If you’re here, you’ve heard about Bitcoin. It has been one of the biggest frequent news headlines during the last year or so – as a get rich quickly scheme, the finish 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 is Bitcoin?
In short, you can say Bitcoin may be the first decentralised system of money used for online transactions, but it will probably be useful to dig a little deeper.
We all know, in general, what ‘money’ is and what it is used for. The most important issue that witnessed in money use before Bitcoin relates to it being centralised and controlled by 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 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 will be distributed over the entire globe (instead of just on the ledgers of private corporations or governments), and money would become more democratic and equally accessible to all or any.
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, a concern 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 had been overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for internet users and contains given rise to thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just 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 simple CPU (like that in your home computer) was all one needed to mine, however, the amount of difficulty has increased significantly and now you will require specialised hardware, including high end Graphics Processing Unit (GPUs), to extract Bitcoin.
How do I invest?
First, you should open an 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 brilliant platforms, you go through the assets, and then select crypto to choose your desired currencies. There are a great number of indicators on every platform which are quite important, and you ought to make sure you observe them before investing.
Simply buy and hold
While mining is the surest and, in a way, simplest solution to earn Bitcoin, there is too much hustle involved, and the cost of electricity and specialised computers makes it inaccessible to many of us. To avoid all of this, make it easy for yourself, directly input the amount you want from your own bank and click “buy’, then sit back and watch as your investment increases in line with the price change. That is called exchanging and occurs on many exchanges platforms available today, with the ability to trade between many different 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. You can find Bitcoin brokers like e-social trading, FXTM markets.com, and many others that you can choose from. The platforms provide 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 get the perfect pair in accordance with price changes; the platforms provide price among other indicators to give you proper trading tips.
Bitcoin as Shares
There are also organisations create to help you to buy shares in companies that invest in Bitcoin – these companies do the back and forth trading, and you simply invest in them, and await your monthly benefits. These companies simply pool digital money from different investors and invest with the person.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin demands 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 invest depends entirely on the individual. However, if I were to give advice, I would advise in favor of investing in Bitcoin with a reason that, Bitcoin grows – although there has been one significant boom and bust period, it really is highly likely that Cryptocurrencies as a whole will continue to upsurge in value over the next a decade. Bitcoin is the biggest, and most well known, of all the current cryptocurrencies, so is an excellent place to start, and the safest bet, currently. Although volatile for a while, I suspect you will find that Bitcoin trading is more profitable than almost every other ventures.