If you’re not familiar with much about Bitcoin This guide is ideal for you. The Bitcoin digital currency was fairly inaccessible until the year 2017.
After the explosion of the Great Bitcoin Bubble of 2017 In 2017, almost all people in market, both emerging and developed, knew about Bitcoin regardless of whether they purchased any or not. Bitcoins recent rise towards the $10,000-mark appears to set a new level to the crypto.
The Bitcoin fever is beginning to increase in intensity according to some experts who predict an increase to $50,000. If you are looking to position you in the event of a Bitcoin bull-run, you should be aware of the possibilities that are available in the current market.
If you are positioned to profit from the development in the future Bitcoin bubble, you are able to gain in value in dollars, which could make you financially secure for the rest of your life. This guide will provide some strategies that you can apply in order to make Bitcoin and make a better future for yourself in the world that is based on digital currency.
A Brief History of Bitcoin
The way we think about money changed when on October 31, 2008 „Satoshi Nakamoto“ published a whitepaper that described a peer-to-peer electronic cash system. Bitcoin was only an idea for many years before it was noticed by traders.
In the beginning of Bitcoin’s growth up to 2010 the world was unaware of the future value of bitcoin. The only people who knew about Bitcoin were gamers and tech-heads. In the beginning phase of cryptocurrency’s in their early years that one of the most costly financial errors of all time took place. British Bitcoin Profit is a cryptocurrency exchange robot that Artificial Intelligence to place orders in crypto exchanges faster than human traders.
On May 22 on the 22nd of May, 2010 Laszlo Hanyecz, who is an avid Bitcoin enthusiast, completed the the first Bitcoin transaction. Laszlo purchased two Papa John’s pizzas, and then paid for the delivery using 10,000 Bitcoins. Based on Bitcoin’s current price, which is at around $10,000 mark, this would make it a total of $50-million per pizza even before we add the tip.
This particular event is right up with Microsoft founding father, Ronald Wayne, who took his 10-percent stake out of Microsoft for $800. The stake would be worth about $90-billion. Bitcoin received some attention in the gaming industry in the years to come however it was not until Mt. Gox was introduced in the year 2011 that Bitcoin became a household name.
Seven years later, we’re at the point to Bitcoins eleventh anniversary. Take just a moment. Bitcoin is only 11 years old in terms of technology. The magnitude of the disruption that this currency has caused in the last seven years is quite amazing to see.
Japan recognised Bitcoin as a valid currency back in 2014 and several other countries have followed suit. Bitcoins ATMs aren’t readily accessible in a lot of countries in the emerging and developed markets. Today , many retailers take Bitcoin as a form for payment. The cryptocurrency is even used in popular media in shows such as „Mr. Robot.“
Bitcoin is just beginning its journey, and still has a long way take in the near future. We don’t know where it’ll eventually end up. Some analysts claim that Bitcoin could be the next big thing in the world of finance. Others say there are real dangers to the existence of the cryptocurrency market.
There is no way to know what the future is in the world of digital currencies. But there is one thing that is certain; they are a fresh start in the world of finance. As governments try to incorporate crypto in their understanding of the world economy, many people in the business are joining the crypto bandwagon.
Facebook recently announced plan to introduce „Libra,“ a cryptocurrency only managed by Facebook. But, governments weren’t thrilled with the idea of money-launderers as well as drug dealers being in a position transfer money across borders in order to avoid capital control. This is why Libra has been snubbed by the majority of major tech companies that support the new cryptocurrency.
But, Bitcoin remains the most well-known digital currency. When you look at the daily trade volumes in the crypto market, and the market cap of all currencies, it’s evident it’s true that Bitcoin remains the sole genuine game on the table.
Read: Should You Invest in Bitcoin? Complete Beginner’s Guide
A Brief History of Bitcoin Bubbles
The Great Bitcoin Bubble of 2017 has made every financial bubble before it appear to be a normal daily routine on the NYSE. After hitting peaks of almost $20,000 per coin, the Bitcoin price dropped to $3300.
The cryptocurrency has slowly returned to the $11,000 level in the next year and at the beginning of Q4 2019 The Bitcoin value is now $8,300 after a drop from the $10,000 mark.
The Bitcoin Bubble of 2017 caught all of us off guard, even the most experienced Bitcoin supporters. The rise in Bitcoin’s value from $4,000 to $20,000 took less than nine months and the majority of economists haven’t seen something like this in their lives.
When the price reached the $10,000 mark for the first occasion, people around the globe began to experience Bitcoin fever. The climb to $20,000 only took two months The world was convinced that Bitcoin could be worth $1 million coin.
The craze was only for a short time. The cryptocurrency plummeted over in the beginning of the year and many investors suffered an unpleasant experience during the process. In the midst of the hype there were stories of people who did stupid ways to get Bitcoin.
People who took out mortgages on their homes in order to purchase Bitcoin were commonplace, as the reports of scams involving mining firms and cryptocurrency continued expand. The ICO popularity that came from the growth of the Alt-coin sector also cost investors their clothing.
As FOMO (fear of being left out) increased in the wake of Bitcoin and ICOs, many took on the risk with everything they owned, and then lost everything they owned.
Millennials and Bitcoin
Although it’s been through the largest ever financial crisis, Bitcoin still has a large and loyal base of people who believe in the crypto. The millennial generation is the largest of users, miners and also holders (HODLer’s) for Bitcoin. The millennials were born in the early days of the age of information. This means that they are the first generation to be tech-savvy.
Many millennials grew up with smartphones, and they know how to make use of devices and internet access to earn money. Today, millennials make up over 60% of the population, and they are beginning to transition to the stage that sees them buy homes and begin families.
This means that Bitcoin continues to be a major role in the lives of millennials in the near future. As more merchants open their doors to accept Bitcoin payments, the Bitcoin network expands. The only thing that stands in the way of Bitcoin in becoming next global Reserve currency will be the state and the general acceptance.
Governments will not allow Bitcoin to be an official reserve currency. National and reserve currencies are the method of tax collection from the public. Because Bitcoin is virtually untraceable it is impossible for governments could accept it for tax payment. So, they’ll choose to ban Bitcoin before they will accept it.
But, millennials are comfortable with working without the system of authority. In the event that you’re an tech-savvy young person locked from the system of finance because of being in default on student debt, Bitcoin offers a new perspective on your life. If you’re aware of the ropes it is possible to pay for all the things you need with Bitcoin and use it to pay for transactions too.
Read: Best Investment Ideas for Millennials: Complete Guide
Is Bitcoin Money?
If individuals are prepared to make use of Bitcoin as a method to pay the balance of their debts, besides taxes This raises the question, is Bitcoin money? The sound money has several aspects that merit a mention. It’s first, it can be used for the payment of debts. Additionally, it is an fungible value, which means each unit is equal to or divisible by an additional. It can be portable, durable and is a storage of value for a long the course of.
If we take a look at the oldest type of currency gold, it is a perfect fit for this description. But the massive weight of gold bullion could make it difficult to transport large amounts. But, it is an excellent store of value over time and is divisible, fungible and long-lasting.
If we evaluate to the US Dollar to these same standards, we are in the middle. Since the introduction of the Federal Reserve in 1913, the Greenback has lost more than 96 percent in its buying power. It’s not enough to make fiat dollars an extremely useful asset to investors.
But, the dollar is king since it is the sole control of the world’s credit system, as the world’s leading reserve currency. If countries wish to pay their international obligations, they have to do so in dollars. Thus, the Greenback has gained its status as a currency due to its use in the entire world makes use of it to settle debts as well as pay taxes.
Bitcoin has the qualities of divisibility, fungibility, and is a recognized method of exchange. But, it’s not difficult loss of your Bitcoin wallet keys as well as your Bitcoins. Bitcoins are easily hacked with hot wallets, and the value is not stable enough to function as a value store.
We can therefore conclude that Bitcoin does not meet all the criteria needed to be regarded as a sound currency. But, in the current dollar-based world it’s evident that money has developed into a completely different species.
Read: Is Cryptocurrency the Future of Money? Let’s Take a Look
How to earn money with Bitcoin
Once you’ve got an understanding of Bitcoin Let’s take a look at ways to earn money from this digital currency. The following tips were outlined to get you started in learning more about the ways Bitcoin can boost your earnings.
Choose a strategy that you can understand and begin to implement it now. There’s ample information online that can help you understand the method described below. But, the most important thing is you act. If you take actions, you’ll be ahead of your peers and get yourself a place in the future digital economy.
Buy and „HODL“
When people consider investing into Bitcoin They imagine the massive profit they will earn by selling their Bitcoins to dollars when prices rise. This method is known as holding and buying. It’s a common method employed by investors who invest in gold, and is employed within an investment portfolio to way to protect against the volatility of markets.
Typically, investors put the majority of their portfolios to bonds and stocks with the remaining 5-10 percent to gold bullion that is physical as bars or coins. There is a reason why Bitcoin supporters believe that the same principles of buying and holding applies to Bitcoin too. The true believers in cryptocurrency will promote their buy-and-hold strategy as the reason for why the Bitcoin price is steady.
In a sense, it’s an accurate assertion. In the section on the value of money in dollars It requires trust and participation from the general public to assign the money any value. But, this doesn’t mean you must use a buy and hold strategy to prove any value in bitcoin. Bitcoin market.
Bitcoiners who hold for the long-term use the term „HODL’ers,“ a misspelling of „Hold“.
The mistake that many of them commit is the fact that Bitcoin isn’t yet as a valuable store while gold has a long history of 2,500 years as a solid currency.
So, many people are surprised when prices reach $20,000 and then drops to $3,300. It is fine when you purchased the property with less than $2,500 but what happens if you buy at $10,000? It would result in an extremely large financial loss.
However, if you follow the method and HODL in the long run it is likely that you will be able to see a profit. The Bitcoiners who are still hoarding their dollars from 2009 smile the whole up to their bank. The reason is that they won’t have the money to cash in at any point however, rather they would be using Bitcoin as a source of wealth in the long run.