Though it is touted as a digital currency which makes millionaires, quite a lot of people still don’t know about Bitcoin. Whether you’re thinking of purchasing it – or just want to know what it is, this guide will come handy.
Bitcoin was introduced in 2009 as a cryptocurrency – or a digitally encrypted currency.The purpose behind it was to make such a currency which is un-hackable, untraceable and therefore safe for investors. Like every self-made millionaire, Bitcoin started at rock bottom – valuing at around 0.30 cents in January 2011. Currently, however, its value stands north of $15,000.
How does Bitcoin Work?
As virtual coins, Bitcoins are produced to be “self-contained” – meaning no banks are involved. Once you have them, you can use Bitcoins in the same manner as gold nuggets, albeit a little more discreetly.
Provided you want to use them, there are several websites that accept Bitcoins. However, if you’re an investor, you can tuck your Bitcoins away in a “wallet”.
Wallets are personal databases which you can store on your computer drive, tablet, in the cloud storage or on your smartphone.
It doesn’t matter where you store them – for no hacker can steal a Bitcoin. For, they are encrypted in such a manner that counterfeiters just cannot financially afford to steal them.
Why are Bitcoins Controversial?
Many reasons are there which make Bitcoins controversial, with the major one being that no central agency governs them. Between 2011 and 2013, criminal traders used Bitcoins to store them money away from the prying eyes of law enforcement agencies.
Second, no matter in how much debt you’re, no taxman can freeze your Bitcoin accounts. It is probably the reason why bankers see them as Gold Nuggets which exist in the “wild, wild west” where no financial institutions and traditional police can control them.
Finally, Bitcoins take the power of money-making away from the central reserve banks and into the hands of the general public. And as you might guess, our elite doesn’t like this aspect of Bitcoins one bit.
How to Invest in Bitcoins?
Just like any other investment you’re going to make in your life, never invest more in a Bitcoin than what you can afford to lose. Cryptocurrencies, despite their current popularity, can be highly volatile. Therefore, before making any investment, consult a well-versed investor.
If you still think you need a Bitcoin, there are apps– like Coinbase, Bitstamp, and Blockfolio – on which you can start investing. They act like digital wallets and store your Bitcoins.