Bitcon and Cryptocurrencey
Bitcoin has been in the news a lot nowadays and its current price is a source of interest to a lot of people around the world. A few year ago, many people labelled Bitcoin as a SCAM but now it seen, along with other cryptocurrencies as the future of money.
As a novice of these new virtual money trend, I’m of course very cautious and reluctant to part with my hard-earned money.
However, I’m not really against it nor did I completely rule out the possibility to invest in cryptocurrency but I wants to be a “Knowledgable Investor”. I need to learn all about Bitcoin (BTC) and cryptocurrency; on how they work, why they exist and what kind of technology is behind it, in order to make an educated decision.
Not many people outside the crypto-communities knew what they were and like me, mostly thought it was just another fad that was bound to fail in a few years or so. Looking back in year 2008 when it was first introduced, the value of one BTC was just a few cents so obviously it wasn’t worth a lot. For this reason, it was ignored by the masses. Those who invested sums of money on the new digital currency either believe in the system proposed by its founder (Satoshi Nakamoto) or they simply wanted to see how it works.
But it only took BTC 5 years to breach the $1,000 mark in in the late 2013, and just a few years later, BTC prices are at an all-time high – way past the $10,000 mark for a single bitcoin!
- Cryptocurrencies are Digital Currencies which are electronic in nature. They do not have a physical form like paper money or coins which you probably have in your pocket right now
- You can’t hold them physically but you can buy things with them
- Depending on the merchant you’re doing business with, they may accept more than one cryptocurrencies as payment
Checkitout at CoinMarketCap → there are more than 1,000 active cryptocurrencies right now.
- If you can’t afford Bitcoin prices right now, try other alternative currencies such as Ethereum, Litecoin, Ripple, Dash, Zcash and many more. However, before investing, please do some research on the cryptocurrency you wantto invest in as not all cryptocurrencies are equal. Some are more stable than others and would therefore, make for better investment. For your info, currently I’m cloud mining with CRYPTOMININGFARM. You can click the banner above if you’re interested. Just check it out and try free mining for a week.
- In Oct 31st 2007 – satoshi Nakamoto revealed his white paper “Bitcoin: A Peer-To-Peer Cash system) which outlined a payment system that addressed the double spending problem of digital currenies
- In January 2009 – “GenesisBlock” was mined (the 1st Bitcoin Block)
- In November 2010 Bitcoin marketcap exceeded $1,000,000! The price at this point is $0.50/BTC
- I June 2011, Bitcoin experienced the s0-called “Great Bubble of 2011” after reaching an all-time high 0f $31.91/BTC. Four days later, the exchange rate plummeted to just $10/BTC.
At this point, many investors panicked at losing so much money and sold at loss. It took almost 2 years for the exchange rateto recover and surpass the previous all-time high. Those who kept their bitcoins made the right decision as the price has continued to climb and surpass everyone expectations!
Next Posting : Why Do Cryptocurrencies Exist