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 planet, or as a technology which 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 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 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 idea is that the currency can be traded across international lines with no difficulty or fees, the checks and balances will be distributed across 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.
How did Bitcoin start?
The idea of Bitcoin, and cryptocurrency in general, was were only available in 2009 by Satoshi, an unknown researcher. The reason behind its invention was to solve 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 since the late 90s without success, when Satoshi published a paper in 2008 providing a solution, it had been overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for internet surfers and contains given rise to thousands 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 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 home computer) was all one needed to mine, however, the amount of difficulty has increased significantly and now you will need specialised hardware, including high end Graphics Processing Unit (GPUs), to extract Bitcoin.
How do I invest?
First, you need to 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 often have names involving ‘coin’, or ‘market’. After joining one of these 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 which are quite important, and you ought to be sure you observe them before investing.
Simply buy and hold
While mining is Bitcoin Cash Token and, in ways, 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 total amount you want from your bank and click “buy’, then relax watching as your investment increases in line with the price change. This is called exchanging and takes place on many exchanges platforms available today, 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 others that you can pick 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 according to price changes; the platforms provide price among other indicators to give you proper trading tips.
Bitcoin as Shares
There are also organisations set up to help you to buy shares in companies that invest in Bitcoin – these companies do the trunk and forth trading, and you simply invest in them, and wait for your monthly benefits. These businesses 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 that you have some basic knowledge of the currency, as explained above. Much like all investments, it involves risk! The question of if to invest depends entirely on the average person. However, if I were to give advice, I would advise in favor of investing in Bitcoin with grounds that, Bitcoin grows – 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, and most well known, of all the current cryptocurrencies, so is an excellent place to begin, and the safest bet, currently. Although volatile in the short term, I suspect you will find that Bitcoin trading is more profitable than most other ventures.