Bitcoin; The future currency

Bitcoin (B) is a cryptocurrency. It is the first decentralized digital currency without a principal monetary authority or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for mediator. All bitcoin transaction are documented on virtual ledger called the block chain, which is accessible for everyone to see. It gives you control over your money.

A SHORT HISTORY OF BITCOIN

The host name “Bitcoin.org” was registered on 18 August 2008 and on 31st October 2008 was published online by a guy called Satoshi Nakamoto. The document also called white paper,suggested a way of creating a system for a decentralized currency called Bitcoin. However it is a compound words of bit and coin. This system claimed to create digital money that solves the double spend problem without the need for central authority.

BITCOIN’S PRICE

There is no official fixed price for bitcoin, just like the dollar to other currency; bitcoin increases and decreases in value/rate. However, buy Bitcoin worldwide‘ is a good resources for the current and historical price.

Things you need to know before investing in Bitcoin

When is the right time to buy?

As with any market, nothing is for sure.

Throughout its history, bitcoin has generally increased in value at a very fast pace, followed by a slow, steady downfall until it stabilizes.

Use tools like Bitcoin Wisdom or Cryptowatch to analyze charts and understand Bitcoin’s price history.

Bitcoin is global and not affected by any single country’s financial situation or stability.

For example, speculation about the Chinese Yuan devaluating has, in the past, caused more demand from China, which also pulled up the exchange rate on U.S. and Europe based exchanges.

In addition, global chaos is generally seen as beneficial to Bitcoin’s price since Bitcoin is apolitical and sits outside the control or influence of any particulate government.

When thinking about how economics and politics will affect Bitcoin’s price, it’s important to think on a global scale and not just about what’s happening in a single country.

Why Bitcoin is Gaining Traction

The world is becoming ever more reliant on the internet.

It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors.

Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class.

Investing in bitcoin may seem scary, but know that it takes time and effort to understand how Bitcoin works.

Advantages of Bitcoin

Bitcoin is often hailed as the future of the monetary world for a variety of reasons. So what makes this cryptocurrency unique and attractive for millions of people all over the world?

  1. User Anonymity

While senders of traditional electronic payments are usually identified (for verification purposes, and to comply with anti-money laundering and other legislation), users of bitcoin operate in semi-anonymity. Since there is no central “validator,” users do not need to identify themselves when sending coins to each other. When a transaction request is submitted, the protocol checks all previous transactions to confirm that the sender has the necessary amount as well as the authority to send them. The system does not need to know his or her identity.

Unless a user voluntarily publishes his/her transactions, the purchases are never associated with his/her personal identity, much like cash-only purchases, and cannot be traced back. In fact, the anonymous Bitcoin address that is generated for user purchases changes with each transaction.

2. Transaction Fees

Standard wire transfers and foreign purchases typically involve fees and exchange costs. Since BTC transactions have no intermediary institutions or government involvement, the costs of transacting are kept very low. This can be a major advantage for travelers. Additionally, any transfer transaction happens very quickly, eliminating the inconvenience of typical authorization requirements and wait periods.

  • Currently there are either no fees, or very low fees within Bitcoin payments.
  • With transactions, users might include fees in order to process the transactions faster. The higher the fee, the more priority it gets within the network and the quicker it gets processed.
  • Digital Currency exchanges help merchant process transactions by converting bitcoins into fiat currency. These services generally have lower fees than credit cards and PayPal.
  1. Fast International Payments

International wire transfers can take from a few days to more than a week, whereas crypto transactions are generally confirmed with an hour. Sending digital coins across continents is as easy as sending them across the street. There are no banks in our way to make you wait 2-3 business days, no extra fees for making an international transfer, and no special limitations on the minimum or maximum amount you can send.

  1. Decentralization

No single institution controls the bitcoin network. It is maintained by a group of volunteer coders, and run by an open network of dedicated computers spread around the world. This attracts individuals and groups that are uncomfortable with the control that banks or government institutions have over their money.

Bitcoin solves the “double spending problem” of electronic currencies (in which digital assets can easily be copied and re-used) through an ingenious combination of cryptography and economic incentives. In electronic fiat currencies, this function is fulfilled by banks, which gives them control over the traditional system. With the crypto coins, the integrity of the transactions is maintained by a distributed and open network, owned by no-one.

  1. Security

Crypto payments don’t necessarily need to be tied to one’s personal information. Since personal information is left out of the transactions, users aren’t as exposed to threats such as identity theft. Bitcoin can also be backed up and encrypted to ensure the security of your money. Merchants cannot charge extra fees on anything without being noticed. They must talk with the consumer before adding any charges.

  1. No Paperwork

Anyone, from any country, of any age can accept Bitcoins within minutes.  There is no ID card, passport or proof of address that all conventional banks required to open an account.  All you need to do to start sending and receiving BTC is to download a Bitcoin Wallet program and generate a Bitcoin Address. You could have 1000s of different addresses if you wanted, there is no limit to the number of Addresses that you can have.

  1. Irreversible Transactions

As existing merchants will be well aware, when accepting credit card payments, or even bank payments the sender has the ability to reverse or “charge back” the payment.  There is nothing worse than sending products to a customer, only to receive a message that the payment has been reversed, you have been cheated and there is nothing you can do about it. Bitcoin is the only payment method that is 100% irreversible and cannot be charged back.  For this reason, you should be careful when sending your coins; be sure that you are sending them to a trusted vendor. It is like cash — once you give someone cash, you cannot get it back (unless they give it back to you).

  1. Freedom

The concept that one could carry millions or billions of dollars in Bitcoin across borders, pay for anything at any time, and not have to wait on extended bank delays is a major selling point. Using Bitcoin gives you the financial freedom to transact globally using all the properties mentioned above. As such, Bitcoin provides economic stability and newfound freedoms to the world, which are life changing events.

  1. Limited Supply

Bitcoin has a limited supply. There will only ever be 21 million BTC created and are generated at a predictable rate. It is scarce and deflationary.

  1. Mobile Payments

Like with many online payment systems, BTC users can pay for their coins anywhere they have Internet access. This means that purchasers never have to travel to a bank or a store to buy a product. However, unlike online payments made with U.S. bank accounts or credit cards, personal information is not necessary to complete any transaction.

WHY INVEST IN BITCOIN?

These may seem silly to some people that one bitcoin is worth thousand of dollars.

Why is bitcoin valuable?

Bitcoin are fright and beneficial.

Bitcoin provides sound and predictable monetary policy that can be verified by anyone.

Bitcoin’s sound monetary policy is one of its most important characteristics. It’s possible to see when new bitcoin are created or how many bitcoin are in circulation.

Bitcoin can be sent from anywhere in the to any other place in the world. No grid (bank) can block payments or close your account . It is a censorship resistant money.

How to invest in Bitcoin and where to Buy

The difficulty of buying bitcoins depends on your country.Developed countries have more options and more liquidity.

http://www.coinbase.com is the world Bitcoin broker and available in the United States, UK, Canada, Singapore, and most of Europe. You can use our Exchange finder to find a place to buy bitcoins in your country. If you ever wonder how to invest in bitcoins, you have come to the right place.

How to secure Bitcoin

As with anything valuable, hackers, thieves, and scammers will all be after your bitcoins, so securing your bitcoins in a virtual wallet is necessary.

If you’re serious about investing in bitcoin and see yourself buying a significant amount, we recommend using Bitcoin wallets that were built with security in mind.

  • Ledger Nano X – Ledger is a Bitcoin security company that offers a wide range of secure Bitcoin storage devices. We currently see the Ledger Nano X as Ledger’s most secure wallet. Read more about the Ledger Nano X.
  • TREZOR – TREZOR is a hardware wallet that was built to secure bitcoins. It generates your Bitcoin private keys offline. Read more about TREZOR.

Bitcoins should only be kept in wallets that you control.

If you leave $5,000 worth of gold coins with a friend, your friend could easily run off with your coins and you might not see them again.

Because Bitcoin is on the internet, they are even easier to steal and much harder to return and trace. Bitcoin itself is secure, but bitcoins are only as secure as the wallet storing them.

Investing in bitcoin is no joke, and securing your investment should be your top priority because the future is now!

Jennifer Lamptey

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