As the world is getting more and more digitized, there are a number of internet opportunities generating off late. Among the most frequently heard internet technical jargons these days are cryptocurrency, Bitcoins, Wallets, Mining, Bitcoin Investing, and Blockchain etc.
If you’ve no clue what this is all about, this post is definitely for you. This is your beginner’s guide to Bitcoins, the most commonly used cryptocurrency and how can you become the part of this bandwagon.
Understanding Bitcoin
Bitcoin is a new form of digital currency that seeks to change how online business is done to give the investors financial freedom in a true sense. It consists of digital encrypted transactions safely performed on a public ledger known as the blockchain. Unlike the traditional modes of payments such as PayPal, Visa/ MasterCard, Banks controlling the usual transactions, Bitcoin investment is largely governed by a close-knit community.
In simpler terms, bitcoin investment is like having cash in a wallet with the only difference that it exists in digital form instead of physical one. Another important feature of the bitcoin investment is the fact that it’s decentralized and is not backed by any government or financial institution.
Is it worth investing?
Definitely!
Bitcoin investment gives an excellent opportunity to generate a passive source of income and allow the investors enjoy the true financial freedom and a chance to enjoy a better lifestyle. Bitcoin is, in fact, the largest emerging global Internet-based forces in recent years. Some of the other features of the Bitcoins are-
• It is one of the most secure and stable crypto-currencies in the world today
• Bitcoin investments are easy to turn it into real money generating opportunities and for creating long-term wealth
• Bitcoin investment is the smartest way to monetize this cryptocurrency in order to achieve great financial freedom and better lifestyle without any external intervention whatsoever
History of Bitcoins
It is believed that the Bitcoin was created by a developer under the pseudo name Satoshi Nakamoto.
The idea of the Bitcoin was conceptualized when the creator identified certain problems with existing payment systems and wanted to find alternative ways to address them. When Nakamoto came up with the idea of bitcoin, decentralization played a major role in bringing the bitcoin concept alive and worth exploring it as an alternate mode of digital investment.
Decentralization concept was based on the idea that every single investor is a part of the bitcoin ecosystem and will contribute to it in their own ways. Instead of relying on the government or other centralized agencies, the Bitcoin community took the onus of managing the transactions on themselves.
Understanding the Blockchain and concept of Bitcoin Mining?
Blockchain technology
The blockchain technology was essentially devised for the digital currency-Bitcoin investment. It was created as the backbone of the bitcoin investment that allows digital information to be fairly distributed but not copied in any form.
It works as an extensive digital ledger/spreadsheet of all the bitcoin transactions happened during bitcoin investments. This data is all stored within blocks that are created at regular short intervals. Since each block is chained to the existing chain, it is termed as blockchain.
Bitcoin Mining
If you’re wondering who creates these blocks, the answer is the miners through the process of bitcoin mining.
Bitcoin mining is actually the process by which the bitcoin transactions are verified and added to the ledger, also known as the blockchain
Is Bitcoin mining for everyone?
Yes, anyone with an access to the internet and knowledge of how this works can participate in bitcoin mining. The process involves putting together all the recent transactions into blocks for easy management. It is just like solving a complex puzzle and the participant who is able to solve the puzzle gets to place the next block on the blockchain.
Benefits of Bitcoins
If you’re wondering about the real benefits of Bitcoins, here are some-
• High appreciation potential
One of the major benefits of the Bitcoin investing is the huge appreciation potential this cryptocurrency offers. Having seen a volatile phase at the Bitcoin inception, the currency has substantially stabilized in the recent times and has been steadily increasing in value on a daily basis.
• Excellent earning opportunity
Bitcoin investment works well on commission model thus enhancing the earning opportunities manifolds for the investors.
• Future potential
Serious gamers foresee incredible future in Bitcoins. For them, one of the great tools is the Bitcoin mining software, an incredible Bitcoin generator that makes their computer earn money for them. Bitcoin software is an amazing opportunity for the cryptocurrency enthusiasts to enable anyone and everyone’s computer to earn the digital money in the form of Bitcoins
• Easy and paperless transactions
This is yet another advantage of the bitcoin investment. It allows the investors to take the benefit of the opportunity from anywhere and anytime. Since Bitcoin investment is not backed by any financial institution, there is no paperwork needed unlike the conventional bank's requirements to open an account and start investments. Bitcoin Wallet program is an easily accessible program that allows the investors to start sending and receiving Bitcoins without any hassle
Risks associated with Bitcoin investment
Although the benefits of Bitcoins easily outweigh the risks, it is only fair to explain the risks associated with the Bitcoin investments. Some of these risks are discussed below-
• Untraceable nature: One of the biggest risks of the Bitcoins is their untraceable nature that sometimes runs the danger of attracting e-crimes. Since the Bitcoin investment works similar to regular cash transactions in digitized form, they can be used by the criminals for illegal activities, if not tracked and managed properly.
• Risk of volatility: Although Bitcoins have stabilized in the recent times the fact remains that they are volatile in nature. To be able to take the benefit of bitcoin investment is essential to get one familiarized with the technicalities of the cryptocurrency investment or else in long-turn managing such volatility can get difficult and inconvenient for the investors.
• Low acceptability: Since Bitcoins are still fairly new cryptocurrency there are a lot of places where Bitcoins aren’t accepted as payment. Although this might change in future, for now, Bitcoins are largely limited as a mode of investment.
• Risk of hacking: This is another big risk of the Bitcoins that they are easy to lose. Furthermore, there is no mechanism to recover stolen or lost Bitcoins. If your Bitcoin wallet gets hacked, Bitcoins will be lost for good with no recovery mechanism to recover them.
How do I get started with bitcoin investment?
This one of the most frequent questions asked by the Bitcoin beginners
If you’ve the same question, here is how you can get started!
• There are a number of ways to obtain bitcoins but before we get to that, you need to learn the concept of the 'Bitcoin wallet'.
• A Bitcoin wallet, as the name suggests, is a kind of digital wallet required to get started with using bitcoins. It can be created easily through different online applications.
• In simple terms, think of a Bitcoin wallet like an "app" that you would install on your phone. You can either download your bitcoin wallet on your computer through a software wallet, on your mobile and also on the web. It takes just a few minutes to get a bitcoin wallet and once you create one you are good to go with bitcoin investing
How to get bitcoins?
Below are the most common methods of obtaining bitcoins-
• You can accept bitcoins as a form of payment in case you are selling goods
• Another method is to purchase and sell bitcoins through reliable Bitcoin exchanges
• Bitcoins can also be accumulated by trading bitcoins for traditional currencies of various countries
Obtaining bitcoins through an exchange is the most feasible and efficient way to get started. There are many online exchanges through which you can obtain bitcoins and get started.
The Future of Cryptocurrency Market
As Bitcoin investment is gaining popularity, government and centralized bodies are taking different stances against/for it. However, Bitcoin mining is an incredible opportunity to generate a passive source of income. In fact, the Bitcoin software is presenting an incredible opportunity for the cryptocurrency enthusiasts to earn the digital money in the form of Bitcoins. It allows the investors to earn as much as $50 per computer per person. The profits soon start adding up as it is free to join for anyone and everyone.
Considering the recent growth in the Bitcoin market and extended volatility with altcoins there has been renewed interest and speculation on the future of the cryptocurrency market. After Bitcoin, Ethereum is one of the most popular and well-known Cryptocurrency available and used worldwide. The popularity of this cryptocurrency can be guessed by the fact that price of Ethereum which is around $350 currently, is expected to cross $1000 by the end of the year 2017.
The future of bitcoins and cryptocurrency is definitely promising. In fact, there are constant talks that the virtual currencies such as bitcoins are the wave of the future due to the features such as being decentralized, transparent, and secure and hassle-free.