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 quick scheme, the end of finance, the birth of truly international currency, because the end of the world, or as a technology that has improved the world. But what is Bitcoin?
In short, you can say Bitcoin is the first decentralised system of money useful 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 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 can be traded across international lines without 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 become more democratic and equally accessible to all.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency generally, was started in 2009 by Satoshi, an unknown researcher. The reason behind its invention was to solve the problem of centralisation in the use of money which relied on banks and computers, a concern that lots of computer scientists weren’t pleased with. Achieving decentralisation has been attempted since 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 surfers and has given rise to thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made by way of a process called mining. Just like paper money is manufactured 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 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 should open a merchant 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 go through the assets, and then click on crypto to select 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 an excessive amount of hustle involved, and the expense of electricity and specialised computer hardware makes it inaccessible to most of us. To avoid all of this, make it possible for yourself, directly input the total amount you want from your bank and click “buy’, then relax watching as your investment increases according to the price change. That 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 acquainted with stocks, bonds, or Forex exchanges, then you will understand crypto-trading easily. There are Bitcoin brokers like e-social trading, FXTM markets.com, and many others that you can choose from. trading cryptocurrency reddit 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 find the perfect pair in accordance with price changes; the platforms provide price among other indicators to provide you with proper trading tips.
Bitcoin as Shares
There are also organisations create 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 companies simply pool digital money from different investors and invest on their behalf.
Why should you invest in Bitcoin?
As you can see, buying Bitcoin demands that 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 average person. 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 is highly likely that Cryptocurrencies as a whole will continue to upsurge in value over the next 10 years. Bitcoin is the biggest, & most well known, of all 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 almost every other ventures.