The Bitcoin is a virtual currency invented by Satoshi Nakamoto, a Japanese, who is still unknown to the general public today.
It is an encrypted currency or cryptocurrency whose “production” began in 2009 using open source software made available by its creator.
Bitcoin is “mined” (or created) using online computers that use this software, following a protocol. Agents who have processed transactions with Bitcoin are paid by this currency.
Computers are also used to verify, secure and record these transactions in a virtual ledger called a blockchain.
The stock of Bitcoins that can be produced has been set at 21 million in order to prevent this currency from being prone to inflation.
However, this virtual currency, which is not backed by any state, is just like other market currencies subject to financial market speculation. Its value was multiplied by fifteen in 2017.
Invest in Bitcoin : Notice
Bitcoin is not regulated by any state or central bank. It regulates itself, thanks to the decentralized computer system on which it is based. Bitcoin remains a controversial currency and while some countries recognize it, others have banned its use.
The European Central Bank considers Bitcoin to be a virtual currency based on a good pattern and which markets very well. However, she advised banks in the European Union not to use it, nor to offer services regarding this cryptocurrency.
How to invest in Bitcoin?
You should know that this virtual currency is used to carry out online transactions. It can be exchanged for real hard currencies like dollars or euros.
To invest in Bitcoin you can:
To produce it – but for that you need very powerful computers.
Buy them on online platforms with US Dollars or another currency.
These exchanges take place outside banking networks and do not have a legal framework or control by any authority.
Platforms to buy or sell Bitcoin
There are several such platforms on the internet – here are just a few:
If you want to buy and sell Bitcoin without fussing over your head, I recommend the Coinhouse platform which allows you to buy and sell cryptocurrency very simply and securely.
How to make transactions with Bitcoin?
To be able to pay or buy with Bitcoin, you must have an electronic wallet (called a wallet).
This purse can be located on one of the following media:
Software that you install on your computer. An app that you can download to your smartphone. Directly online on a website where you have to create a wallet that you will manage yourself. You should know that the transactions are in fact “scripts” which are sent to you by a seller who sells his goods and / or services in Bitcoins.
To be able to buy a good or service you must transfer the amount of Bitcoins using this address or script. All transactions follow a complex computer verification protocol to prevent fraud.
Some good reasons to invest in Bitcoin:
Even though it is a virtual currency, Bitcoin has many advantages.
If you are interested in Bitcoin, here are some good reasons to invest in this virtual currency.
Reason # 1: A currency without influences
It is a currency that does not depend on any state so it is not subject to political or even economic influences from any country whatsoever.
Reason # 2: No regulation
It is a currency that does not depend on the regulations of a financial market.
It has its own market which is free and which depends on:
Supply and demand
Transactions carried out there.
Reason # 3: No risk of devaluation
It is a currency that cannot depreciate since its production is determined by the code that created it. Therefore it will not be possible to produce more than 21 million units. Notable difference compared to a traditional currency where the printing press influences the value of the currency on the markets. With Bitcoin you therefore do not risk seeing it depreciate due to inflation.
Reason # 4: An increasingly accepted currency for payments.
It is a currency with which you can pay in many countries for goods and services. More and more merchants are accepting payments in this currency and their number is expected to increase across the world.
Reason # 5: Invest without an intermediary
To invest in Bitcoin, you don’t need to go through the traditional banking network or pay the fees and commissions that go with it. Your electronic purse (wallet) then becomes a real electronic bank that you manage on your own according to your needs.
Reason # 6: You dispose of your Bitcoins when and how you want them.
You can dispose of your Bitcoin however you want – with no caps, no overdraft risks, no penalty fees and all the other inconveniences of a bank account.
Reason # 7: No risk of inflation.
Machines and computer programs can handle the rate of inflation better than a central bank that is under the influence of politicians.
Reason # 8: Free transactions.
Transactions with Bitcoin are most of the time free, unlike banking transactions, which often generate fees and / or commissions.
Reason # 9: A stable currency that inspires confidence.
Bitcoin reacts to crises happening in the world in a much different way than a traditional currency.
When there is a political or economic crisis, it has been observed that the value of Bitcoin rises as the prices of traditional currencies collapse.
Indeed, investors seek to invest in a currency that is more stable and that does not depend on any political power or economic system.
Reason # 10: A safe haven in the making?
This stateless and legal currency is very likely to become a safe haven just like gold has been for centuries.
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