What is Bitcoin?
If you’re here, you’ve heard of Bitcoin. It has been one of the most frequent news headlines of the last year more or less, as a quick scheme to get rich, the end of finances, the birth of a truly international currency, as the end of the world or as to technology that has improved the world. But what is Bitcoin?
In short, it could be said that 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 for. The most significant issue that was observed in the use of money before Bitcoin relates to its centralization and control by a single entity: the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator who bears the pseudonym “Satoshi Nakamoto” to bring decentralization to money on a global scale. The idea is that currency can be traded through international lines without difficulty or commissions, checks and balances would be distributed around the world (rather than just in the ledgers of private corporations or governments) and money would become more democratic. and equally accessible to all.
How did Bitcoin start?
The concept of Bitcoin and cryptocurrency in general was started in 2009 by Satoshi, an unknown researcher. The reason for his invention was to solve the problem of centralization in the use of money that depended on banks and computers, an issue with which many computer scientists were not happy. Attempts have been made to achieve decentralization since the late 1990s without success, so that when Satoshi published an article in 2008 that provided a solution, it was overwhelmingly welcoming. Today, Bitcoin has become a familiar currency for Internet users and has given rise to thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just as paper money is made by printing and gold is taken out of the ground, Bitcoin is created by “mining”. Mining involves solving complex mathematical problems related to blocks that use computers and adding them to a public book. When it started, all you needed was a simple CPU (like the one you have on your home computer), but the difficulty level has increased significantly and you will now need specialized hardware, including the GPU (High Process Processing Graphics). extract Bitcoin.
How do I invest?
First, you need to open an account with a trading platform and create a portfolio; You can find some examples by searching Google for “Bitcoin Trading Platform”; they usually have names that imply “currency” or “market.” After joining one of these platforms, click Resources and then click Encryption to choose the currencies you want. There are many indicators on all platforms that are quite important and you should make sure to observe them before investing.
While mining is the safest and somehow the easiest way to earn Bitcoin, there is too much rush and the cost of electricity and specialized hardware makes it inaccessible to most of us. To avoid all this, make it easy, enter the amount you want directly from your bank and click “buy”, then make sure and observe how your investment increases as the price changes. This is called exchange and takes place on many exchange platforms available today, with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and different cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.).
If you are familiar with stocks, bonds, or stock exchanges, you can easily understand cryptocurrency trading. There are Bitcoin brokers like social e-commerce, FXTM markets.com and many others from which you can choose. The platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example, BTC-USD means to operate bitcoins for US dollars. Watch for price changes to find the perfect pair according to price changes; platforms provide pricing among other indicators to give you proper trading advice.
Bitcoin as shares
There are also organizations set up to allow you to buy shares in companies that invest in Bitcoin – these companies do business back and forth, and just invest in them and expect your monthly profits. These companies simply pool digital money from different investors and invest on their behalf.
Why invest in Bitcoin?
As you can see, investing in Bitcoin requires that you have a basic knowledge of the currency, as explained above. As with all investments, it involves risk. The question of whether or not to invest depends entirely on the person. However, if I were to give advice, I would advise in favor of investing in Bitcoin with a reason why, Bitcoin continues to grow, although there has been a significant period of growth and boom, it is very likely that cryptocurrencies as a whole will continue increase in value over the next ten years. Bitcoin is the largest and best known of all current cryptocurrencies, so it is a good place to start and the safest bet right now. Although volatile in the short term, I suspect you will find that trading Bitcoin is more profitable than most other companies.