What is Bitcoin
Bitcoin is an open-source peer-to-peer cryptocurrency that was first introduced in 2008. The primary purpose of this digital currency is to provide instant payments to anyone around the world without any intermediary. This means there are no banks or financial institutions involved. In addition, its users can send and receive funds anonymously, untraceably, and almost instantly. This makes bitcoin perfect for people who want to exchange money without having to go through third parties like PayPal, Western Union, etc.
1. A decentralized digital currency that uses peer-to-peer technology to facilitate instant payments. Bitcoin has no single owner or administrator; it is maintained through a open-source client program called Bitcoin Core. Bitcoins can be exchanged for other currencies (such as USD) and are completely anonymous. There is no central repository nor any government oversight.
2. Bitcoin transactions are tracked using specialized computers known as miners that use complex cryptographic algorithms to ensure the integrity and security of each transaction. This record-keeping is shared among all users and businesses who want their financial transactions validated. In this way, Bitcoin is often described as a trustless network, meaning that data cannot be changed without being verified by everyone on the network.
3. Bitcoin was invented by a person or group going under the pseudonym Satoshi Nakamoto in 2009 and released as open-source software in 2009. Since then, the value of a bitcoin has increased from less than $0.0005 per coin to over $1000 per coin. The total market cap of all bitcoins in existence is over $20 billion.
Bitcoin is a peer-to-peer digital currency that was created by Satoshi Nakamoto in 2008.
The idea of Bitcoin is to use cryptography (which we have covered before) to create a currency system where transactions can occur between two parties safely without the need for a central bank.
As of right now, Bitcoins are used primarily as an investment vehicle, but they do have other potential uses. One of the biggest barriers to adoption for this type of currency is its volatility. This causes problems when trying to incorporate it into everyday life.
There are currently two ways people deal with this volatility issue. Some choose to accept losses rather than fight them and hope the value goes back up again while others sell what they own at current prices, then buy it back later when it has gone down.
Either way, it’s not ideal. If you decide to hold your coins instead of selling them, you’re just letting inflation happen. At current rates, you’ll never get any return on your money ever again.
The second option is also not ideal. You may feel like you’re getting a bargain today, but if you wait too long, someone else might come along who doesn’t mind paying inflated prices.
Benefits of bitcoin investment
1. No fees associated with Bitcoin
Bitcoin is free from any fees that are associated with banks. Every transaction can be done without involving any third party. You do not need to be a millionaire to invest into Bitcoin since it is easy to buy through the use of a bank account.
2. No tax on Bitcoin
You do not have to pay capital gains taxes when investing into Bitcoin. This means you get your profit tax-free. This is unlike other investments where profits are taxed at different rates.
3. Easy access to Bitcoins
You can easily make purchases using bitcoins. All you need is to sign up for an online wallet and transfer money to it. Then just log onto your website and click purchase to start buying your desired product.
4. Bitcoin Investment can generate a passive income –
That means your earnings keep growing without any extra work – while you sleep! Bitcoin has consistently outpaced other investments through thick and thin due to its underlying deflationary nature. The value of Bitcoins will continue to appreciate over time and this bodes well for people who get into Bitcoin earlier.
5. You don’t have to purchase them yourself –
Great news for first-timers! They are easy to buy and sell online. There’s no shortage of places you can trade your coins either. 3. Bitcoin is not risky to hold – unlike many other cryptocurrencies, risk is not even close to being a factor in investing in Bitcoin. There is virtually no chance of loss (except for an extremely rare event). Since it was created only 10 years ago, it has remained relatively stable and secure.
6. You can own a piece of history –
Just like gold, Bitcoin mining will become increasingly difficult later down the road. This makes it extremely valuable. 5. It’s backed by banks – While it may seem strange, the US government actually backs Bitcoin too. Unlike USD, they’re not going to go bankrupt… Crypto markets aren’t regulated by governments and central banking systems. For example, if it drops 50%, it doesn’t mean the bank you used to exchange it can just take your money and run. Instead, it creates scarcity – it drives demand.
7. It’s profitable –
In fact, it’s one of the easiest ways I know to make passive income – especially if you already use Coin base. They pay you to sign up.