Bitcoin is Back: Why the Timing Couldn’t Be Better and How You Can Get in on the Act

by James on June 8, 2017 · 0 comments

bitcoin-2008262_640Virtual currency – a type of money you will never hold in your hand. Several years ago, this concept would have been laughable, however, cryptocurrencies are starting to dominate many conversations, especially Bitcoin.

In January of this year, Bitcoin’s value reached $1,000, which indicates it’s not just here to stay, but could also be the beginning of global usage of cryptocurrency.

To help you get to grips with this, we’ve put together a simple guide about this ever-growing form of currency, and how you can make sure you’re not left behind.

What is Bitcoin?

Bitcoin is a digital currency, which has been developed with encryption techniques that helps verify the transfer of money while also regulating the generation of it. It also removes any involvement from governments, financial institutions, and banks.

It was first created by Satoshi Nakamoto (an alias) in 2009 and allows people to make anonymous purchases as no real names or banks are used when making a payment with Bitcoin.

How Can I Get Bitcoin?

There are a number of different ways you can get your hands on Bitcoin (virtually, that is). However, to start with, you’ll need somewhere safe to store these Bitcoins – a Bitcoin wallet. Blockchain is the technology behind Bitcoin and is a decentralized authority that makes the verification of transactions much quicker than a traditional network, e.g. a bank.

Essentially, your Bitcoin wallet will be a bank account for your cryptocurrency, which means you’ll receive Bitcoins into this wallet, you’ll keep them there until you need them and you’ll send other people Bitcoins from this account. You might also want to purchase different items by using the Bitcoins you have in your Bitcoin wallet.

Where your Bitcoin wallet lives is up to you. You can choose to leave it on the Web, on your smartphone, on your computer, in an actual bank or on a piece of external hardware. People and organizations can choose a Bitcoin wallet that’s best for them and is going to provide the most beneficial option.

Once you’ve got your Bitcoin wallet in place, there are a number of different ways you can buy Bitcoins. You can buy Bitcoin with your credit card, you can buy them through your bank account through a Bitcoin exchange or you can use your PayPal account.

What’s the Point of Bitcoin?

When it comes to exchanging or transferring money, Bitcoin is a much more efficient, safe and fast way of doing this. Many companies are now using Bitcoin as a payroll service, while a number of other organizations, such as Dell, Microsoft, Starbucks, and Amazon are accepting Bitcoin as a payment method.

What are the Benefits of Bitcoin?

You’ll Save Money: Because transaction fees are non-existent or very cheap, it’s a great way to save money. With 0-1% normally being charged for a transaction, it’s ridiculously cheap compared to other transaction fees.

You’ll Save Time: If you’re a business, you’ll save a lot of time by employing the use of Bitcoin. That’s because, as an organization, you’ll often have to wait a long time for a payment to be transferred into your bank account. However, because the blockchain technology used by Bitcoin takes care of all your transactions, there’s no time-consuming middleman involved, which means Bitcoin payments are much quicker than traditional forms, such as credit cards.

You’ll Remove any Payment Disputes: Another great advantage for businesses is there will never be any disputes over payments because once a Bitcoin payment has been made, it cannot be contested.

You Can Use It All Over the World: Because Bitcoin isn’t associated with any particular government, country or company, you’ll avoid a lot of the hassle involved with international payments. Bitcoin isn’t bothered about borders, all it’s bothered about is whether a company, vendor, supplier or customer accepts Bitcoin. You can even search around for companies who do accept Bitcoin, which will save you even more time.  

You Can Make Great Investments: Bitcoin is also becoming a favorite for investors. Just like you can invest in another currency, such as GBP or the Euro, you can also invest in Bitcoin. This is a lot like investing in other forms of currency or buying silver/gold because you will still own it, even though it’s only a virtual thing. At the start of last year, Bitcoin was valued at around $300, now it’s worth over $1,000, which demonstrates what a wise investment it was for people last year!

You may still be skeptical about Bitcoin, and you’re not alone. But with its value continuing to rise, it’s an opportunity that’s worth keeping your eye on!

Hayden Kelly works at a small bank as a financial planning officer. Always on the hunt for the latest money news and trends, he loves to post what he finds on a variety of personal finance blogs.

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