The world is becoming even more reliant on the internet and so is online transactions. Bitcoin continues to be a fascinating and complicated new-age currency that is defining the way we pay for goods and services online. Right now, you can pay for anything using bitcoins, be it at food stores, supermarkets, consultancy services, limo service, financial services, and virtually any online service. It is a currency that is designed to pay for goods and services just like the way you would do with Euros and Dollars. However, bitcoin is decentralized, digital and pseudo-anonymous. This currency was developed in 2008 by Satoshi Nakamoto.
How to get started
First, you need to understand that bitcoins are not entirely anonymous. Talented hackers and government officials can track almost anything you do with Bitcoins, especially if identities are tied to addresses of users. To get started in bitcoins, you can buy using hard cash, debit or credit cards as well as wire transfers. You will need to have a bitcoin wallet which can hold your money. Another way of getting Bitcoins is through mining. Bitcoins miners make use of special software to solve math problems and then they are issued with a certain number of bitcoins for solving those problems.
The mining and the process of acquiring bitcoins are completely legal. Other laws involving bitcoins are still evolving, but as it remains, it is very legal. You can use bitcoins to purchase anything you want. In most cases, people use bitcoins to transact in the dark world market. The safety of bitcoins is a topic that draws a lot of debate. Just like any other money wallet, hackers will always be after your bitcoins.
Investing in Bitcoins
Now that we have discussed the basics of bitcoins, the real issues remain on whether to invest in this currency or not. There is no a straight answer to this. First, you need to understand that mining bitcoins are a very expensive venture. You need to understand that bitcoins are not regulated by an agency and this is the main reason behind its shaky fluctuation. Bitcoin is not traded on the stock market and thus it cannot be traded via a brokerage. Its demand is very high but to succeed, you need to buy and hold it. You buy and hold with hopes that it will appreciate in value over time.
Bitcoin is the most commonly known form of cryptocurrency, but it is not the only crypto on the market. Other alternative cryptocurrencies on the market include Ethereum, Litecoin among others. Unlike bitcoins, traders of Ether can only operate it through its own network. Ether is not intended for everyday use as compared to bitcoin. On the other hand, Litecoin can be mined at home by anyone with a computer. A litecoin represents a peer to peer currency that allows for instant and a near zero cost payment to any person in the world. The popularity and value of bitcoin continue to rise mostly because of its relative anonymity. However, bitcoins can be used to every day to day transactions because it is legal.