ALL ABOUT BITCOIN
Bitcoin has many advantages that make it superior to normal local currencies.
If someone asks you what the emergence of cryptocurrency would contribute to the financial world, for sure the main thing that will cross your mind would be what is cryptocurrency?
Primarily this would be the first thought of most people especially those who are not familiar with the currently existing digital currencies. However, if you are someone who’s knowledgeable enough with regards to crypto currencies, even with your eyes closed, for sure you can answer the question very well.
Market analysts are observing that many stocks and commodities which may be profitable have recently been ignored, as many traders turned to the digital currencies markets, especially Bitcoin.
For most ordinary investors, the stock prices can seem very expensive – examples are Apple and Facebook, where the prices for their stocks can reach more than $150. Therefore, we find that the majority of these investors tend to buy Bitcoins, where they can easily purchase fractions as low as 100th million of a Bitcoin, making it very simple and affordable for anyone to start trading.
This makes most of the young, novice traders avoid regulated stock markets and head towards the less-regulated ones: the virtual currency markets. It is estimated that about two-thirds of investors in the digital currency markets are under the age of 40. For tech-savvy economists, this represents a huge step towards the digital age.
Bitcoin is also characterized by fast and very low-cost transactions, in comparison to the traditional money transferring methods. They are much faster and less expensive than credit cards, which can usually cost 3% to 5% of the transferred amounts. International wire transfers can take between a few days to more than a week to complete, whereas transactions in Bitcoin are generally confirmed in less than an hour.
Transactions in Bitcoin are irreversible. For example, a knowledgeable trader who pays by credit card or bank transfer has the ability to “charge back”. This is often considered a trick that you cannot do anything about. Bitcoin, on the other hand, is the only proven method of payment 100% irreversible. This is why you should always make sure you are sending it to the right and trusted source.
Bitcoin doesn’t have any boundaries, as anyone from any country and at any age can receive or send from the comfort of his house, in minutes. All this without being required to verify his ID, passport or proof of residence as in the case of making any other kinds of transfers. All you need to do in order to start sending and receiving Bitcoin is to download a Wallet software. Bitcoin will not suffer from the inflation experienced by other currencies, which leads to the loss of their purchasing value over time. Bitcoin is mined very slowly and it should be noted that there will only be 21 million Bitcoins in existence.
The Bitcoin is also far from the risk of collapsing, not like the usual currencies tied to governments that may fail at some point and lead to the collapsing of the currency. Bitcoin has no connection to any government. Another interesting thing is that Bitcoin is very easy to carry – as you can easily travel from place to place having $1 million dollars stored in your phone or laptop’s memory.
Why Bitcoin is on the lips of any serious investor
Just a few months ago, Bitcoin achieved a remarkable milestone, surpassing the price of an ounce of gold. It’s becoming increasingly harder to ignore given the significant riches available to anyone serious about investing their savings shrewdly. In April alone, Bitcoin soared almost 65%, crashing through the $2,000 value barrier and beyond. For too long digital currencies have been viewed as a fad for computer geeks that would never catch on in the real world. Well, like it or not, cryptocurrencies such as Bitcoin, Ethereum, Lumens and Litecoin are here to stay and have been adopted by some of the world’s biggest economies, as well as leading consumer brands as a legitimate payment method.
Cryptocurrency experts believe the recognition for digital currencies by Japan – the third biggest economy on the planet – has given Bitcoin investors tremendous confidence to invest further. Another key reason for the buoyancy of cryptocurrency is that it’s not influenced or backed by governments and is subsequently not at risk of fluctuation in the event of parliamentary uncertainties.
So what actually is a Bitcoin? In essence, Bitcoin is a form of electricity that’s turned into digital code that’s given a monetary value. At the core of the existence of each and every Bitcoin you can acquire is something known as a blockchain. In essence, a Bitcoin blockchain is a data ledger file that looks similar to a long text message on a mobile phone. The file outlines the identifying address, the history of the Bitcoin purchaser, as well as the individual who sold it.
What can you do with your Bitcoin? Some serious investors see Bitcoin and other cryptocurrencies as a great opportunity to generate long-term profits. In fact, a single Bitcoin is now reportedly worth more than an ounce of gold.
However, there are now many other ways you can spend your Bitcoin, including:
- Gift cards – although Amazon has not yet cottoned on to the popularity of Bitcoin as a payment method, several other enterprising sites have. The likes of eGifter and Gyft enable you to purchase gift cards using your Bitcoin and subsequently redeem them with Amazon and heaps of other retailers.
- Video gaming – games console fanatics will be pleased to hear that Microsoft and Green Man Gaming now offer their games and apps in exchange for Bitcoin. Rather more interestingly, there are Minecraft servers that now use Bitcoin to power their in-game payments too.
- Food and drink – since the back end of 2016, global caffeine fiends Starbucks have given their customers the ability to pay for their coffee using Bitcoin via iPayYou, an American payment gateway built specifically for Bitcoin integration. Meanwhile, one quick Google of ‘bitcoin restaurants’ reveals a raft of independent eateries as well as restaurant chains across the globe that now adopt crypto-currency payments for meals and snacks.