– We are in the new world of crypto –
Over the last few years people have been hearing whispers of an online currency which keeps rising in price and creating hundreds of multi-millionaires and now even billionaires the likes of the Winklevoss brothers, the currency is Bitcoin.
It wasn’t until the end of November and the start of December 2017, when many more people heard about bitcoin as it hit over $16,000 a coin.
This has brought in many more hundreds of people investing in bitcoins and other crypto currencies. The thing is, most people don’t know what their investing in. They don’t know what a Bitcoin is, what an altcoin does, or what a fork is. This has lead to many people losing thousands of dollars, all because they didn’t do their research first. And, when a dip happens they lose thousands. Investing in crypto currencies can be a very lucrative business and in any case in investing you can lose most or all your investment when things go south.
In saying that, investing in crypto currency, like bitcoin can change your life.
While bitcoin now might be over $10,000 a coin, it doesn’t mean it’s too late, there are other options that an investor can take, but first they need to know what a bitcoin is.
So, what is a bitcoin?
First of all bitcoin wasn’t the first online currency online. The was Ripple/XRP, which first debuted back in 2005 in a bid to enable “secure, instant and nearly free global financial transactions of any size with no chargebacks.”
Bitcoin didn’t launch until 2009 a few years later, in which it became the first decentralized digital currency ever, which means that the system works without a central repository or single administrator.
Bitcoin is a Digital currency which can be sent from person to person via the net. Why the price has gotten so high and it’s so popular with investors is because of a few things. First, bitcoin has a few advantages over a lot of its competitors. For one, sending money via bitcoin cuts out banks and clearing houses with money transfers. This means the transfer fees are much lower and you can use them in any country that is allowed. Your account can not be frozen like it could be with a normal bank and there are no limits to withdrawal.
Now, let’s see how it works!
Bitcoins are generated by anybody with a computer and a free application called a bitcoin miner. When mining, bitcoins are created at by putting your computer to work and are created at a predictable and limited amount. It takes a lot of processing to do this and can be long and arguses to collect bitcoin and the more people that mine, the less is collected by each. Mining means securing the block chain. Each time a transaction processed, every 10 minutes the block is secured. Think of it like a a robber trying to steal from a house that has thousands of dollars, by the time the robber goes to steal, another house is built, and another and another. Very soon a small village, a town, a city of houses is created, leaving the robber lost in limbo, forever searching for that house with the money. This is why bitcoin is worth so much, when you have something so secure that nothing can break in it’s worth paying thousands to have.
For bitcoin and a lot of the altcoins, every transaction is put on a ledger, keeping track of how much is actually being traded, and with no bank or trading house losing transactions, trading of money can done smoothly.
There is only a limited amount of bitcoin available and with scarcity it drives the price up higher. Bitcoin has and is also lost by people storing their Bitcoin on external hard drives and misplacing them or braking them. A few years ago there was an investor who threw away a hard drive of bitcoin, in today’s money he would have over a hundred million.
Also there has been cases of people not writing down their private keys, and then when they lose them, they can never get access to their Bitcoins again.
As bitcoin rises, it’s on a roller coaster of a ride and what goes up must come down and it will keep correcting itself to the market. Unlike normal shares and investments, bitcoin isn’t controlled by governments or companies. It’s a system that runs on data which will, in today’s world and our futures is the way things are going, so for now it’s a safe bet, but you can still lose lots of money when the corrections happen, so be clever and careful.#
How do I get bitcoin?
There are a few ways to get Bitcoin like on trading websites or on apps but the one that I’ll explain is Coinbase as it’s simple to use for any beginner and pro out there.
Coinbase can be downloaded from the App Store or Google play store and also can be accessed on the web. First, you’ll have to sign up and write down on paper any codes or passwords you use. Update your payment details and when that’s done, you can buy Bitcoin, Ethereum and Litecoin.
Here’s my referral link to – > Coinbase
Where do I store bitcoin?
You can store your bitcoin on Coinbase, but it can go up or down in value as its not stored in a wallet. Searching Google on your laptop or the App Store, you’ll be able to find wallets to transfer your coins over to.
Breadwallet is a good choice as you can get it both on iOS and Android, it’s safe and secure and easy to use.
When you do get a wallet, write down on paper your private key and store it somewhere safe, so you’ll always have access to your coins. Transfer of coins to a wallet can be done simply by getting the address of the wallet and on your Coinbase send your coins to it. This should cost you a very small fee, but still way cheaper than using banks.
The future of bitcoin
Most people think that the future of Bitcoin is an unstable one, they might be right but in my view it’s very interesting because with technology there’s only one way the future of Money is going, and that is cashless. Money has changed many times over the lifetime of humanity, but trading stuff for stuff is still the same. Now with technology and internet based money, eventually physical paper money might die out. From what I can see now, most people don’t even carry around cash anymore and if they do, it’s only for car parking meters or vending machines. I for one, rarely even use my card anymore, I find. using my phone much safer and faster to use as the only access to it is my fingerprint and codes that only I know. It’s more secure, and that’s the point. Bitcoin and altcoins are run on a system that you can’t hack or steal from unless you have the right codes to access them.
I see Crypto being the money of the future, it might disrupt governments and companies but that’s a good thing as it gives more power to the average person.
We are still in the early days of Bitcoin and still have a long way to go. If you think back to anything that started before, it evolves, and changes like from hut to house, horse to car, radio to tv, computer to phone and monkey to man.
The next time Crypto evolves it’s going to change the world.
Keep your eyes peeled and your ear to the ground, something big is happening…
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