What is a Bitcoin

What Is A Bitcoin

What is a bitcoinDon’t worry if you don’t know too much about Bitcoin. It was little known when it first got started in back 2010. It wasn’t until mid 2013 when it shot up from a few cents to more than US$ 1,000 which was it’s first claim to fame. 

Still, by 2015, very few people owned any Bitcoin and the price had receded to around US$ 300 and stayed there for more than a year and the total market at that time was only about $4.4 billion.

It’s only in 2016 that the price of a single Bitcoin had slowly risen to around $700 jumping to $1,200 in early 2017 But from there it has quickly risen, massively, to more than $7,000 in October and November, capturing global attention and stunning investors.  

Which is pretty amazing right! In fact that’s so astounding that there has never been anything like it before. Overall the price has risen almost 75,000,000 percent since its inception eight years ago.

What is a bitcoin

Why Invest in Bitcoin?

The total market is now around $140 Billion, which is significant, but what’s really interesting is it’s about to get a whole lot bigger.

Why? 

  • For one, Bitcoin recently broke through US$ 8,000 per coin and that created a lot more attention globally.
  • Two; Limited Supply – There are only Twenty-One million Bitcoins. Ensuring that’s it value will rise as demand and interest continues to grow.
  • And three; Institutional Investors don’t yet own Bitcoin.

Institutional Investors

Institutional investors are hedge funds, big money managers, sovereign wealth funds with billions of dollars to invest. Usually these big money investors are the first to invest in ground breaking technologies, but with Bitcoin it’s been different.

As institutional investors collectively manage trillions of dollars it shuts them out of any market that is too small ($100 Billion or so) and also they need to be able to hedge their bets. So until now institutional investors haven’t been able to do that with Bitcoin. 

But that’s about to change. And when that happens it will send billions, perhaps even trillions of dollars flowing into Bitcoin, because now it has the worlds attention.

Limited Supply

What is a bitcoinThere are only 21 million bitcoins that will ever exist and 16.7 Million of those coins have already been mined. Meaning that nearly 80% of Bitcoin’s total supply is already in circulation.

The rest will slowly enter the market over the next 123 years. Ensuring that’s it value will continue to rise as the demand begins to exceed supply.

To put Bitcoins ‘limited supply‘ into perspective, there are some Thirty-five million, US millionaires, but there are only, twenty-one million Bitcoins, so not every millionaire can own a Bitcoin.

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What is Bitcoin About

What is Bitcoin about

What Is Bitcoin About?

This is one of the most frequently asked questions in the world right now.  To make it simple, Bitcoin is a digital version of money where the transactions are done online.

It is a medium of exchange just like your normal everyday currency such as the USD, but designed for the purpose of exchanging digital information through a process known as cryptography”.

What this means is that these transactions don’t need validation from the banks or the government to work or thrive, due to its decentralized nature. The digital transactions take place directly between buyer and seller without an intermediary, such as a bank, to collect and distribute funds. The transactions are recorded in a distributed ledger called a blockchain.

The Blockchain

This blockchain technology may be the most important single development since the invention of the internet itself. So, what is Bitcoin about? Well, it’s going to change the way business gets done, how documents are exchanged, how real estate is sold and registered, how stocks and bonds are tracked, how inventory is managed and how people transact their financial affairs. It’s going to be a game changer. 

What is Bitcoin aboutBitcoin has certain rules, also known as the Bitcoin protocol, which makes it work. The ingenious part of Bitcoin is not necessarily the creation of the currency but rather the creation of the Bitcoin protocol. 

Bitcoin successfully found a way to build a decentralized digital transmission system which means the network is powered by its users without having any third party, central authority or middleman controlling it. Neither the central bank, nor the government has any power over this distribution system.

History Making Technology

After decades of over-regulation and central bank meddling, the financial markets are anything but free. The problem with a centralized network in a payment system is that it’s done by a central server that keeps track of your balances and they charge you expensive transaction fees for the ‘pleasure of doing business‘ with them.

Now this oppressive government controlled system has reached a tipping point. For the first time in history, technology makes it possible to transfer ‘property rights‘ (such as shares, certificates, digital money, etc.) in a fast, transparent and very secure way regardless of acceptance or approval of governments or the participation of traditional banks.

The first ever-successful cryptocurrency (Bitcoin) emerged from the invention by Satoshi Nakamoto. This was then followed by other types of crytocurrencies competing with Bitcoin.

What is Bitcoin about

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How To Buy Bitcoin

How to Buy Bitcoin With Cash…

or, Credit Card, PayPal, Bank Transfer, or any other payment methodology and   currency you desire (well almost). 

how to buy bitcoin with cash

Bitcoin is the first ever cryptocurrency invented and remains by far the most sought after cryptocurrency to date. Bitcoin is known as the digital gold standard in the cryptocurrency network and it is the pioneer of Blockchain Technology that made digital money possible.

It is the first ever decentralized peer-to-peer network powered by its users without any central authority or middleman which means, no unnecessary costs are included in the digital money transaction.

Buying Bitcoin

how to buy bitcoin with cashEven though the price of a single bitcoin has exceeded the price of an ounce of gold. It has been very volatile and its price has fluctuated wildly, – adding to its appeal as speculative investment opportunity.

However you don’t have to buy a whole coin. You can buy a portion of a coin 0.0000001 for example.

The problem is that for many, actually buying Bitcoins is not so simple, as most banks and financial services agencies won’t allow you to buy them directly.

But once you have some (Bitcoin) you can then buy other cryptocurrencies and take advantage of the many opportunities and benefits that cryptocurrencies offer.         (For more on this see my other post on Cryptocurrencies)

There are Lots of Exchanges to Buy and Sell On

There are lots of exchanges and wallets and platforms to buy, sell, trade and exchange cryptocurrencies. (I have not tried or researched them all).

However, I have researched and tried quite a few and as a result I have settled on the ones that I believe give you the most flexibility and freedom to buy quickly and simply and that I personally use, because they work for me.

So, l will tell you, based on my research and experience how to open an account and how to buy bitcoin using cash, credit card, PayPal and numerous other payment methods and with almost any type of currency. 

However first you will need to open some accounts, (don’t worry they are free and pretty easy to do). It may also appear to be backwards but I will explain why as we work our way through the process.

How To Open An Account

Step One: Opening a Trading Account (to Buy and Sell)

 Understand that there are 3 types of cryptocurrency exchanges:

  1. Trading Platforms

These are websites that connect the buyers and sellers and they charge a small fee for a completed transaction.

  1. Direct Trading

These platforms offer direct person to person exchange. You may exchange with individuals from different countries as well as in different currencies. Direct trading does not necessarily adhere to the current market price, as the individuals trading may set their own exchange rate. This is where you puchase Bitcoins.

  1. Brokers

These are websites that anyone can visit to purchase cryptocurrencies. However, the price is set by the broker. Cryptocurrency brokers are similar to foreign exchange dealers and they require a lot more information and verification of ID to set up.

We are going to be using two types of exchanges, the Trading Platform and the Direct Trading. We will not be using Brokers.

Trading Platform

The reason I have selected and like this particular platform is because it has many of the more 1000+ cryptocurrencies that are available (Not all of them) but enough of the cryptocurrencies that I like to trade are on this exchange.

It’s is not the only exchange that you could use there are plenty of others and you are free to use whatever trading platform you wish. But for now I will walk you through using this one. However it does not have a mobile app. So, you will need to use your computer, not your phone for trading.

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What is a Cryptocurrency

What Is A Cryptocurrency

What is a Cryptocurrency

The easiest way to explain “what is a cryptocurrency” is to say that it is a digital currency rather than something physical you can hold in your hand and are primarily exchanged over the Internet. They also operate outside of traditional banking systems and government control. Essentially they are invisible.

Why Is That a Good Thing?

Because they CANNOT be manipulated by the Federal Reserve, or any other of the numerous central banks around the world. So they cannot be inflated or devalued by them, nor can they be seized or confiscated by any Government. 

Which is why Cryptocurrencies are probably a more “honest” and “secure” form of currency,  than any other in the world today.

I mean, Just look at how much trouble the global economy is in. With the central banks printing massive amounts of money, government Bailouts, bank Bail-ins (which is where a bank take depositors money) and loads of financial ‘stimulation‘ and manipulation going on.

Its created a world of fiat money that has lost massive value, resulting in one messy financial crisis after another to the next and so on.

But that’s not all…

Government Inference with Traditional Money

what is a cryptocurrency

Ten Thousand Dollars

Just take your own money that you have earned legitimately. Most people are unaware that under the Bank Secrecy Act, if you withdraw $10,000 or more of your own money, your bank is required, by law, to file a Currency Transaction Report with the Financial Crimes Enforcement Network (FinCEN).

This is a special agency that’s tasked with supposedly combatting money laundering, terrorist financing, and other ‘financial crimes‘.

And your bank is also required to file a Suspicious Activity Report with FinCEN.  If it believes you are trying to avoid triggering a Currency Transaction Report by withdrawing smaller cash amounts. This then puts all your past and future cash withdrawals under the microscope.

And If That’s Not Enough…

Taking out your own cash isn’t the only activity the government deems suspicious.

Activities, such as,

  • Depositing $10,000 or more in cash,
  • A foreign exchange transaction worth $10,000 or more,
  • Taking more than $10,000 in cash in or out of the U.S,
  • Receiving more than $10,000 in cash in a single payment as a business, 
  • Or having more than $10,000 in accounts outside the U.S.A, for example.

Any of these and more will trigger a Suspicious Activity Report, even if you are an average law abiding citizen with nothing to hide.

In fact if you are an American citizen, irrespective of where in the world you reside or where you earn an income, you must file annual tax returns and declare all bank accounts and assets (including those of your non-American spouse) to the IRS, just because you are a US citizen.

Again, not many people are aware of the 2010, Foreign Account Tax Compliance Act (FATCA) Not only does this new law impact every American living and working overseas but every U.S born person on the planet.

It also requires all non-US (‘foreign‘) financial institutions, such as banks, to allow the IRS to search through customer databases to identify customers suspected of being US persons, and to disclose the account holders’ names, addresses, and the transactions of those accounts.

“Welcome to the Land of the Free and the Home of the Brave

Then There Are The Civil Asset Forfeiture Laws

That most countries have in some form or another.  Under these ‘civil asset forfeiture laws’, police and federal agents can confiscate any cash you might have, if they ‘merely suspect’ that it was involved in a crime.

They don’t need to file any criminal charges or prove any wrongdoing. They only have to ‘suspect’ or say they ‘suspect’ the cash ‘might be’ involved in a suspected criminal activity. No proof on their part is required! And they can keep any seized cash for themselves. 

According to The Washington Post, since 2007, the DEA alone (just one agency) seized more $3.2 billion in cash from Americans in cases where no civil or criminal charges were brought against the legal owners of the cash. Over the past decade, the federal government has seized more than $28 billion.

What’s disturbing about this, is that in 2015 alone, civil forfeitures, exceeded the amount stolen by all the robbers.

Yes, the U.S Government stole more from the American public through confiscations, than what was stolen outright from robberies and muggings.

But That’s Not All…

Just having this discussion could soon be a considered a crime. I’m not kidding! Even in the USA, this might well become an illegal conversation.

You Don’t Believe Me?

Most Americans, are unaware that in December of 2016, congress passed the Countering Foreign Propaganda and Disinformation Act (CFPDA). This new law removed all your rights to ‘freedom of speech’. This new law states that if an individual’s ‘statements‘ disagree with “accepted truthsthen they are in breach of this new law.

“What is OR are ‘Accepted truths’ is yet to be tested by the courts. But  the type of information on this very page could be deemed to be an ‘unacceptable truth’ – about the government” and be in breech of this new law.

A Growing Alternative to Traditional Money

So it’s no surprise that Cryptocurrencies are becoming an Alternative to Traditional Money because it can be used outside the banking system and immune from theft by governmental institutions, and could be a way of protecting yourself from further attacks upon your rights and freedoms from your own government.

As a result of these infringement on your basic rights and rapidly shifting times, cryptocurrencies are attracting a lot of interest from everyday people.

As of June 2017 total market capitalization of cryptocurrencies was larger than 100 Billion USD and record daily volume is more than 6 billion USD.

What is CryptocurrencyThere are now more options than just Bitcoin, there is Ethereum, Litecoin and Ripple, and many others.

what is a cryptocurrency

The first known cryptocurrency

Bitcoin

You have probably heard of ‘Bitcoins‘. It was the first known cryptocurrency to be used for a commercial transaction back in May 2010, when a web developer purchased two Papa John’s pizzas using 10,000 units of Bitcoin. At that time that many bitcoins was roughly worth about $30.00.

What you may not know, is the value of Bitcoin has been skyrocketing ever since. By 2014  (just four years later), that same $30 of Bitcoin units, was worth more than $5 MILLION.

“Today, that same $30 is now worth a life-changing $20 million!

What is Cryptocurrency

Have I Got Your Attention?

what is a cryptocurrencyThat is an astonishing increase in value, from what bought a couple of pizzas a few years ago, to what could buy you a very nice mansion today.

There are numerous reasons why you should invest in cryptocurrency and the first of which is that soon millions of people will be investing in them, once they realise how powerful and secure this type of currency is.

You don’t even need to buy a whole coin, you can buy units and pretty much in any currency you want.  

This means it’s A HUGE opportunity for you as a CRYTO investor as well as an online entrepreneur to get started before it becomes mainstream:

A Bitcoin Overview

See the 3 minute Video below to get a quick overview of Bitcoin.