoins for U.S. Dollars. Keep your eyes on the price changes to get 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 businesses do the trunk 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, investing in Bitcoin demands that you have some routine knowledge of the currency, as explained above. Much like all investments, it involves risk! The question of if to get depends entirely on the individual. However, if I were to provide 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 all together will continue to upsurge in value over the next a decade. Bitcoin is the biggest, and most well known, of all current cryptocurrencies, so is an excellent 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 almost every other ventures.