What exactly is Bitcoin?
Bitcoin is a digital currency system that is decentralized, peer-to – peer, designed to enable online users to process transactions through a digital exchange unit known as Bitcoins. That is a virtual currency, in other words.
The bitcoin system was created by an undisclosed programmer(s) in the year 2009. Since then, as an alternative to US dollars, euros and commodity currencies such as gold and silver, Bitcoin has attracted huge attention as well as controversy.click for more info
Up to Success
Before the year 2009 Bitcoin had not attained much attention in the business and finance world. It gained popularity in the period 2011-2012 when it gained more than 300 per cent. Bitcoin’s value has grown by 400 per cent since last year’s August. As a result, the cryptocurrency continues to receive attention from venture capital firms and investors around the world.
In the first half of 2014, venture capital firms in the first quarter invested $57 million in Bitcoin, followed by another $73 million in the second quarter amounting to a total of $130 million, which is 50 per cent higher than the total of $88 million in the last year. This is a complete contrast to the 2012 scenario where a relatively small amount of $2.2 million was earned by Bitcoin companies.
These statistics demonstrate without doubt that Bitcoin is worth your investment, which raises the question of how to buy and invest in Bitcoin?
A Guide for Bitcoin Novice Investors
The easiest and least difficult way of investing in Bitcoin is through buying bitcoins. There are many established firms that are involved in the business of buying and selling bitcoins, abbreviated as BTC, mainly in the US as well as abroad.
If you live in the U.S. then the location you are looking for is Coinbase. Coinbase delivers BTC to its customers at an average 1 per cent rate above the current market level. US residents have the option of synchronizing their Coinbase wallets with their bank accounts. As a result, future payment transactions will be made trouble-free. This company also gives you occasionally the right to purchase automatic bitcoin. For example, if you’re interested in buying $50 in bitcoins at the start of each month, Coinbase will allow you to set up an auto buy for that amount.
Beware of the terms and conditions before you start using this service. You will not be able to control the price at which the BTC is purchased every month if you have subscribed to an automatic bit coin service. Notice that Coinbase is not operating as a Bitcoin exchange, i.e. buying and selling the coins directly from the service. Since the company has to source the coins from other buyers, you can encounter delays or disruptions when placing orders during fast moves on the market.