Bitcoins are something our generation has been talking about a lot recently. They have been in the news, and various people have been in the news because of them. Hence, it is all so confusing that despite bitcoins being popular, we don’t really know what a bitcoin investment really is. How are people becoming millionaires by investing in bitcoins? To understand that, let’s start from the start.
WHAT IS BITCOIN?
Bitcoins are the true representation of the digital world we live in. They are part of a system that has been created to buy, sell and store money digitally. Whether you call them a currency, an asset or something like a stock, it is all the same based on how they function.
Any buyer can buy bitcoins through any of the apps that sell them, like Coin base. Once you have them in your wallet, they are like real money but, one that has no tangible evidence or Keine Handfesten Beweise, as the Germans say it. Most people prefer to hold onto them like an asset, which anyone is most welcome to do.
Bitcoins were primarily created to be a part of a new finance system which has a lot more transparency than the current system we know. It is also more decentralised, and unlike anything, we have seen before.
INVESTING IN BITCOINS
Why invest in bitcoins?
After all that we know about bitcoins, one must wonder that what exactly is it that makes them so valuable and worth so many dollars? The simple reason is that they are still something new, even though they were created a decade ago.
Along with that, the reason one should invest in bitcoins is that they are a better investment than anything else because of their monetary policy. The verification is open to all, which makes the platform very transparent, unlike many other platforms. You can send them to anyone across the world and see at all times how many bitcoins are in circulation.
How do you invest in bitcoins?
Bitcoins are like your stocks; you have to find an exchange where you can buy them. These exchange options are limited to countries which are the only limitation attached to them. Coinbase is known to be the biggest exchange for working in major countries. You can also use online tools to find exchange platforms that work in your country.
How do you mine bitcoins?
Many bitcoin buyers keep their coins as an asset which is a form of investment. Selling these coins would later earn them profits most probably. But there’s another method which many buyers follow, which is mining these bitcoins. The process that goes behind mining bitcoins is extremely complicated and involves solving mathematical problems while keeping a track of many other things.
In simple terms, what happens is that miners have to make guesses based on the problem in front of them, which means there would be a lot of guesses per miner. One main computer is keeping a track of all of these which is why this process becomes a little complicated for everyone. Hence, mining is limited to only a few buyers.
Should you mine bitcoins?
For new users in the industry of bitcoins, mining is not the best option. The operation has to be large enough for it to be profitable. Most miners who have earned great profits have been working with hundreds of computers at their disposal. To set up something like that takes a lot from you, which is why mining is not suggested as something any new buyer should do.