What is Bitcoin?
If you’re here, you’ve heard of Bitcoin. This has been one of the most frequent headlines in the last year or so – as a get-rich-quick scheme, the end of finance, the birth of a truly international currency, as the end of the world, or as a technological breakthrough. . the world. But what is Bitcoin?
In short, you can say that Bitcoin is the first decentralized currency system used for online transactions, but it might 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 witnessed in the use of money before Bitcoin has to do with it being centralized and controlled by one entity – the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator who goes by the pseudonym ‘Satoshi Nakamoto’ to bring about the decentralization of money around the world. The idea was that money could be traded across international lines without difficulty or fee, checks and balances would be distributed globally (rather than the ledgers of private corporations or governments), and the money be 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 anonymous researcher. The reason for its invention was to solve the issue of centralization of the use of money that depends on banks and computers, an issue that many computer scientists are not happy about. Achieving decentralization has been attempted since the late 90s without success, so when Satoshi published a paper in 2008 that offered a solution, it was well received. Today, Bitcoin has become a familiar currency for internet users and has spawned thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin created?
Bitcoin is created through a process called mining. Just like paper money is created by printing, and gold is mined from the ground, Bitcoin is created by ‘mining’. Mining involves solving complex mathematical problems about blocks using computers and adding them to a public ledger. When it started, a simple CPU (like that of your home computer) was all that was needed to mine, however, the level of difficulty increased significantly and now you need special hardware, including which is the high end Graphics Processing Unit (GPUs), to get Bitcoin.
How can I invest?
First, you must open an account with the trading platform and create a wallet; you can find some examples by searching Google for ‘Bitcoin trading platform’ – they usually have names involving ‘coin’, or ‘market’. After joining one of these platforms, you click on assets, and then click on crypto to select your desired currencies. There are many indicators on each platform that are very important, and you should be sure to observe them before investing.
Just buy and hold
While mining is the safest and, in a way, the simplest way to earn Bitcoin, there is too much rush involved, and the cost of electricity and specialized computer hardware makes it inaccessible to most of us. . To avoid all this, make it easy for yourself, directly input the amount you want from your bank and click “buy”, then sit back and watch as your investment will increase according to the price change. It is called exchange and takes place in many exchange 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 familiar with stocks, bonds, or Forex exchanges, you will easily understand crypto-trading. There are Bitcoin brokers like e-social trading, FXTM markets.com, and many more that you can choose from. Platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means trading Bitcoins for US Dollars. Keep your eyes on the price changes to find the perfect pair according to the price changes; platforms provide price among other indicators to give you proper trading tips.
Bitcoin as Shares
There are also organizations that have been set up to allow you to buy shares in companies that invest in Bitcoin – these companies do repeat sales, and you just invest in them, and wait for 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, investing in Bitcoin requires that you have some basic knowledge of money, as explained above. Like all investments, it involves risk! The question of whether to invest or not depends on the individual. However, if I were to give advice, I would advise in favor of investing in Bitcoin with one reason that, Bitcoin continues to grow – despite having a significant boom and bust period, it is likely that Cryptocurrencies in general will continue to increase in value for the next 10 years. Bitcoin is the biggest, and most popular, of all the current cryptocurrencies, so it’s a good place to start, and the safest bet, at the moment. Although volatile in the short term, I suspect you will find Bitcoin trading more profitable than most other businesses.