Bitcoin is known as the very first decentralized digital currency, they’re basically coins that can send through the Internet. 2009 was the year where bitcoin was born. The creator’s name is unknown, however the alias Satoshi Nakamoto was given to this person. Bitcoin accounts cannot be frozen, prerequisites to open them don’t exist, same for limits on mining rig .
Advantages of Bitcoin
Bitcoin transactions are made directly from person to person trough the internet. There’s no need of a bank or clearinghouse to act as the middle man. Thanks to that, the transaction fees are way too much lower, they can be used in all the countries around the world. Every day more merchants are starting to accept them. You can buy anything you want with them. How Bitcoin works. You should explore bitcoin mining. It’s possible to exchange dollars, euros or other currencies to bitcoin. You can buy and sell as it were any other country currency. In order to keep your bitcoins, you have to store them in something called wallets. These wallet are located in your pc, mobile device or in third party websites. Sending bitcoins is very simple. It’s as simple as sending an email. Invest in bitcoin to get great returns.
You can purchase practically anything with bitcoins.Bitcoin Anonymity.When doing a bitcoin transaction, there’s no need to provide the real name of the person. Each one of the bitcoin transactions are recorded is what is known as a public log. This log contains only wallet IDs and not people’s names. so basically each transaction is private. People can buy and sell things without being tracked.
Bitcoin innovation. Bitcoin established a whole new way of innovation. The bitcoin software is all open source, this means anyone can review it. A nowadays fact is that bitcoin is transforming world’s finances similar to how web changed everything about publishing. The concept is brilliant. When everyone has access to the whole bitcoin global market, new ideas appear. Transaction fees reductions is a fact of bitcoin. Accepting bitcoins cost anything, also they’re very easy to setup. Charge backs don’t exist. The bitcoin community will generate additional businesses of all kinds.
What Makes mining rig So Interesting?
Wondering if you should invest in Bitcoin? If you've been around any kid of financial news lately, you've no doubt heard about the meteoric rise in the world's most well-known cryptocurrency.
And if you're like a lot of people right about now, you're probably wondering, "Bitcoin - yes or no?"
Should you invest? Is it a good option? And what the heck is Bitcoin anyway?
Well here's a few things you should know about Bitcoin before you invest. Also note that this article is for information purposes only and should not be taken as any kind of financial advice.
What is Bitcoin?
Bitcoin is known as a cryptocurrency or a digital currency. It's basically online money. Like any currency you can exchange it for other currencies (like say, buy bitcoins with US dollars or vice versa) and it fluctuates in relation to other currencies as well.
Unlike other currencies however it is decentralized, meaning there isn't any one central bank, country or government in charge of it. And that means it's not as susceptible to government or central bank mismanagement.
Pros of Bitcoin
#1 Easy To Send Money
Because it's decentralized, this also means that you can send a friend Bitcoin (money) on the other side of the world in seconds without having to go through a bank intermediary (and pay the banking fees).
Unlike a credit card charge, Bitcoin transactions are not reversible. So if you send Bitcoin to the wrong address - you can't get it back.
Also, there are a lot of tales from people who have lost their Bitcoin wallet address (through hacking, phones being stolen, virus-infected computers, etc.) and they've completely lost their coins. There's no way to get them back.
For this reason, you really need to know what you're doing and take the time to research how to buy and store your coins properly if you want to invest in Bitcoins - or any other cryptocurrency.
So those are some of the things to consider before investing in Bitcoin. Basically while Bitcoin has a lot of great things going for it - and while it has the potential to change financial transactions as we know it - there is still a lot of risk. There are a lot of unknowns out there still.
If you do decide to buy, take your time and research your options. Don't buy from just any seller. Some of them are trustworthy and run a great business. But there are others that will overcharge you and may not even deliver your coins.
Be safe and do your research first. Find a trusted seller with a stellar reputation - there are quite a few of them out there. And remember the golden rule here - never invest more than you can afford to lose.
The Definition of Bitcoin
Bitcoin (BTC) is a new kind of digital currency-with cryptographic keys-that is decentralized to a network of computers used by users and miners around the world and is not controlled by a single organization or government. It is the first digital cryptocurrency that has gained the public's attention and is accepted by a growing number of merchants. Like other currencies, users can use the digital currency to buy goods and services online as well as in some physical stores that accept it as a form of payment. Currency traders can also trade Bitcoins in Bitcoin exchanges.
There are several major differences between Bitcoin and traditional currencies (e.g. U.S. dollar):
- Bitcoin does not have a centralized authority or clearing house (e.g. government, central bank, MasterCard or Visa network). The peer-to-peer payment network is managed by users and miners around the world. The currency is anonymously transferred directly between users through the internet without going through a clearing house. This means that transaction fees are much lower.
- Bitcoin is created through a process called "Bitcoin mining". Miners around the world use mining software and computers to solve complex bitcoin algorithms and to approve Bitcoin transactions. They are awarded with transaction fees and new Bitcoins generated from solving Bitcoin algorithms.
- There is a limited amount of Bitcoins in circulation. According to Blockchain, there were about 12.1 million in circulation as of Dec. 20, 2013. The difficulty to mine Bitcoins (solve algorithms) becomes harder as more Bitcoins are generated, and the maximum amount in circulation is capped at 21 million. The limit will not be reached until approximately the year 2140. This makes Bitcoins more valuable as more people use them.
- A public ledger called 'Blockchain' records all Bitcoin transactions and shows each Bitcoin owner's respective holdings. Anyone can access the public ledger to verify transactions. This makes the digital currency more transparent and predictable. More importantly, the transparency prevents fraud and double spending of the same Bitcoins.
- The digital currency can be acquired through Bitcoin mining or Bitcoin exchanges.
- The digital currency is accepted by a limited number of merchants on the web and in some brick-and-mortar retailers.
- Bitcoin wallets (similar to PayPal accounts) are used for storing Bitcoins, private keys and public addresses as well as for anonymously transferring Bitcoins between users.
- Bitcoins are not insured and are not protected by government agencies. Hence, they cannot be recovered if the secret keys are stolen by a hacker or lost to a failed hard drive, or due to the closure of a Bitcoin exchange. If the secret keys are lost, the associated Bitcoins cannot be recovered and would be out of circulation. Visit this link for an FAQ on Bitcoins.
Bitcoin will likely gain more public acceptance over time, but its price is extremely volatile and very sensitive to news-such as government regulations and restrictions-that could negatively impact the currency.
Therefore, I do not suggest investors to invest in Bitcoins unless they were purchased at a less than $10 USD per BTC because this would allow for a much larger margin of safety.
Otherwise, I believe that it is much better to invest in stocks that have strong fundamentals, as well as great business prospects and management teams because the underlying companies have intrinsic values and are more predictable.
Disclosure: Victor Liang has has no positions in Bitcoins and has no plans to change his position in the next 72 hours.