Odds are at some point or other over the past ten years or so, you have heard the word Bitcoin. Odds also are that you feel you have a basic idea of what it is and perhaps not a full-scale knowledge. Bitcoin is a cryptocurrency. That is where the knowledge of the average person often ends. Bitcoin was created in 2009 and uses peer-to-peer technology to make instant payments from one person to another.
Bitcoin is a decentralized currency, which means that it does not belong to one government and does not belong to one jurisdiction, making it truly revolutionary and wide-reaching as anyone from any location can use it after their own currency has been converted to bitcoins. It does not belong to any one specific country, which means there are no high fees or regulations tied to transactions.
Bitcoin transactions are also direct from one person to another with no middlemen. This means no fees from credit companies, no banks taking a portion of the sale, and all the money transferred directly from the buyer to the seller. This means that if you are selling something and using bitcoin for payment, nobody can censor your transaction.
Switching gears, we have all heard about the stock market and how you can invest your money and make money in the process. For most, the stock market is a bit risky, and it is also hard to understand. You can trade and invest in bitcoin, even if you have little or no investing prowess or knowledge for minimal risk.
Bitcoin, like the stock market, goes up and down in value every day. For the most part, the value does stay fairly consistent. The current price of a single bitcoin as of August 2021 is around $44,000 per one coin. This price is so high because there are only a finite amount of bitcoins that can be mined. This brings us to bitcoin mining.
More and more countries are taking the time now to take bitcoin more seriously and decide if they want to accept it as a legal currency. Countries like El Salvador are now considering accepting Bitcoin as actual legal tender in transactions that are limited to the internet and the virtual space. Currently, the United States, Canada, Australia and countries in the European Union all tolerate Bitcoin as a currency used for purchases.
The future looks bright for this cryptocurrency, and in the future, it will likely be legal in more and more countries across the globe as it grows in popularity and stability. Countries like China, Russia and Vietnam are all staunchly against bitcoin and refuse to accept it as currency. In Russia, it is not regulated at all and use of it for payment for goods and services is illegal. In China, bitcoin miners are closely watched and dealing in bitcoin for any transactions is illegal and fully punishable. Though not all countries accept it yet, this may change as time goes on in the future.
Bitcoin for the People
So, why is bitcoin so appealing to the average person and the average investor? For starters, it is not centralized. This means that no one country can get ahold of the system and charge outrageous fees or limit what the cryptocurrency can be spent on or used for. This also means that you will not get penalized for getting a large amount of bitcoin and holding on to it. You can hold it and safely grow in value over time without any fear of penalties or increases in fees when you spend it.
Since it is not centralized with any government, it is also easy to use no matter where your transactions are. Say, for instance, you are buying products out of Japan, in many transactions using typical currency and typical means of purchase, you would have to pay import fees, large fees for the transport of goods, and even more fees depending on what you were buying and the conversion of one currency to another. This means that you would be paying more, and the seller would be receiving less. There is no way that any one government can attach fees to it or drive up the price with bitcoin.
Yet another reason that it is appealing to everyone is that anyone can invest. There is no regulation about who can invest in bitcoin or take part in using or trading it. This means that it is truly part of the free market, which is appealing to many. Bitcoin affords for a quick investment and quick turnaround for profit if you are looking to make a fast return on what you are investing. You can make a short-term profit with this type of investment or hold on to it and make a long-term investment that grows over time.
Many big-name investors have tried to argue that since there is only a finite amount of bitcoin out there, it is not a smart investment, which is not true. Bitcoin is a wonderful investment because it is so rare, it is so easy to use, and it is something that does go over a huge range of different transactions and that anyone can use.
Bitcoin is the currency of the future, and for those dealing with problems when it comes to deciding if they want to get into bitcoin or not, it may be something worth taking a look at. Our economy is moving toward a paperless system that means we may not be using paper money for our everyday transactions for much longer.
Think about it, how often do you pay with paper money instead of your credit or debit card? While most institutions like grocery stores are not accepting cryptocurrency, more and more online retailers are, and more and more online sales can start using cryptocurrency like bitcoin for sales. Over the past few years, bitcoin has gained traction and has stabilized as a form of currency that more and more people are willing to learn about and willing to use in their transactions potentially.
Though it is still years from being our only currency, it is gaining in popularity, and more and more people are learning about it and venturing out to possibly use it as a form of online currency. So, what is the takeaway?
Bitcoin is not centralized to any one country or government
Bitcoin is stabilized and can be used on a ton of different transactions
Bitcoin cuts out the middle man
Bitcoin transactions cannot be censored
Bitcoin is a currency that could very well be the future of currency.
So, if you are thinking about investing in bitcoin, buying bitcoin or trading bitcoin, it may be a great option for you. There are many different options out there, and there are many different opportunities out there. You have to take the time to do some research and decide whether or not bitcoin might work for you.