So you’ve decided to take the plunge into the world of Cryptocurrency. Get ready for a wild roller coaster of a ride! But don’t worry, we will guide you for a part of the way. Let’s take a look Let’s take a look at the things you need to know first, starting with the concept behind Bitcoin.
A Bitcoin is a virtual piece of data. Yes, that’s correct, it’s all virtual. Well, no it isn’t really. But we are getting ahead of ourselves. A Bitcoin is a valuable virtual piece of data. It comes into existence by executing complex computational calculations. It actually requires very little input from you, the user. It’s not easy, or free , to get your hands on some Bitcoins. But it’s an experience you can’t miss out on!
So how do these computational calculations happen? There are a few things required. You need powerful hardware, far more powerful than your average computer. You also need an internet connection and electricity. Suffice it to say that Bitcoins are created by letting computer hardware do what it does best : work hard.
The most important thing you need to know is that Bitcoins are finite. This means a certain number of them will exist, 21 million roughly, and after that no more Bitcoins will be generated. This is part of what makes them so valuable , and what will most likely increase their value as we get closer to the 21st million Bitcoin. Unlike fiat currencies, like US Dollar, Pound Sterling, Euro, Yuan and others, which are pretty much infinite in numbers. If the economy bottoms out, there is always the option to print more currency bills without too many repercussions.
This is oversimplifying things , but you get the gist of the idea. Where fiat currencies are regulated by governments and authorities, Bitcoin is not. There is no centralization, nor any oversight. The value is being determined by the users . Granted, there are a lot of people who can sell their Bitcoins now to lower the price, but enough people are willing to take their place.
Even if you weren’t an early adopter in 2009, when Bitcoin was first launched, you can still be part of the community. Whether you want to generate them on your own, or just buy them, the time is now! If you wait for another 4 years, the party boat will have sailed away and you will be left behind.
We are all suffering from the economical crisis. And, in fairness, there is no real improvement in sight for the near future. If you can spare the money, Bitcoin is worth an investment. But you also have to be prepared to lose the invested money if things go wrong.
Bitcoin is a better alternative than a regular savings account in my book. However, do not jump in blindly after reading this guide. There is a lot more to it but you can than just buying Bitcoins and waiting until the price goes up.