Blockchain: The Brains Behind Bitcoin
Blockchain is the underlying technology on which bitcoin and other digital currencies operate. Simply put, a blockchain is a database or a digital accounting ledger. As a decentralized, peer-to-peer network, blockchain records information about every bitcoin transaction that takes place anywhere in the world and distributes it across the entire network of computer systems.
These attributes allow users to send money anywhere in the world without an intermediary to convert the currency, or having to pay conversion fees or transaction costs.
Once a transaction is recorded on blockchain, its decentralized nature and cryptographic algorithm make it virtually impossible to tamper with it.
E Bitcoin Is Divisible
One of the great benefits of Bitcoin is that its divisible, like old fiat money.
Fiat money like the U.S. Dollar or the Euro can be divided into only 2 decimal points: 1.00
Bitcoin can be divided into 8 decimal points: 0.00000001 BTC.
The smallest unit of Bitcoin, 0.00000001 BTC, is often called a Satoshi, in honor of the inventor, some additional information from our Bitcoin beginners guide for you.
Is Cryptocurrency A Good Investment
While many cryptocurrencies have increased in value, they can be volatile and aren’t backed by a government. For some, the lack of government involvement is an advantage. Whether it’s a good investment for you depends on your age, risk tolerance, overall financial strategy, and whether you can afford to lose what you put into cryptocurrency.
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Why Invest In Binance Coin
There are two factors that make Binance Coin worth considering. The first is its market capitalization. At nearly $47 billion and growing, its one of the bigger cryptos available. Thats also an indication its gaining acceptance in the marketplace.
The other factor is price performance. The 25-fold increase in price in just one year confirms this crypto has wide investor interest, at least as cryptocurrencies go.
C Is Bitcoin A New Asset Class Like Stocks
The majority of people who buy stocks are speculating. Theyre guessing/hoping that prices go up.
Pension funds buy steady stocks hoping they will slowly go up, so people have something to retire on.
Risky traders buy penny stocks or cheap but risky stocks, hoping they skyrocket in value.
Since Bitcoins price varies regularly, most of the people who buy Bitcoin are also speculating, hoping prices will rise over the months or years.
It has the properties of different traditional assets.
And only time will truly tell what Bitcoin ends up being.
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If You Want Exposure To Digital Assets Your Options Are Growing Here’s A List Of Cryptocurrency Stocks To Dip Your Toes Into This Expanding Technology
Bitcoin recently suffered one of its biggest monthly drops on record in May. The price of the digital asset crashed all the way from a mid-April high over $64,000, to $30,000 by late May dragging many cryptocurrencies and cryptocurrency stocks down with it. That was followed by a quick rebound to $40,000, and since then, prices have been stuck in the $30,000-$40,000 range.
The volatility in Bitcoin and by proxy, cryptocurrency stocks this year has rekindled excitement in retail investors in a way it hasn’t since the digital coin last peaked in 2017.
Professional investors, billionaires and even publicly traded companies have maintained a keen interest in cryptos, too. This involvement in both Bitcoin, other cryptocurrencies and blockchain the secure authentication technology behind digital currencies are already showing up as a new source of revenue for many companies in mid-2021.
It’s partly thanks to the pandemic. COVID-19 helped accelerate a number of digital reforms in companies large and small. “We’ve seen two years’ worth of digital transformation in two months,” Microsoft CEO Satya Nadella stated last April when the pandemic was running rampant.
- Quarterly earnings growth rate : 1,206%
- Profit margin: 22.8%
- Return on equity trailing 12 months : 29.4%
“Crypto functionality is now part of Top 5 finance apps,” say Piper Sandler analysts Christopher Donat and Crispin Love, who rate PYPL at Buy.
B Faster Cheaper Remittance
If you send money to friends or family in another country, those costs can stack up very high very quickly.
Banks often charge $50 or more to send your money abroad, and it will take 2-5 days.
Bitcoin transfer fees are $0.50 on average and take 10 minutes to a few hours at most.
Thats a big difference that keeps more of your hard-earned money in your own pocket, not a banks vault.
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What Is The Next Bitcoin
Wow. Thats ballsy to even ask what that is. Is Bitcoin not good enough for you?!
So, you think youre ready for the next Bitcoin eh? Well, let me be frank, the next Bitcoin better be so earth shatteringly awesome that it breaks the universes time continuum.
What I mean is it better be truly innovative beyond functionality and protocols where Bitcoin has already filled the gap. But hey, this is one of the most common questions asked by cryptocurrency newcomers So here we are.
Lets start by reviewing what makes Bitcoin so freakin awesome first.
What is Bitcoin, man?
Bitcoin is a digital money ecosystem with units of currency that are used to store and transmit value among participants in this glorious distributed and decentralized computer network. The Bitcoin protocol stack is available as open source software and can run on many devices including mobile phones, tablets, desktops and even a Raspberry Pi.
Users communicate through the Bitcoin protocol via the web or other mechanisms . Its a peer to peer system with no central server or point of control.
Bitcoin is created through a process called mining. This involves computers competing to find solutions to a mathematical problem which produces 12.5 BTC per block found. Miners also process and validate bitcoin transactions to ensure no double spending or other fraudulent transactions.
So lets review, Bitcoin is composed of:
Its the Internet of money! Its insanely innovative is what it is.
Stablecoins Around The World
Numerous countries are considering developing or already working on their own digital currencies and stable coins. The US, Russia and France and other nations have all announced plans to enter the digital currency market. China is probably the farthest along out of the major economies, having launched a central bank digital currency .
As these projects progress, they could add legitimacy to the market and challenge some fiat currencies. Bitcoins price may go up in the short term as these announcements come out, but whether its value will hold in the long run as the world transitions towards digital currency has yet to be seen.
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Bitcoin As A Commodity
One possible idea for where Bitcoin could be heading is for it to become a tradeable commodity, like oil, or metal. In America, the Commodities Futures Trading Commission designated Bitcoin as a commodity in 2015.
Read more about tax and regulation on Is Bitcoin legal?
Banks like JP Morgan are now seeing the currency as an asset class, too. But that doesnt mean its a done deal for Bitcoin. Currencies are traded as commodities all over the world thanks to their relationship with the prices of certain goods.
Cryptocurrency Investing Predictions For 2022
Bitcoin is going higher. But, don’t be shocked if it goes a bit lower in 2022. If it does, but it.
Well, wasnt 2021 sort of a moon launch? I think so. It hit all-time highs despite all the legends saying its a worthless seashell for tech dorks. Wrong! Hey, its not $68,000, but itll get there again.
Bitcoin will reach at least $200,000 by 2025, says Paycer UG founder & CTO Nils Gregersen in Hamburg, Germany. But I am pretty sure we will see it fall to around $20,000 before hand.
Okay, no panicking. Ill buy it.
What about the rest of the cryptocurrency space? Theres more to this market today than Bitcoin. Cryptocurrency investing is the new stock market. Everybody knows that.
This year was a very interesting one for crypto. We saw trends coming and going very fast with coins hyped up by influencers like Elon Musk who gave Dogecoin a lift for a short time before it returned to being a dud coin.
There is a lot of pump in the market at the moment, says Gregersen. I think in 2022 we are going to see a little cooldown in the market. Only the stronger projects will survive. For the memecoins and other shady projects, I think the air gets a little thinner for them, he says, adding that regulations will have an impact on DeFi cryptocurrencies, within varying degrees of positives and negatives.
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How To Identify The Next Big Cryptocurrency
The best way to understand cryptocurrency is to recognize that its much more of a technology than it is a currency. Think about how much the internet has changed since its advent in the 1990s. The first rendition of the internet with static webpages was Web 1.0 technology. When it became more interactive with users adding content, particularly through social media, that was Web 2.0 technology. Blockchain and cryptocurrency are Web 3.0 technology.
Use this analogy: consider Bitcoin the same way you would your very first PC. Innovative, but now a little slow and clunky compared to your new laptop or mobile phone. Bitcoin is your PC, Ethereum is your laptop, and altcoins are comparable to mobile phones and tablets. Youre probably not going to get rid of your desktop computer or your laptop, even though you have a cellphone now, just like you shouldnt sell your Bitcoin or Ether. Its hard to know which new smartphone or tablet to get because there are new ones every year and the technology is changing so fast. You choose one that fits your needs and maybe even try owning both a mobile phone and a tablet.
There is no next Bitcoin because Bitcoin was the first cryptocurrency and it will always be the first cryptocurrency. However, there are new and different cryptocurrencies with new and different features, because they are based on brand new technology. This new technology will have applications and uses we cant even dream of yet!
A Bitcoin Helps Illegal Activity Prosper
This charge against Bitcoin is valid.
A Forbes article reports that as much as $70 million worth of illegal activity is funneled through Bitcoin every year.
However, the same article points out that all that activity can be traced, and in fact, is being tracked by law enforcement.
Unlike cash, every transaction in Bitcoin is permanently recorded and can be linked with other Bitcoin activity.
That means that as soon as law enforcement links a Bitcoin wallet used for illegal activity to someone in real life — then the law has records to prove the illegal activity.
Still, $70 million is a drop in the bucket compared to the $100 billion in cash used for illegal drugs annually.
And thats only on drugs.
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What Is Bitcoin Simply Explained
One of my fellow crypto maniaks said this:
When you decide to learn about Bitcoin, you are making a choice to expose yourself to a different way of thinking.
Thats true. Bitcoin is different from anything else that has been created in the past.
Bitcoin is a digital currency, or cryptocurrency, which is used by millions of people around the world and this is my Bitcoin guide for you.
Its built on cryptography, and its main feature is its decentralization.
For the first time, you can store value and transfer value without any 3rd party acting as an intermediary.
3rd parties like the central bank, financial institutions, etc.
You only rely on technology and math. And you have complete autonomy over your money.
This comes with many benefits. To name a few:
- You arent reliant on banks anymore to store/transfer value.
- You can do anything you want with your money, nobody will have a say about it.
- You can send value anywhere with almost no fee, instantly.
- Your government wont print it at any time without notice, deflating its value.
There are drawbacks as well:
- Nobodys here to protect you if you send BTC to the wrong person.
- Bitcoins value is mostly based on supply and demand, which makes it more volatile than conventional fiat money.
To sum it up, Bitcoin has all the properties needed to disrupt the economy.
But will it?
Decide Where To Buy Bitcoin
There are a few different ways to buy bitcoin and other cryptocurrencies, including exchanges and traditional brokers.
You can purchase bitcoin from several cryptocurrency exchanges. Many offer dozens of cryptocurrency choices, while others simply have bitcoin and a handful of alternatives. They carry a variety of different fees and consumer protections, so do your diligence before choosing.
The choices among traditional brokers that give customers a way to buy and sell bitcoin are few right now Robinhood was the first mainstream investment broker to offer bitcoin . Like its stock-trading platform, Robinhood charges no fees for bitcoin trades.
Of the online brokerages and cryptocurrency exchanges that NerdWallet reviews, the following currently offer bitcoin.
Other ways to buy or invest in bitcoin
What to know before you buy
Have information you may need handy. Setting up a cryptocurrency account takes minutes, but you’ll need to provide some information, including your Social Security number and the number to your bank account, debit card or credit card to fund your bitcoin account. Some providers also may require you to have a picture ID. Record and safeguard any new passwords for your crypto account or digital wallet .
» Learn more: Is Bitcoin safe?
» Dive deeper: What is blockchain, and how does it work?
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How To Buy Bitcoin In 4 Steps
Think about how to store your cryptocurrency. Are you going to keep your bitcoin in a hot wallet or a cold wallet?
Make your purchase. Figure out how much you want to invest in bitcoin.
Manage your investment. Determine your long-term plan for this asset.
varies by type of transaction other fees may apply
depending on payment method and platform
in bitcoin for getting started on Coinbase
when you make your first trade of $10 or more
for new users after trading $100 or more within 30 days
What Are Cryptocurrencies
Before we take a closer look at some of these alternatives to Bitcoin, lets step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money that takes the form of tokens or coins. While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.
The crypto in cryptocurrencies refers to complicated cryptography that allows for the creation and processing of digital currencies and their transactions across decentralized systems. Alongside this important crypto feature of these currencies is a common commitment to decentralization cryptocurrencies are typically developed as code by teams who build in mechanisms for issuance and other controls.
Cryptocurrencies are almost always designed to be free from government manipulation and controlalthough, as they have grown more popular, this foundational aspect of the industry has come under fire. The cryptocurrencies modeled after Bitcoin are collectively called altcoins, and in some cases shitcoins, and have often tried to present themselves as modified or improved versions of Bitcoin. While some of these currencies may have some impressive features that Bitcoin does not, matching the level of security that Bitcoins networks achieve largely has yet to be seen by an altcoin.
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Why Invest In Ripple
Ripple has a partnership with American Express which made many believe it would be a solid investment as it was backed by a solid company. But this is also where Ripple is likely to meet its downfall.
Theres some discussion that Ripple will eventually fall to more large banks and corporations which is a good security measure but doesnt offer any real difference from our current financial system.
Ripple is a low-cost investment compared to Bitcoin or Ether due to its current price but that has skyrocketed and then plummeted in the past. That being said, it is still one of the top ten cryptocurrencies. But for investment purposes, Ripple should be thought of as a cryptocurrency equivalent to a penny stock which is exactly where its trading.
Why Is Bitcoin Valuable
Bitcoin’s price has risen exponentially in just over a decade, from less than $1 in 2011 to more than $68,000 as of November 2021. Its value is derived from several sources, including its relative scarcity, market demand, and marginal cost of production. Thus, even though it is intangible, Bitcoin commands a high valuation, with a total market cap of $1.11 trillion as of November 2021.
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So Is There Anything Truly Valuable About Bitcoin
Yes, the technology behind it.
Bitcoin is built on the blockchain, a public ledger containing all the transaction data from anyone who uses bitcoin. Transactions are added to “blocks” or the links of code that make up the chain, and each transaction must be recorded on a block.
Even bitcoin critics like Dimon have said they support the use of blockchain technology for tracking payments.
The History Of Bitcoin
Rome wasnt built in a day — and neither was Bitcoin.
Heres a quick history lesson about the king of cryptocurrency.
- 2005 – Before Bitcoin…Bitgold was proposed.
- 2008 – Bitcoins Whitepaper is Published
- 2009 – Bitcoin is Launched
- 2013 – The First Bitcoin Bubble. Bitcoins price reached $1,213
- 2014 – Mt. Gox suddenly got shut down and China banned Bitcoin
- 2015 – Ethereum is created and competes with Bitcoin.
- 2017 – Bitcoins Biggest Bubble: Bitcoins price reached $19,787.
- 2018 – Bitcoins Low Point. Bitcoins price reached $3,300.
- 2020 – CoronaVirus vs. Bitcoin. Bitcoins price lost ~ 60% for a few hours.
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