Today I’ll show you how to make money with Bitcoin, starting right now. But before I show you how to do it, I need to tell you why you should even care about this at all.
Table of Contents
What is Bitcoin?
A this is a type of digital currency that uses cryptography for security purposes. No one controls the creation of new bitcoins; they are created on-demand by people using software that solves mathematical problems. A fixed number of this are released over time in this way, with more coming when more math problems are solved successfully. The value fluctuates according to supply and demand, but trades for approximately $57279.20 per bitcoin at this writing. For more information visit here.
You can buy bitcoins online or offline using a variety of methods. You could meet someone in person and pay cash for bitcoins, or you could use an exchange to buy them with the bank or PayPal funds. There are apps available for your smartphone that will let you trade bitcoins in real-time, based on live valuations, though this is not recommended, as the risk of getting cheated by other traders is quite high. Or, if you’re feeling particularly enterprising, you could mine bitcoins yourself!
Is Bitcoin A Scam?
One common question people ask about this is whether it’s a “scam” or a Ponzi scheme. The short answer here is no; in fact, many reputable investors consider bitcoin one of the most interesting developments in modern finance. But before I get into why it’s not a scam (and I promise, that’s coming up), let me tell you why I even care about this in the first place.
Why Is Bitcoin So Popular Right Now?
The key factor behind bitcoin’s meteoric rise has been its increasing legitimacy among lawmakers and government regulators. For example, earlier this year (in late March), the Financial Crimes Enforcement Network (FinCEN), part of the US Treasury Department, officially defined Bitcoin exchanges, and how they interact with regulated financial institutions.
Up until this point, the legal status of this has been a little unclear in many jurisdictions around the world. But this new ruling provided a much-needed clarification. The main thing investors wanted and got was legal certainty about being able to safely buy and sell this on exchanges that are backed by FDIC insurance (like GDAX) that covered their stored digital currency balances.
This was important for two reasons:
1 ) it meant people would be protected from any future theft or hacking incidents at major exchanges
2 ) it gave these mainstream exchanges increased credibility, which increased overall confidence in Bitcoin itself. This put a bid under the price of this , giving a nice jolt to its overall valuation.
Benefits of Investing in Bitcoin
High liquidity and volume:
You can easily buy and sell bitcoins through online exchanges, and an increasing number of merchants now accept this as payment for goods and services.
Currency can’t be manipulated by central banks:
This is one of the major benefits of using Bitcoin as a currency, especially if you happen to live in a country where inflation or commodity prices are high (like Argentina or Venezuela).
Freedom from prying governmental eyes:
Something that holds particular appeal to those who would like to keep their transactions private, however, there are also many legitimate reasons why people may want this anonymity too. Anonymity also makes it much more difficult (but not impossible) for governments and law enforcement agencies to track down individual users. In short, it’s much more difficult to link a specific Bitcoin address to an actual user or identity, unlike centralized electronic fiat currencies that can be tracked by the issuing central bank.
Little to no transaction costs:
Relatively speaking, this is one of the most attractive features of using this as a currency in comparison with traditional paper money … and in some cases even electronic fiat currencies. This benefit makes it easier for merchants to sell goods and services in exchange for bitcoins since they don’t have any transaction costs associated with processing transactions when compared with credit cards or PayPal.
One thing that many people don’t know about the bitcoin system is that it operates using a system called the blockchain. A chain is a group of databases containing all of the different transaction histories of the bitcoins that have ever been made. As new blocks are mined by the bitcoin miners, these blockages of transactions become permanent on the chain, meaning that no longer do you need to download and install the software in order to partake in the decentralized ledger.
Instead, all you need is your private key, your private wallet, and the ability to log onto the blockchain to participate in the global transfer of monetary value.
Proof Of Purchase
Now, let’s take a look at how the mining activity actually goes. The protocol used by the this network is called the POTS, or ” Proof Of Purchase Transaction Simplified.” This is a simplified description of the procedure, but it’s essentially what happens when a buyer decides to make a purchase of some kind using their private key.
They create a transaction that is signed by them and then signs another transaction which is then sent to the network for verification. Once all of the necessary approvals are received, the transaction is real and can then be used to make a sale.
In summary, there are plenty of reasons to consider using Bitcoin as a viable investment vehicle. In addition to its trading potential, you also get the added benefits of:
- Little to no transaction fees;
- Protection from inflation and currency manipulation; and
- Freedom from governmental oversight.
But make no mistake. This is not easy money we’re talking about here. This digital asset (or commodity) has come down significantly from all-time highs back in December 2017. So it’s important that you learn how to invest safely if you want to avoid getting burned by buying at the wrong time, like when the price is HIGH.