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What is Bitcoin? Should we invest in Bitcoin?

What is Bitcoin? What is Cryptocurrency? Are Cryptocurrency and Bitcoin real currencies? If so, what for? Should I invest in bitcoin? These are recently the most popular topics and questions which are being considered massively all over the World. When going to search on Google with this keyword “what is bitcoin”, there are 16,500,000 results appeared, it demonstrates that this topic has a huge amount of information to be discussed. So, What does Bitcoin or Cryptocurrency mean? Is it wise to invest in them? Let’s find out with me.

what-is-bitcoin

1, Bitcoin is a virtual money, isn’t it?

cryptocurrencymirror have constantly received questions like “is bitcoin a real currency?”, “what do you think about bitcoin the virtual money” etc. To explain to each of you about this complicated topic is impossible, so today, I decided to write this article to give you an objective view of this currency.

True to be told, Bitcoin is nothing to do with virtual money. It is a real currency which called “Cryptocurrency“. A vast of people who don’t really know about this coin or don’t have enough information have a sadly negative viewpoint of bitcoin, they call this is a virtual money. The word virtual describes something not real. Virtual money can only use in one limited specific group, such as money in a game. It normally could not exchange for real currencies like the dollar, but if exchange happens, the exchange rate will be very low, depending on the agreement between two sides. The way Bitcoin work is completely different from virtual money.

Bitcoin obviously could exchange for real money at a super high rate (1 bitcoin for $20,012 when I’m writing this article). It is wide-used all over the World. You can easily use bitcoin to buy everything you need, just like real money. Bitcoin is the highest value currency at present.

The following picture shows the Bitcoin exchange rate swing from 2012 to present.

what is bitcoin
Bitcoin from 2012 to present

Bitcoin exchange rate is updated real-time like every other currency such as dollar and euro. You can monitor Bitcoin exchange rate 24/7 in this [link], it is a necessary information to guide your investment.

Back in 2012 and 2013, people simply use bitcoin only in online shopping. When it comes to 2015, this coin had been being widely accepted by a respectable number of companies, businesses, shoppes as both online and offline payment methods.

By this far, I hope you would have a new viewpoint of Bitcoin and not consider it a “virtual currency” anymore. However, where does bitcoin come from, and why does this currency worth so much? Let keep reading the following part.

2, What is Bitcoin?

Bitcoin (BTC or XBT) came from the internet. It is a digital currency that was successfully encoded and released in 2009. Bitcoin is being transacted directly on the internet without any financial intermediation organization. The operation of bitcoin is entirely different from normal currencies. There is no need for anybody or organization to handle the transactions.

Bitcoin which is the first encoded and the most typical digital currency is now wide-used in e-commercials. The transaction cost of using bitcoin is massively lower than all other official currencies, therefore, businesses commonly prefer using this coin. By June 2016, the market capitalization of Bitcoin is approximately 12 billion dollars that’s an overwhelming number making Bitcoin the most worthy currency.

what is btc
What’s BTC?

If you are tending to study more on bitcoin, you shall read this article on Wikipedia – What is bitcoin. If not, you just simply need to understand that bitcoin is a digital money that has a real value and is free to exchange and transact without any controls.

How is Bitcoin created? Who invented it?

Bitcoin was invented by Satoshi Nakamoto that’s a person (or maybe an organization) who is unwilling to reveal self-identity, in 2009.

The born of Bitcoin is considered as a world-level revolution because of its smart solution of transactions with the management of no one. Let me give you an example.

You live in England and your relative lives in Vietnam, when you want to send him some money, you must go to the bank or use some online payment gateway with VISA. This costs significantly time and cost for the financial intermediary. In contrast, using bitcoin you could properly do the transaction through no one but internet, and 5 or 10 minutes later, your relative would receive it entirely. Of course, if your relative doesn’t like to keep bitcoin, he can easily exchange them for official currencies.

3, What is Bitcoin wallet?

Perhaps you are in the concern of how to send and receive bitcoin, and how to keep them when it is invisible? A coinbase is the answer! Coinbase is made to be a place to keep cryptocurrencies like bitcoin, and to transact them. Whenever a person uses bitcoin, he has to create a Bitcoin wallet at one coinbase. When you create a Bitcoin wallet, the coinbase will provide you with some public addresses for the others to send bitcoins into. Some trusted Coinbases that you could create Bitcoin wallet are Blockchain.info, coinbase.com

Most of Bitcoin wallets are well secured through many layers (if you want to access your wallet, you’ll need to confirm your email and mobile phone number) or offers a function to print out your wallet information to keep in secure places. And remember never to let someone see your wallet information in order to avoid being stolen.

4, Advantages of Bitcoin

As Top experts have evaluated, the born of Bitcoin marked a turning point in the methods of payment, bitcoin itself include a huge number of advantages and is extraordinary among other currencies.

– It makes transactions easier: There is a limitation of the maximum amount of money can transact a day, on the side of using traditional payment methods like through the bank or through the online payment. Bitcoin basically doesn’t have that limitation. You can transfer as much bitcoin as you want, from anywhere to everywhere in the World, in anytime without any control.

– You cannot make a fake Bitcoin: Another advantage of bitcoin is that you cannot make a fake bitcoin, due to its unique and its invisible form. Moreover, it’s free to exam whether one bitcoin is fake or real.

– Bitcoin is strongly secured: Every single transaction information is well noted on the internet, except personal information. This make bitcoin is super safe for users. Above all, count up to now, bitcoin hasn’t faced any hacked accidents. (But some coin Exchanges have been hacked, so notice to only exchange in trusted Exchanges)

– The transaction cost is grateful low: Thanks to no intermediary transaction are required, the transaction cost is 0. You only need to pay a tiny amount of money for excavators.

– Using bitcoin is protecting the environment: Bitcoin is not in need of paper and chemical to be made, so it is an environment-friendly currency. Excavators use much less electricity than current finance system.

– Bitcoin is wonderful for e-commercials: At present, many businesses, companies and shoppes are allowing using bitcoin for payment. Each of bitcoin transactions is irreversible, so there is no way to cheat.

5, Disadvantages of Bitcoin

– Amount of bitcoin users has not big enough: Actually, at present, mostly Bitcoin is using in developed countries like USA or China. In comparison, in developing countries, it is hard to change civilians’ habit of using traditional medium of exchanges such as paper money or gold. Most of these civilians haven’t deeply understood the Cryptocurrency. They might think this kind of money is not so trustworthy, so they are afraid of using it.

– It’s not easy to use Bitcoin: One who does not have a background in technology and hasn’t really studied about Bitcoin is not able using it. As said above, you cannot use bitcoin unless you have a bitcoin wallet and exchange it into official currencies. I think these people who haven’t fully understand Bitcoin should attend a course or ask someone that is experienced and reliable.

– Bitcoin exchange rate swings too rapid: Bitcoin exchange rate swings every second just as the same as dollar and euro. But Bitcoin is a way much more intense and rapid. For example, years ago exchange 1 bitcoin used to cost few dollars, but now it costs more than $20,000.

– Hackers and money laundering criminals: As a matter of fact that no one can control the Bitcoin transactions, significant criminals are making use of it to launder the money. Furthermore, Bitcoin cannot be hacked, but Bitcoin Exchanges could be hacked.

someone that is experienced and reliable.

– Bitcoin exchange rate swings too rapid: Bitcoin exchange rate swings every second just as the same as dollar and euro. But Bitcoin is a way much more intense and rapid. For example, years ago exchange 1 bitcoin used to cost few dollars, but now it costs more than $20,000.

– Hackers and money laundering criminals: As a matter of fact that no one can control the Bitcoin transactions, significant criminals are making use of it to launder the money. Furthermore, Bitcoin cannot be hacked, but Bitcoin Exchanges could be hacked.

6, The truth of Bitcoin fraud stories

Recently, on the internet, a considerable number of Bitcoin scam stories have been published. These stories maybe have made a lot of people concerned. What is the truth behind these stories?

Firstly, I have to repeat that bitcoin is the real currency. Despite being invisible and be controlled by no one, Bitcoin has its true value. And, Bitcoin is not a fraud itself. The scammers are the bad guys who would steal your money or blackmail your child if there was no bitcoin.

Countless articles which are origin unknow said that bitcoin is just like Ponzi scheme that’s a fraudulent investment operation. However, due to World Bank’s report in 2014, Bitcoin is far different from Ponzi scheme.

In a nutshell, Bitcoin has no fault in these scams, thought many bad people have used it as a tool to scam. And the main reason for being scammed is lack of knowledge.

7, How to earn some bitcoins?

Cryptocurrencymirror.com has always believed that one who read this article or who have already researched on bitcoin, obviously want to own bitcoin because of its exchange rate at $20,000 for 1 bitcoin. So, how to find bitcoins? Cryptocurrencymirror.com willing to gives you some bits of advice.

– Bitcoin mining (Build your own excavator system or Join in a mining group)

In Bitcoin transactions, there is a need for encoding the information. Miners use special software making use of their own hardware (Graphic Card) to solve that math problem and are issued a certain number of Bitcoins in exchange. Years ago, the number of miners (both group and individual) had been constantly rising massively. But after a period of time, when the electricity cost was unbearable, many of isolated miners chose to give up.

Therefore, if building a whole mining system is a bit too much, you could consider joining a mining group.

– Invest some money to buy bitcoins

Back to the first question, “Should we invest in Bitcoin?” and “How to invest in bitcoin?“. Well, I can only say that it depends on you. What do you think about investing in gold, or investing in stock shares? Bitcoin is an investment channel as well. There is not the only truth. If you find it potential, go ahead and buy Bitcoin from someone holding Bitcoin that you know, or have a look on these sides [link]. I would highly recommend Remitano.com because of its reasonable cost and safety.

– Surfing

You do not need to spend a huge amount of money holding Bitcoin for a long time in anxiety. You could always be a surfing investor thanks to the wide-ranged exchange rate. The unbelievable number of people become millionaires by surfing Bitcoins. But beware that, only the investor that deeply understand the market could make profits this way.

– Bitcoin funding team

In this form of investment, you shall choose a Bitcoin funding team, send them your money and let them make benefit by surf-investing in Bitcoins. In exchange, they will pay you 20-40 percent of your investment per month. It’s the easiest way to earn some money from Bitcoin, but also is the riskiest way. You should know the fact that the majority of funding teams are scams, some exactly operate as a Ponzi scheme. In my opinion, you should stay away from this investment system.

8, Will Bitcoin last forever?

It cannot be denied that negative information is more likely to be shared than positive information. For instance, when it comes to Bitcoin, just a little people shared about how much convenient and low-cost it is. Conversely, keywords like “Bitcoin scam”, “Bitcoin bubble” are widely shared, mostly by who don’t even know what bitcoin is.

When googling about bitcoin, all these inaccurate information appears. This makes an extremely misunderstanding of Bitcoin, which now is marked as “Scam”.

Will Bitcoin last forever
Will Bitcoin last forever?

I cannot understand why someone who even doesn’t get any concept of ‘what bitcoin is’ could say something not good about it loudly. They said that bitcoin is nothing than a fraud, a Ponzi scheme, a currency for criminals etc that are so one-sided for me.

However, recently, some trust-worthy publishers finally have said something positive about Bitcoin, which make a respectable amount of people changing their mind. Bitcoin has been going through many challenges and nowadays it still shows no sign of stop. The fact is to kill The Bitcoin, you have to kill the Internet which is impossible.

Conclusion

Thank you for your reading. Have you been satisfied with cryptocurrencymirror.com’s answer on “What is Bitcoin” and “Should we invest in Bitcoin“? Hopefully, you’ve found out some useful information in this article and have a brand new viewpoint of Bitcoin. If you have any questions, feel free to write them down in the comment below.

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