Everything You Need To Know About Bitcoin Digital Currency
Bitcoin, a virtual currency not issued by any government, appeared in 2008 in the discussion group “The Cryptography Mailing.”
At that time, few imagined the appreciation and importance it would have in the future. Today, after being the currency that most appreciated in 2016, it started to draw more attention, especially in Nigeria, but still causes doubts.
With that in mind, Infobusstop has created a questionnaire to clarify the cryptocurrency.
What is Bitcoin?
Bitcoin is a virtual currency, a cryptocurrency, but the “virtual banknotes” are not issued by any government and do not have a regulatory body – which makes their use somewhat difficult and raises many doubts about the what can and cannot be done with this virtual currency.
The biggest reason alleged by people who buy Bitcoins is for investment: you buy the currency expecting it to appreciate a lot and, thus, assume a gain in value.
The use of Bitcoin is seen as the future by many experts and some countries are already finding a place in their economy for cryptocurrencies. Japan has already regularized digital currency as a form of payment and Russia has already announced plans to do the same in 2018.
Is it possible to make purchases with Bitcoin?
Yes. Cryptocurrency is like any other type of money, purchases can be made at brands like Dell and Tesla, on the WordPress blogging platform and also on the music site Soundcloud.
It’s also possible to make money transfers on the internet, purchase digital games and donate to well-known global institutions, such as Wikipedia or Greenpeace.
Paying for hosting, general merchandise and online products are also part of the wide variety of payments that can be made with Bitcoin.
Currently, there are several online retailers, stores and brands that are joining Bitcoin as a way of paying for their products and we believe that over the years several brands will adhere to this technology.
How does Bitcoin appreciation work?
Not knowing where to invest their money, many people chose to invest in Bitcoin. The appreciation of the digital currency was significant between the end of 2014 and the beginning of 2015, with a growth of 92% despite the economic instability.
Currency appreciation works according to demand and companies that are adhering to this form of payment. As it is a limited currency, the price ends up being much higher (the demand is not so great).
In recent years, the valuation is constantly growing, but risking an average level for the coming years would be irresponsible.
Who created Bitcoin?
Since the advent of Bitcoin, the creator’s identity has never been revealed. Not long ago, under the pseudonym Satoshi Nakamoto, the creator revealed his identity and is called Craig Wright, an Australian entrepreneur.
When is it worth investing in Bitcoin?
It is unpredictable. There is a cost-benefit ratio (and opportunity cost) as in any other currency. There is no way to predict a good time to invest in Bitcoin. The price is determined by the law of supply and demand, and is still quite volatile. It is worth remembering that, as it is an easy and practical currency, it is attracting more and more customers, but it is limited and scarce in the market.
What are the tips to succeed in Bitcoin investment?
1. Take it easy.
Bitcoin is a long-term investment and should not be the sole bet of any investor. Making money overnight is the dream of most investors, but it is not the reality. A large price variation can result in profit or loss, depending on the initial investment.
2. Bitcoin has been growing very fast
There are opportunities, but also risks. Its future is unpredictable, it is still a risky investment, but not as much as it was in the year of its emergence. Planning and studying your investments is always a good way out.
3. Be aware of growth
The scarcity of this currency is enormous and the demand is growing. The growth potential of Bitcoin is very large. One of the great inventions of technology in recent years is that it has a wide range of advantages and benefits that conquers more and more customers due to the ease, safety and speed of purchases.
How to open an account on a bitcoin exchange abroad?
It is possible to buy Bitcoin in international markets, such as: Coinbase, Circle, Kraken, Bitstamp, DriveWealth and SpectroCoin. The account opening process is easy.
First, you need to connect a checking account to your account on a Bitcoin market or exchange, and that market must be available in the country of your target account.
When choosing your Bitcoin purse, you must enter the website to register. The documents required to register on most grants are: ID, passport, proof of residence and a letter from the bank or extract from previous months.
In just a few steps, you open your account on a Bitcoin exchange and you can start investing.