What is Bitcoin?
If you’re here, you’ve heard of bitcoin. It has been one of the most frequent headlines in the last year or so – as a scheme of rapid enrichment, the end of finance, the birth of a truly international currency, as the end of the world or as a technology that has improved the world. But what is Bitcoin?
In short, Bitcoin is the first decentralized money system 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 significant problem observed in the use of money for bitcoin is related to a centralized and controlled by one entity – the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator who wears the pseudonym “Satoshi Nakamoto” to bring decentralization of money on a global scale. The idea is that currency can be traded internationally without any difficulties and fees, checks and balances will be distributed around the globe (not just in the books of private corporations or governments), and money will become more democratic and equally accessible for everyone.
How did bitcoin start?
The concept of bitcoin and cryptocurrency in general was created in 2009 by an unknown researcher Satoshi. The reason for his invention was to address the issue of centralizing the use of money, which relied on banks and computers, an issue that did not satisfy many informants. Since the late 1990s, unsuccessful attempts have been made to achieve decentralization, so when in 2008 Satoshi published a document containing the decision, it was very welcome. Today, bitcoin has become a common currency for Internet users and has generated thousands of “altcoins” (cryptocurrencies that are not part of bitcoin).
How is Bitcoin produced?
Bitcoin is produced through a process called mining. Just as paper money is produced by printing, and gold is mined from the ground, bitcoin is created by “mining”. Mining involves solving complex mathematical problems regarding blocks using computers and adding them to a public book. When it started, mining required a simple processor (such as on your home computer), but the level of complexity has increased significantly, and now you will need specialized equipment, including a high-end graphics processor (GPU). to extract Bitcoin.
How to invest?
First you need to open an account on the trading platform and create a wallet; you can find some examples by searching Google for “Bitcoin Trading Platform” – they are usually called “coin” or “market”. After joining one of these platforms you click on the assets and then click on the crypto to select the desired currency. There are many indicators on every platform that are very important and you need to make sure you keep them before you invest.
Just buy and keep
Although mining is the most reliable and, in a sense, the easiest way to earn bitcoin, there is too much fuss, and the cost of electricity and specialized computer equipment makes it inaccessible to most of us. To avoid all this, make it easy for yourself, enter the desired amount in your bank and click “Buy”, and then sit back and watch your investment grow as prices change. This is called an exchange and takes place on many exchange platforms available today, with the ability to trade between different fiat currencies (USD, AUD, GBP, etc.) and different cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.).
If you are familiar with stocks, bonds or forex exchanges, then you will easily understand crypto-trading. There are bitcoin brokers such as e-social trading, FXTM markets.com and many more to choose from. The platforms provide you with Bitcoin-Fiat or Fiat-Bitcoin currency pairs, for example, BTC-USD means bitcoin trading on US dollars. Keep an eye on price changes to find the perfect pair depending on price changes; platforms provide price among other indicators to give you the right trading tips.
Bitcoin as a stock
There are also organizations set up to allow you to buy shares of companies that invest in bitcoin – these companies trade back and forth, and you just invest in them and wait for your monthly income. These companies simply pool the digital money of 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 currency, as explained above. Like all investments, it involves risk! The question of whether to invest or not is entirely up to the individual. However, if I wanted to give advice, I would advise investing in bitcoin for the reason that bitcoin continues to grow – although there has been one significant period of boom and bust, it is very likely that cryptocurrencies in general will continue to grow. value growth over the next 10 years. Bitcoin is the largest and most famous of all modern cryptocurrencies, so it is a good place to start and the safest bet at the moment. Despite the instability in the short term, I suspect you will find that Bitcoin trading is more profitable than most other businesses.