What are Bitcoins?
Some of my friends are pretty clued up on Bitcoin, and even mine it, while other people – like myself – don’t realllllly understand what’s going on. I’ve noticed a few travel booking sites I use have started to accept Bitcoin, which kinda makes me feel like it’s here to stay. So I’ve been doing some research into it and I think it could really change the way we think about money. No longer is the only real mainstream option a unit of currency that is controlled by governments and can be reprinted on demand. Bitcoin offers an alternative that is quite fascinating…
So, what is Bitcoin?
In essence, Bitcoin is a peer-to-peer payment system that allows you to transfer money from your Bitcoin wallet to someone else’s. Your wallet is a bit of data that can be stored on your computer. It can be a bit hard to wrap your head around, as if you lose your Bitcoin wallet you lose access to your money, just as if it were a real wallet you’d lost. You can store electronic copies of your wallet elsewhere and I’d suggest storing it on a USB or three, a harddrive and even on a CD. Only leave these with people you trust as it’s basically like leaving a wallet filled with cash with someone.
What’s Crypto Currency?
Bitcoin is a form of Crypto currency, but it’s not the only one. It basically just means that it uses cryptography to control the creation and transfer of Bitcoin. It’s just a new form of currency and it’s value has shot up considerably since conception in 2009.
How do I mine Bitcoins?
I’ve actually looked into it and it seems we’re a little to late to the game for this to be worth it. If you want a detailed explanation on how to mine Bitcoins check out this guide here.
Is it worth investing in?
I believe in the long run, yes, Bitcoins seem to be a solid investment – although don’t take my word on that as I’m just a chick who’s fascinated in this kind of stuff and I have no financial expertise. Some people actually operate as “day traders” of Bitcoins and that too can be a very profitable way of working with this currency. The fact that Bitcoins are limited in numbers and can’t be re-printed on a whim makes them a more rigid currency than other currencies. As with anything, set some time aside to do your research. Bitcoin seems to have already reached its peak and many of those who invested early on, have made considerable sums of money. Just because you’re a little late to the game doesn’t mean there’s nothing to be made, it just means that it’s slightly harder and might take a lot longer.
Have you invested in Bitcoin? Let me know in the comments below!