What exactly is Bitcoin?
Bitcoin is a digital currency network that is decentralized, peer-to-peer, designed to enable online users to process transactions through a digital exchange unit known as Bitcoins. That is a virtual currency, in other words. more info here
The bitcoin system was created by an anonymousprogrammer(s) in the year 2009. Since then, as an alternative to US dollars, euros and commodity currencies such as gold and silver, Bitcoin has gained huge attention as well as controversy.
Before the year 2009, Rise to Prominence Bitcoin had not attained much interest in business and finance. It gained prominence in the period 2011-2012 when it gained more than 300 per cent. Bitcoin’s value has risen by 400 per cent since last year’s August. As a result, the cryptocurrency continues to receive attention from venture capital firms and investors around the world.
In the first half of 2014, venture capital firms in the first quarter invested $57 million in Bitcoin, followed by another $73 million in the second quarter amounting to a total of $130 million, which is 50 per cent higher than the total of $88 million in the last year. This is a complete contrast to the 2012 situation where a relatively small amount of $2.2 million was earned by Bitcoin companies.
These figures show without doubt that Bitcoin is worth your money, which raises the question of how to buy and invest in Bitcoin?
A checklist for new Bitcoin investors Buying bitcoins is the easiest and least difficult way to invest in Bitcoin. There are many existing companies that are engaged in the business of buying and selling bitcoins, abbreviated as BTC, mostly in the US as well as abroad.
Coinbase When you live in the U.S. then the location you are looking for is Coinbase. Coinbase delivers BTC to its customers at an average 1 per cent rate above the existing market level. US residents have the option of synchronizing their Coinbase wallets with their bank accounts. As a result, future payment transactions will be made trouble-free. This company also gives you occasionally the option to buy automatic bitcoin. For example, if you’re interested in buying $50 in bitcoins at the start of each month, Coinbase will allow you to set up an auto buy for that amount.
Beware of the terms and conditions before you start using this service. You will not be able to control the price at which the BTC is purchased every month if you have subscribed to an automated bit coin service. Notice that Coinbase is not operating as a Bitcoin exchange, i.e. buying and selling the coins directly from the company. Since the company has to source the coins from other customers, you can experience delays or disturbances when placing orders during quick moves on the market.
BitStamp meets the specifications of a standard exchange of bitcoins. Bitcoin serves as an intermediary that allows you to transact with other users rather than the firm itself. The liquidity here is higher, and you always have a good chance of finding someone willing to trade with you. An initial fee of 0.5 per cent can be reduced to 0.2 per cent if you sell $150,000 within 30 days.
Alternative ways to buy bitcoins Regional Bitcoins Exchange isn’t the only way to invest in bitcoins. Local Bitcoins are often used for offline purchasing of BTC. The website is designed to link potential purchasers and sellers. The bitcoins are locker in a escrow from the seller and can be issued only to buyers.
Bitcoin isn’t just a phenomenon of modern times. Bitcoin is seen by venture capital firms as a decent long-term replacement for traditional currency. There are uncountable ways to enter the bitcoin investment sphere