What is Bitcoin?

Bitcoin

Bitcoin is a peer-to-peer currency.

Peer-to-peer means that no central authority like the government issues new money or tracks transactions.

These tasks are done collectively by the network itself.

What is a Bitcoin

The creator of Bitcoin is Satoshi Nakamoto – but nobody knows who he, she or they are. Bitcoin was the first cryptocurrency. This is a type of money not controlled by any banks or governments. Bitcoin is decentralized and open-source. Everything began in 2008. At this time Bitcoin had zero value. The success Bitcoin has is due to the fact that it uses the blockchain, a network of miners and nodes, which will change finance and many other things like the internet changed the distribution of news and knowledge…

In 2011 Bitcoin launched on public exchanges and 1 Bitcoin(BTC) had a value of $ 0,31

In 2012 1 Bitcoin reached a value of $ 1200 per coin and right now it is valued over 1550$ per coin! Update: the price constatnly changes – at the moment, as of May,24th,2017 the price for one Bitcoin is over 2300 USD!!

Early adopters who bought some Bitcoins in 2011 and sold it when the worth per coin sky-rocketed became millionaires. Unfortunately, it is much more expensive today to buy Bitcoins but there are over 800 other cryptocurrencies. All cryptocurrencies which are not Bitcoin are called AltCoins – Alternative coins.

If you had bought Bitcoin for $27 in 2011 and sold those coins in 2014 you would have been worth $ 886.000 !!! Here is the full story. This is just one example to make you aware of what a huge opportunity this was/is.

Unfortunately, it is much more expensive today to buy Bitcoins but there are over 800 other cryptocurrencies. All cryptocurrencies which are not Bitcoin are called AltCoins – Alternative coins.

Bitcoin is very volatile in it`s worth but it gains more and more worth per coin. It is already worth more than an ounce of gold! Experts predict it to reach 3000$ per coin by the end of 2017 and between 500.000$ and 1 million $ per Bitcoin in about 10 to 15 years from now.

Bitcoin

 

Billionaires, banks, and governments are investing into Bitcoin and you can do so too. You don`t need to purchase 1000s of $ worth of Bitcoin – in fact, 1 Bitcoin consists of smaller parts called Satoshi – named after it`s inventor.

1 Bitcoin = 100.000.000 Satoshi. This means you can purchase Btc for whatever amount of $ you want.

 

What Makes Bitcoin So Valuable?

First let’s look into what money actually is: Money is a way of transferring ownership.  It is a social construct in a society and a medium of exchange. Many things can be money: seashells, gold bars or coins, FIAT currency($, €, YEN,…)… and it is constantly evolving. With cryptocurrencies, we have reached the digital age.

4 General Properties of Money:

  1. Durable. It retains it`s shape and form and substance over a longer period of time
  2. Divisible. It can be divided into smaller parts
  3. Transportable. Money can easily be moved from one place to the other.
  4. Noncounterbeitable. It is hard to duplicate it.

That`s why gold is such a good medium(but hard to transport and to divide…) to be money.

Bitcoin is even better as it meets all criteria of properties of money.

Centralization: Money, Government, Power, A select few people have all the power. The masses have little to no power.

Decentralization: This is a network of interconnected people, nodes, dots… that share equal power! This is a self-selecting meritocracy. No permission of someone else is needed. Technology moves towards decentralization(think of internet, money, media..)

FIAT Currency:

This refers to the paper money we are using right now: USD, Euro, Yen and so on.

It is centralized and created by banks. Its power comes from the government and their ability to tax people.

Problems with centralized money:

$69 TRILLION in global depth, Bank runs, Bail-outs and bail-ins, Hyperinflation(Venezuela, Zimbabwe… War on Cash(India, Argentina), Corrupt politicians,…

Bitcoin = trustless money 

(you don`t rely on having to trust an individual to do the right thing, to do what is best for you). It is the perfect example of an autonomous free market.

Bitcoin is a math based(not dependent on politics) fully transparent protocol, it is governed by a pre-determined social contract.

The supply is capped: There will never be more than 21 million Bitcoins.(Think of paper money: printed on demand…- inflation,..)

Bitcoin works because it is open source. People see that it makes sense and they trust it. Miners cooperate voluntarily. There are checks and balances between miners, nodes, and developers. Bitcoin gives the power back to the people – to the individual. Individuals are incentivized to follow the rules of the network as it is of their best interest.

Advantages of Bitcoin:

You are in 100% control of your money: no downtime, no forms to fill out, no spending limits, no arbitrary restrictions.

Borderless, permissionless, trustless money

Store of value – like gold the supply is capped and the price increases as demand increases

It is a non-correlated(completely new) asset and can act as a hedge in a diversified portfolio. against inflation, against over taxation.

It can not be controlled by any government because the network would have to agree to it.

With Bitcoin it is possible to make institutions completely transparent – think of government spending,…

Peer to peer – you can send any amount of BTC you want – no matter how little or how big the sum. Total privacy as no personal information is shown on the blockchain.

Changes lives because people who work abroad and send money back home to their loved ones don`t have to pay those huge fees and the money is received the same day.

 

What Ways Are There To Profit From Bitcoin?

Here are just a few:

You can invest into Bitcoin – you just purchase Bitcoin and hold it, then sell it once it is worth more and profit this way.

Or you can mine Bitcoins – DIY or Franchise systems are available.

Another great way is to trade Bitcoins on public exchanges or you can do Arbitrage(buy low on one exchange and sell it high on another one).

You can even use the revenue share model to profit from Bitcoin or use a learning platform with additional earnings from a forced matrix.

This list is just what I personally do. I am sure there are more ways to earn from it.

 

Where And How To Buy Bitcoin?

There are many places where you can purchase Bitcoins. Make sure to check out which option is available in your country.

In Person:

localbitcoins.com

Tip: Meet in a public place where other people are. Wait for at least 3 Bitcoin confirmations before you hand over your cash. This is an

Advantage: This is an anonymous method to buy.

Downside: Sellers will charge about 5 to 10% more than the current price of Bitcoin.

Bitcoin atm – Find the a Bitcoin atm near your location here:

https://coinatmradar.com/

Online:

Bitcoin Exchanges

Bitcoin Exchanges are marketplaces where you can buy and sell Bitcoin(Coinbase,…)

How to find Bitcoin Exchanges: Go to www.coinmarketcap.com, click on Bitcoin, click on markets and you will get an extensive list of Bitcoin Exchanges.

Decentralized Bitcoin Exchanges: Bitsquare..(downside: not so liquid on the order books)

Advantage: Best prices and lowest fees

Downside: KYC(Know your customer) verification is required

Some good exachanges:

Coinbase (follow the link and get 10$ for free once you deposited 100$)

www.cubits.com

https://cex.io/

https://www.kraken.com/

 

Owning Bitcoin

All Bitcoins are stored on the ledger through cryptographic key pairs.

Public keys and coins can be seen by anyone. They are used as a receiving address.

Private keys are what give you ownership. You need to keep them secure because they are used to access and send coins. Private keys will often be encrypted and hidden by your software wallet but you can get access to them.

 

Bitcoin Wallet

Read more in our Wallet section – Go to wallets

 

How to Spend Bitcoin? 

There are many places where you can already spend Bitcoin online. Here are some places where you can pay with Bitcoin already.

This is just a tiny selection. Bitcoin is already being treated “just as money” in Japan and Australia and many more countries are to follow their lead.

Bitcoin accepted

Brandnew:

Soon a Bitcoin Debit Card will be available and you can use it on any visa acceptance point – no matter what country or website.

Paycent Bitcoin Debit Card

You can get early access by clicking here.