Becoming Rich from Bitcoin

Bitcoin has been a huge topic, people are investing in it and seeing a great return on their money. It definitely creates curiosity to others if its a right thing to invest or not. Can you imagine would we have if we had invested big when it was just starting?

What is Bitcoin?

Bitcoin is a digital coinage and monetary exchange used online. It’s basically an online version of cash. We can use it to buy products online in shops, although not many shops accept Bitcoin yet and some countries have banned it.

Right now, 1 Bitcoin equals 559,284.01 New Taiwan dollar

How Do We Use It?

So, the easiest way to explain it is that we buy it using our “real” money.

Bitcoin is a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoin so your digital wallet, and you can send it to other people.

Every single transaction is recorded in a public list called the blockchain.

Why Bitcoin is A Good Investment

I think Bitcoin is a good way for using your money as an investment for the future.

First of all, let me show the people that become rich from Bitcoin.

1.Roger Ver — $520 million

He was one of the earliest advocates of bitcoin and made his fortune due to heavy investment in bitcoin-related start-ups.

2. Charlie Shrem — $450 million

Shrem purchased large quantities of bitcoin before it exploded in price. This and other investments saw him earn a cool $450 million.

3. Dave Carlson — $350 million

Formally an engineer with Microsoft, Carlson saw the huge potential of bitcoin and founded MegaBigPower to mine coins.

4. Jered Kenna — estimated $300 million

His bitcoin millions were made when he purchased his first batch for only 20 cents per coin. He went on to pioneer dark bitcoin mining pools, where individuals could invest anonymously in the digital currency

5. The Winklevoss Twins— $150 million

They were quick to spot the potential of bitcoin and invested heavily in it, to the tune of $11 million.

Tempting, right?

So, back to the topic, why I think we should get bitcoin…

One of the main reasons people buy, spend, and save Bitcoins is because they provide anonymity compared to paper currency, online money services such as PayPal, and credit and debit cards.

Well here are few advantages of Bitcoin

1.Anonymous

So, it allows you to patronize stores without letting them know who you are. Many people, of course are hesitant to give out personal information on the Internet. It’s actually a good thing to be afraid to use your debit or credit card online because identity theft is a very common occurrence.

If you use Bitcoins, you won’t have to release personal information online. Bitcoins are the best currency to use online as they wont give away any of your personal information. This is an incredibly important aspect of the Bitcoin.

2. Liquidity

You can easily trade bitcoin for cash or assets like gold instantly with incredibly low fees. The high liquidity associated with bitcoin makes it a great investment vessel if you’re looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand.

3. Low Fees

If you are paying through Bitcoin, you only have to pay a very low fee and sometimes no transaction fees at all. If a person wishes that his/her transaction gets processed fast, he has to pay a transaction fees which is still very low as compared to any financial intermediary or digital wallets.

4. Non-Inflationary

Easily, the central government can get fiat currencies printed as much as they want. When the economy is slowing down it is not able to pay off it’s the national debt, the government orders to print more currency and inject it into the economy.

This causes the value of a currency to decrease as more people have more currency. Also printing more notes creates inflation and increases the prices of the commodity. It is because now more people are willing to pay for a particular commodity and the seller has to increase the price in order to make the sale.

5. Easy Use

Bitcoin users can pay for their coins anywhere as long as they have Internet access. Because users are able to send and receive bitcoins with only a smartphone or computer, bitcoin is theoretically available to populations of users without access to traditional banking systems, credit cards and other methods of payment.

However…

We still have to be careful when using Bitcoins

Despite, the tempting advantages of Bitcoin, we should be wise on using it because…

1.Black Market

If we heard “internet”, of course there are so much black market. bitcoins were used for money laundering and people operating in black markets, which did not want to reveal their personal information and get payment secured.

In money laundering, middleman/intermediaries would collect money from one source and transfer it to another source through Bitcoins.

2.Hacking

Hacking is a big threat facing a bitcoin investor. Bitcoin exchanges let you buy and sell your cryptos using a mobile app or website. This leaves them susceptible to hacking and theft of all your investment. There are so much hackers that we should be careful of right now.

3.Lost Wallets

There is a possibility if your hard drive crashes or virus corrupts your wallet file, you lose your bitcoins. You can go from a wealthy to bankrupt investor within seconds with no way to recover.

However, I think Bitcoin is one of the best way of investing your money. There are so many advantages. But we should always be wise while using it.