Bitcoin is a decentralized currency or cryptocurrency, that was invented in 2008. It was invented by Satoshi Nakamoto, who also made the first Bitcoin transaction. There were cryptocurrencies in the past, but they did not last due a problem called double spending. Double spending was a problem because these currencies did not have a system to track whether a crypto unit had been spent already. There was no way to document the transactions made between parties. Bitcoin solved the problem of double spending . Below are some of the pros and cons of Bitcoin?
What are the pros of investing in Bitcoin?
Decentalized currency. There is no government involved . Decentralized means independent of the fiat banking system. This means that you will not fill out any official paperwork or forms to fill out to open a Bitcoin wallet
The people’s currency. Bitcoin is traded from person to person on a real time platform, meaning that all transactions are documented. Being as though there is no government influence, the value of Bitcoin is determined by the value that people put on it.
Anonymity. You don’t have to fill out any official paperwork, so your information is never shared. All Bitcoin transactions are made through the use of a private key. A private key is a 34 digit number that is given to someone who wants to deposit money into your wallet ONLY. No one can withdraw money with these numbers
Peer to peer network. Solves the problem of double spending and shady transactions. because it shows all transactions in real time. So you can clearly see all Bitcoin transaction, past and present. Peer to peer networks also make it easier for people to trade with one another, by giving them a platform where they can easily post asking and bidding prices.
No inflation. There are only a 20 million Bitcoin mined every year. This solves the problem of inflation. Controlling the amount of Bitcoin mined will stop the
Bitcoin market from becoming over-saturated. This makes Bitcoin more valuable with time.
Why should I care about Bitcoin?
The dollar is fiat currency and is not backed by anything solid, meaning that when the dollar has completely lost its value the whole monetary system will collapse. So now is the time to start investing in Bitcoin, gold, and other precious metals, if you can. I know that investing in Bitcoin seems like a long shot, especially since it is worth so much.
Just like anything you have to start out slow and take baby steps. There are companies that can you started for around $250 . It will take a little time to accumulate but it’s worth a shot. You never know how much Bitcoin is going to rise in value. In 2009, Bitcoin was about $5 USD a coin, now it is worth about $4000USD a coin. Do you think the people who kept them thought they would ever be worth that much money? No. As a matter of fact , those people were just like you. They were taking a chance on something that may not have gone anywhere. These people are probably rich by now or have a pretty penny , at least. This is what investing is, it is taking a chance on something that is not promised to do well.
However, the people who brought Bitcoin in the past do not have the privilege of sitting where you are. You have the luxury of knowing all of the history and transactions that have ever taken place, because they are documented for you online. You also have the advantage of learning from people who know the market and have already been through the ups and downs of investing in Bitcoin. As I said before, Bitcoin is the people’s money so you are your broker and agent. If you decide to invest you will have FULL CONTROL of all of your transactions. The only time a company interferes is when they take a trading fee, for using their platform to make a transaction.