After a supermajority vote, in which Bitcoin Law received 62 out of 84 of the legislature’s vote, the digital currency will become legal tender in El Salvador. The Republic of El Salvador is the first country in the world to adopt bitcoin as legal tender, with the price of bitcoin up by 5% soon after the vote.
President Nayib Bukele sent the proposed law to the country’s Congress earlier on Wednesday. It was stated that the purpose of the law is to regulate bitcoin as "an unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.”
Across El Salvador, prices can now be displayed in bitcoin in a historic first for the world. Additionally, taxes can be paid using the digital currency and any exchanges made in bitcoin will be exempt from capital gains tax. The Bitcoin Law draws attention to issues with traditional financial services, claiming that approximately 70% of El Salvador are without access. It is hoped that bitcoin will improve financial inclusion across the nation.
However, bitcoin is well known for its volatility and has recently been labelled a “scam against the dollar” by former US President Donald Trump. Even the Bank of England has warned that a shift of deposits to digital currencies from traditional high-street banks could cause extensive economic turbulence. For some, it remains unclear as to how El Salvador will successfully roll out bitcoin as legal tender.
Businesses today must keep up with the times to entice all customers and give them little or no reason to go elsewhere. With the world getting smaller by the day due to the internet and how it is used by businesses and customers alike, companies who aren’t riding the wave could find themselves struggling to keep up with their competitors.
The best way in which you can boost your business is to be on top of the latest technology trend and use it to its maximum advantage, and embracing cryptocurrencies like Bitcoin and Ethereum would certainly do that. However, before you decide that taking Bitcoin will make your business explode overnight, there are a few other things you need to consider first.
Bitcoin is very much a hot property, as is Ethereum and, as of this moment, Dogecoin. They are in the news every day, and ‘Bitcoin prices’ is one of the most searched terms on Google. It would be easy to assume that cryptocurrencies would naturally be used to purchase goods in the same way we once used cash.
However, this is not currently the case. It is not because Bitcoin and other cryptocurrencies are not safe and secure (because everybody already knows this is not the case), but instead, it seems to be a problem of perception, which is always a critical factor in the mass adoption of anything new.
While those with a decent working knowledge of Cryptocurrencies do not share this bias, there is a strong current perception (especially in the face of daily stories about the rising price of Bitcoin) that Bitcoin is something you invest in, not something you use to buy everyday items.
It could be argued that, given the current perception of Bitcoin almost as a commodity, that the person in the street is as likely to pay for a newspaper or a can of Red Bull with Bitcoin as they would using a bar of gold.
This looks to be the main barrier in the way of accepting, for example, Bitcoin as a method of payment online. The technology should never be a problem; but instead, it is the willingness of the customer to use it.
Social media can play a significant role in this by normalizing the use of Crypto for everyday purchases. Seeing influencers using Crypto as a currency and not something that just sits in exchanges like Coinbase will increase the ability of regular users to see digital currencies the same way they see the ones they use every day.
Suppose you are not sure about using cryptocurrency or feel that perhaps this is not the way forward. Just think about how customers used to pay on sites like eBay 20 years ago, which was mainly cheque or cash through the post. Paypal was not really trusted as a payment method, whereas now it is most definitely preferred and indeed requested by most if not all sellers.
Launched in 2009, Bitcoin signalled the start of the cryptocurrency movement. Despite there still being plenty of mystery surrounding its creation, Bitcoin mania shows no signs of slowing down.
On its way to becoming a global currency, more merchants are beginning to accept Bitcoin as a legitimate payment form, and some cities around the world even have dedicated ATMs for the cryptocurrency. Some of the first tangible items ever purchased with Bitcoin were two large pizzas in 2010, the value of which today would be worth more than $190 million. Although it continues to attract scepticism from the world’s central banks and many institutional investors, cryptocurrencies don’t deter the savvy capitalist.
As an investor, it is important to create a diverse portfolio that contains both safer and riskier investments. Ideally, it should include a mixture of stocks, fixed income, and commodities, such as gold. Although adding cryptocurrencies to a portfolio is perhaps considered risky, having a good spread of investments avoids creating an unnecessary threat to your capital and protects your assets against economic turbulence. Smart investors should work towards building a complementary and well-balanced portfolio and, in the modern market, this often includes cryptocurrencies.
Over the past year or so, the perception of Bitcoin has slowly begun to change. Initially, it was misunderstood by people and labelled as untrustworthy and vulnerable to extreme short-term fluctuations in value. However, as household names such as John Lewis and Tesco continue to endorse Bitcoin and even accept it as a legitimate currency, attitudes are beginning to shift. Whilst there is still a long way to go in terms of regulation for Bitcoin, the reputational troubles it once faced have started to recede.
It is important that those looking to safely incorporate both gold and crypto into their portfolios use regulated providers.
Despite this, investors should still tread with caution when investing in cryptocurrency. As a relatively new currency, there is a lack of historical data and analysis that can be used to predict long-term performance. Unlike fiat currencies, such as the British pound, Bitcoin has a maximum supply of approximately 21 million coins. This has led some to believe that the scarce asset will continue to increase in value as government-issued currencies decrease. Others believe it could eventually become the first truly global currency. However, due to its unpredictability, investors should avoid ‘putting all of their eggs in one basket’ and consider adding other valuable commodities to their investment portfolios, such as gold.
While they are both finite resources, Bitcoin and gold play very different roles within an investment portfolio. Many people choose to invest in cryptocurrency for capital appreciation and because its volatility often leads it to being viewed as a quick way to make money. Gold, however, is often associated with longevity and is seen as a tool of wealth preservation. With a track record of thousands of years, the precious metal still carries importance in today’s society. Although its price has varied, it has remained consistent and increased by an average of 49% over the past five years, making it a safe addition for any investment portfolio.
Ultimately, gold and Bitcoin go hand in hand. Historically, when Bitcoin has crashed, gold has rallied and vice versa. The two assets can be very complementary and investing in both could help towards building a portfolio that benefits from both long and short-term profits, providing it is done safely.
It is important that those looking to safely incorporate both gold and crypto into their portfolios use regulated providers. Ideally, the company should also have a proven track record with other investors; this is particularly important for cryptocurrencies, where the landscape is still unfamiliar. Whilst newer cryptocurrencies, such as Dogecoin, can seem attractive to investors, their relative newness to the marketplace means that investors should proceed with caution, especially until more is known about their vulnerability to fluctuations.
By investing in both gold and Bitcoin, investors can also lower the risk of their portfolio and ensure that not all of their capital is tied into a high-risk investment, such as Bitcoin. By periodically converting some cryptocurrency into a more stable asset, such as gold, investors can potentially shield themselves from some of the currency fluctuations they may be exposed to if their investment portfolio was fully focussed on Bitcoin.
First time investors should do plenty of research beforehand and possibly even seek the advice of a professional adviser, to ensure they are being smart with their investments.
Whilst it is likely that Bitcoin is here to stay and will continue to gain popularity, investors should still tread with caution. Until a more concrete regulatory system is put in place, cryptocurrency will remain volatile. Smart investors should ensure their portfolios are well-balanced with other investments, such as gold or other precious metals, to protect their overall worth and create a safe haven for the future.
About Minted
Founded in 2018, Minted is a technology platform where anyone can buy, sell, save and transfer physical gold. With an easy-to-use mobile platform and app, Minted makes buying gold simple, safe and affordable. Customers can set up flexible savings plans and invest amounts of their choice into gold each month. With market-leading buying rates, Minted is the only gold savings app where users can get ownership and delivery of pure 999.9 24kt LBMA physical gold.
Minted’s users aren’t tied into a contract and can sell their gold instantly, at any point, at better rates than on the High Street. Regulated by the Financial Conduct Authority, users’ gold is safely stored in a high-security UK London vault and is fully-insured to market value.
The leadership team includes co-founder and CEO Hamzah Almasyabi, co-founder Haroon Siddiq, co-founder and consultant Shahid Munir, and managing director Rebecca Hutchinson.
Visit the Minted website to find out more about buying and saving in gold: https://theminted.com/
In this article, Mrugakshee Palwe takes a deeper look into what Blockchain is, how it works, and why it’s required to make cryptocurrencies like Bitcoin possible.
What are the properties of a Blockchain network?
Blockchains, in general, have three properties:
Internet vs. Blockchain
The invention of the internet is a common comparison to the way Blockchain and cryptocurrency is entering the mainstream. After the internet was established, anyone from around the world had access to information. The ability to publicise your voice became possible, followed by the ability to keep current with the times. The internet essentially decentralised information, creating somewhere we can easily trade, transfer, and share information.
What the internet did to information, Blockchain is doing to money. Various Blockchains are creating the internet of money, a global financial ecosystem that allows us to trade, transfer, and share value in a decentralised way. Just like pre-internet, we relied on centralised sources for our information. We currently rely on centralised entities dubbed as banks to provide our financial infrastructure. Blockchain is changing this paradigm at a staggering rate.
No Bitcoin without Blockchain
Bitcoin was invented on 31st October 2008 and launched on 3rd January 2009. The attempt to figure out how to securely link together transactions goes back as far as 1997 with foundations rooted in “HashCash”, a pre-Bitcoin phenomenon. Without the founders of Bitcoin figuring out how to create a tamper-proof chain of transactions, Bitcoin would not be possible.
So how does it all work?
The Bitcoin Blockchain is a series of individual blocks that contain transactions taking place on the network. Computers around the world maintain the same copy of each individual block. These computers form the Bitcoin Network and maintain the security and authenticity of the Blockchain.
The transactions that take place on the network are put into blocks and linked together cryptographically, and thus the Blockchain has been an obvious choice of words to describe the underlying technology to Bitcoin and other cryptocurrencies.
Blockchain cuts out the middleman
In the original whitepaper where Satoshi Nakamoto introduced Bitcoin, he detailed a “peer-to-peer electronic cash system”. Peer-to-peer means that there is no need for a third party to authenticate transactions on the network.
Cash transactions are a peer-to-peer payment system. There is no third party required to facilitate the transaction between you and a merchant for a purchase or transfer when using cash. The property of cutting out the middleman in online transactions has the potential to disrupt many industries. For example, from making supply chains more efficient to making global financial transactions faster and cheaper.
The difference between Blockchain, cryptocurrency
Cryptocurrency is an application of Blockchain. Just like the internet serves many applications (like websites), there is a wide range of cryptocurrencies, each with their own unique purpose serving as applications on their own Blockchain. Blockchain is the underlying infrastructure that makes cryptocurrency possible.
Another point worth noting is that not all Blockchains have an associated cryptocurrency. While cryptocurrency is the first application of Blockchain, industry professionals have found ways to apply the technology in a variety of ways that don’t require a cryptocurrency to be tied to the Blockchain.
The many uses of Blockchain
A new industry is emerging in the technical corners of the planet. In finance, Blockchain has many use cases including tokenisation, cross-border transactions, and censorship-resistant payments.
In other industries, Blockchain can be used to form agreements in business relationships to reduce disputes and ambiguity between partners. Smart contracts, which are self-executing coded contracts, have enabled new forms of digital agreements. This becomes very useful as it digitises the contract and automates its execution.
Applications that are built on top of Blockchains are called decentralised applications, or dApps for short. dApps are applications that exist on decentralised networks such as Ethereum. Ethereum can be thought of as an application or token platform, with the capability of hosting dApps. Your dApplication can leverage aspects of Blockchain such as the durability of decentralised networks, or the censorship resistance of cryptocurrency, simply by deploying your idea on top of an existing Blockchain. You don’t need to worry about the underlying computer infrastructure, as this is provided to you by willing participants all over the world.
Can Blockchain fail?
Blockchains are just software built by humans, and humans can make mistakes. That being said, the Bitcoin Blockchain has been active for more than a decade, without a single successful hack performed on the network. The developers of Bitcoin have decided to make trade-offs with the software, opting for more security and trust, instead of an efficient network that can process a global load of transactions.
Many hacks have taken place on Blockchain networks in the last decade. Hackers either exploit the code directly or gain control of the network through the governance mechanisms. For example, in order to hack the Bitcoin network through governance, you would need to control 51% of the network. This task has been deemed impossible, as the Bitcoin network is so widely distributed that it is nearly impossible to amass that much computational power. However, other Blockchain networks are smaller, and thus, much more vulnerable to a 51% attack.
The difference between public and private Blockchains?
Blockchains can be examined in a number of ways. One of those ways is by looking at who has access to the network. The Bitcoin network, for example, is completely open to anyone and everyone to use, without bias. The Bitcoin network applies no preferential treatment to you based on social status, or geographic location. It is for these reasons that Bitcoin is considered a public network.
A private network is more suited for use cases that require permission for accessing and utilising the network. A private network is better suited for enterprise purposes, such as supply chains, and closed financial systems.
The sophistication and level of security surrounding Blockchain and Bitcoin is remarkable, providing everyday people more power, control and convenience when it comes to managing their money.
What are the downsides of Blockchain technology
The downsides of Blockchain need to be talked about in the context of what that particular Blockchain is trying to solve. If the Blockchain is aiming to be a global payments system, that Blockchain needs to be primed to scale to meet demand, while maintaining security for its users. This is a hotly debated topic, but it all boils down to how Blockchains are implemented and governed.
If we look at Bitcoin, for example, the Blockchain uses more electricity than the country of Ireland in a single year to process no more than seven transactions per second. Contrast this to VISA, which processes 65k transactions per second, and Bitcoin doesn’t quite meet the standards. What’s worse is that adding more computers to the Bitcoin network doesn’t solve the scalability problem. As more computers are added to the network, the network gets stronger security but remains to process only seven transactions per second.
Since the inception of Bitcoin, developers have created new Blockchains that are more scalable but are arguably less secure than the security that the Bitcoin network provides.
Why Blockchain and Bitcoin are such a big deal
In today’s digital age, efficiency and privacy are more important than ever before. The sophistication and level of security surrounding Blockchain and Bitcoin is remarkable, providing everyday people more power, control and convenience when it comes to managing their money. Whether digital money takes over our traditional paper money that is stored in physical banks is yet to be seen, but one thing is for certain: the complex world of Bitcoin and Blockchain is on the rise, with absolutely no signs of slowing down.
When it comes to establishing the journey that will lead you to achieve the greatest points of crypto success, you have to make sure that you have all of the additional segments into consideration. This is of great importance because if you are interested in reaching the ultimate points of achievement and earning insane amounts of profits, then you should explore every possible aspect of the crypto process. To begin the actual journey of this notion, you will get a chance to go through the most important decision-making process that will determine the whole future outcome. This is where you will have to settle on which crypto aspect you are going to explore. If you have been interested in the trading concept of the crypto world, then this article is the perfect starting point for you.
Having all of this explained, in order to make the next big step that will allow you to begin the overall crypto trading process, you will have to focus your attention on a specific digital value. All of this will help you narrow things down, thus allowing you to explore all of the important trading points that Bitcoin has to offer. Here, you will be able to explore the most prominent digital value, thus learn all about your role as a future Bitcoin trader. With all of this in mind, it is time to start the actual trading process, thus explore the most innovative Bitcoin trading solutions that will come your way.
Let’s begin with the most valuable Bitcoin trading tips.
Starting this segment, the most significant tip that we have to suggest that will help you establish the beginning stages of your trading journey is the notion of finding a suitable and user-friendly trading platform. This is the case just because if you are just now starting to explore the world of Bitcoin trading possibilities and you have little to no trading experience, then you should start by exploring the concept of using Bitcoin trading platforms.
This is probably one of the most innovative trading solutions that have been created in a way to give people that are interested in the world of crypto trading a rather equal chance at reaching the points of success. This method is based on the latest technological advances and it is completely automated. Both features will give you the needed push into the right Bitcoin trading direction.
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Once you have successfully found the specific method that you should like to explore, you can access Bitcoin trading sites and thus explore all of the additional features that are incorporated within these popular Bitcoin trading platforms. This is where you will be able to explore every possible aspect that the usage of these platforms has to offer, thus focus on exploring the most profitable trading deals.
To begin the actual process of Bitcoin trading using this particular method, you will have to begin with the creation of your online trading account. This segment is rather simple to achieve because you will get a chance to follow the quick and easy registration form. Here, all you need to do is provide all of the required information, place a strong and secure password, and approach the next big step of your trading journey. Once all of this is completed, you will have to place the initial trading deposit, thus activating the most powerful trading algorithm.
Make sure to incorporate all of the significant trading points that we have discussed so far, thus approach the concept of reaching Bitcoin trading success.
These days Bitcoin is as valuable as gold and thanks to that fact, thousands of people are looking to invest in it and make a profit. Trading with this cryptocurrency has become a very popular occupation. Not only that but there are many stories of how Bitcoin changed the lives of many people and even managed to turn some traders into overnight millionaires.
Recently, the number of traders that are registering to Bitcoin’s network has been increasing a lot. The main reason for that is because experts believe that Bitcoin has the potential to rise even more and possibly reach $100,000 by the end of 2021.
That is exactly the topic that we wanted to discuss in this article. We’ll be taking a look at the two main reasons which lead experts to believe this claim. But, before we dive into the details, let’s check Bitcoin’s current state.
At the moment, Bitcoin’s price fluctuates around $40,000. Back in April 2021, it peaked at $63,000 but dropped in value shortly after. Even though Bitcoin was stable for the bigger part of 2021, the sudden drop in value is what attracted traders as they see this as a golden opportunity to invest in Bitcoin.
They use trading sites to sell their Bitcoins after they earn them. Trading sites have become extremely popular in the recent period due to the fact that they provide traders with fantastic services, one of which is an AI system that is capable of determining the future price of Bitcoin.
It collects all the data about his cryptocurrency, analyses it, and then shares the results with traders. Thanks to the AI system, traders can battle the volatility rate and maximise their revenue. Reputable trading sites use this type of software and have a very high profitability rate.
Apart from making a profit with Bitcoin, this cryptocurrency is currently accepted as a payment method at many global brands. The list includes the likes of Starbucks, Microsoft, Wikipedia, AT&T, Overstock, and Home Depot.
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Now that we’ve cleared up everything there is to know about Bitcoin’s current state, let’s check out the two main reasons behind Bitcoin’s potential rise in value.
The first reason why Bitcoin is expected to rise in value is the massive institutional interest. We mentioned that there are tons of global brands that accept it as a payment method. If you are wondering how that influences Bitcoin’s price, it is because they are contributing towards its stability. The more stable Bitcoin is, the higher its value will be.
Speaking on that note, it is worth noting that Bitcoin’s price rose drastically after the famous Tesla investment. Not only did Tesla manage to spike the value of Bitcoin by more than $4,000 in a few days, but it also motivated many other companies to invest and integrate Bitcoin into their systems.
The second reason as to why it is believed that Bitcoin will rise is halving events. History showed us that Bitcoin always peaks a year and a half after halving events end. The last halving event was held in May 2020.
With that logic in mind, a year and a half will pass in the fourth quarter of 2021. While experts do not have an accurate date of when Bitcoin’s value will spike, it is expected for it to be around November.
These two reasons are extremely reliable and backed by facts, which is why many traders believe them and are already looking to invest and possibly make a profit.
In February, Tesla joined the exclusive club of companies that support Bitcoin. The car manufacturer managed to shock the stock market after they announced that they invested $1.5 billion into this cryptocurrency. In doing so, they expressed their full support for Bitcoin and everything that it stands for.
It goes without saying that this massive investment caused a lot of stir. That is exactly the topic that we wanted to discuss in this article. We’ll be taking a look at the impact of the Tesla involvement with Bitcoin and see whether it was good or not. Let’s dive into the details.
Shortly after they invested in Bitcoin. Tesla announced that they would accept this cryptocurrency as a payment method, which has massive benefits for all the users. The first and most obvious benefit is the fact that they will be able to use this cryptocurrency to purchase some of the best vehicles on the market.
The second benefit is the fact that Tesla is a major global brand that supports Bitcoin and thus contributes towards its stability. Just for the record, some other global brands that support Bitcoin are Microsoft, Shopify, Expedia, Overstock, Whole Foods, Starbucks, Wikipedia, and AT&T.
The best outcome from their investment regards Bitcoin’s price, though. Just before the $1.5 billion investment was announced, Bitcoin was valued at around $47,000. After Tesla went public, Bitcoin’s value sky-rocketed and went over $50,000.
The massive surge attracted numerous traders who were more than happy to start trading with Bitcoin and make a profit out of the recent events. As you know, Bitcoin has a very high volatility rate and events such as these can have a massive impact on its price.
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Bitcoin trading sites subsequently recorded a massive rise in the number of registered traders. These are reputable platforms that offer great services to all registered players and have a very high profitability rate. Thousands of new people joined the networks and tested their skills to see whether they could make a profit out of the current Bitcoin situation.
It is safe to say that Tesla’s investment proved to be extremely effective and efficient for both Bitcoin and the company. Why? Shortly after their investment, it was reported that Tesla earned $1 billion in profits. Not only that, but the rumours alone drove their stocks and allowed the company to bag $100 million.
So, many other companies decided to follow in their footsteps and invest in this cryptocurrency and integrate it as an accepted payment method. As for the reason why are they willing to trade with Bitcoin, it is because Bitcoin has numerous advantages over regular payment methods.
For starters, all transactions are instant. Due to the fact that banks are excluded from the process, the users can mine Bitcoins, thus process the transactions immediately. Not only that, but fees are also not charged. And finally, Bitcoin utilises a method called cryptology. Thanks to this technology, all Bitcoin users gain a certain level of online anonymity and boost their security.
These advantages are beneficial to both companies and customers as they are able to purchase products and services in a much more efficient manner.
As you can see, the impact that Tesla had with the Bitcoin investment was major and extremely positive. Not only did it allow the price of Bitcoin to rise, but it also contributed to its stability. Many other companies also followed in their footsteps, and thanks to the increased interest, experts believe that Bitcoin can rise as high as $100,000 by the end of 2021.
Bitcoin’s reign over the crypto market has been going strong for over a decade now and with good reason. The world’s first cryptocurrency might be getting up there in age, but the one thing it hasn’t stopped doing in all its time on the scene is growing. Bitcoin is always changing, and in most cases, it’s for the better! Unlike most of its competition, Bitcoin pays attention to what users need and adjusts accordingly. While there are plenty of excellent examples of this, one of the best ones comes from the top-notch Bitcoin software that users can’t seem to get enough of!
Bitcoin Wallets are the most essential tool in any Bitcoin user’s arsenal. The name of this software explains it all. Since Bitcoin is a digital currency, users need a way to store it in the virtual space so they can use it throughout different devices. Sure, this might sound like an easy enough feat, but just like old-school wallets, Bitcoin wallets come with the risk of theft. Unfortunately, there are plenty of people online that aren’t above messing with other people’s property, and with Bitcoin carrying a lot of worth, Bitcoin wallets are a prime target for hackers.
The bad news is, we doubt that hackers will ever stop targeting users that have worked hard for their Bitcoin. The good news is that Bitcoin wallets have come a long way when security is in question. While in the early days of Bitcoin this software might not have had the best protection, it’s currently one of the best ways to keep your Bitcoin safe. These apps are updated with new security patches regularly, and they have the added benefit of being insanely convenient when you need to pay for something on the fly!
Automated trading apps are the Holy Grail of apps when it comes to profiting, especially for newbies that are taking their first steps into the world of crypto. If you’re familiar with traditional Bitcoin trading, then you know that it can be a very hard sell. While it is the most profitable way to earn Bitcoin, it can be insanely demanding. Users need to learn everything they can about cryptocurrencies, research market trends, and experiment with different strategies.
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These apps are so beloved because they practically discard all of the requirements of traditional Bitcoin trading and give everyone a fair shot at profiting. They use advanced AI algorithms that gather information from the latest news on Bitcoin, and use what they learn to invest in profitable market opportunities automatically. Thanks to this, not only is everyone privy to a chance at becoming a Bitcoin trader, but they also don’t need to invest much time into the activity.
Like Bitcoin trading, Bitcoin mining has been around since the very release of the cryptocurrency. While Bitcoin mining has lost plenty of its appeal over the years, tons of Bitcoin enthusiasts still go for this option. A big reason why so many people are still opting in to be Bitcoin miners is because of the top-notch mining software currently available out there, and one of the best choices for Bitcoin miners these days is the coveted remote mining software for mobile devices.
The name of this software might be a bit misleading. It’s virtually impossible to mine Bitcoin through mobile. Instead, what this software does is give you more control over your mining rig, so you don’t have to stay glued to it 24/7. With the help of these apps, users can track their progress anytime, anywhere, make adjustments, and even start and stop the process should the need arise. In hindsight, Bitcoin mining isn’t for everyone, and we don’t recommend it unless you can afford to spend insane amounts of money on premium equipment that can get you off to a good start.
This is a revolutionary cryptocurrency that did not generate much publicity when it was developed in 2008. But, over the following decade, Bitcoin would grow in both its popularity and its use among businesses and organisations around the world. If you're wondering about the background of this cryptocurrency and what propelled this kind of meteoric rise to a market cap of over $1 trillion, we cover everything you need to know below.
Bitcoin was created by Satoshi Nakamoto in 2008, along with the help of other supporters of Nakamoto and its cyberpunk movement. Bitcoin, also known by its ticker BTC, is a distributed cryptocurrency that it is powered by blockchain technology which is a decentralised, peer-to- peer electronic cash system also developed by Satoshi Nakamoto and other developers that worked on the network.
Bitcoin was launched when the world was facing a global finical crisis. Hence, the blockchain network was created in a way that allows it to function based on the input of its users and without the influence of third parties and financial institutions.
The popularity of Bitcoin started to grow after the first halving that occurred in 2012, and the price has surged to $12, which may seem as insignificant movement, but at the time, it showed that the number of supporters in Bitcoin was increasing.
Also, the primary option in obtaining Bitcoin was through mining, and as the number of supporters was growing, there was a need for potential users to trade, reach a consensus about the price of BTC, and make Bitcoin accessible to a wider audience.
These trading sites act as either brokers or dealers, and users are able to exchange fiat currencies into BTC and vice versa. The first exchange platform was Bitcoin Market, established in February 2010. It doesn't exist today, as there were technical and security issues. Nowadays, technology has progressed significantly, and there are lots of different trading sites that offer a lot of options for their users along with high-end features.
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But also, the popularity of Bitcoin has been boosted thanks to automated trading sites that make trading easier and more accessible to crypto newbies. An automated trading system executes trade automatically and quickly, without serious input from the users. In fact, you only need to spend about 20 minutes setting up your account and trade live. If you want to trade on some of these sites, you can register by investing $250.
The demand for BTC was going up, and so was the price, because Satoshi Nakamoto established a decentralised blockchain system that cuts the available supply in half every four years or when 210,000 blocks are mined.
Today the block award is just 6.25 BTC, which makes the mining process more expensive and less profitable for solo miners, which is why they work together or establish mining farms and pools.
But, what's more, the entire number of BTC is capped at 21 million. This also helped with the popularity of Bitcoin because it means that the supply is predominantly smaller than the demand, and as the demand was significantly increasing, the supply wasn't rising at the same pace as the demand, and this is why the price is surging.
Lastly, the support from reputable investors only solidifies the position of Bitcoin as a precious cryptocurrency, and we see a lot of big brands like Starbucks, Microsoft, PayPal, and Tesla accepting Bitcoin payments, which only further helps with the mass adoption of Bitcoin. In conclusion, Satoshi Nakamoto designed a cryptocurrency that is not only rare but has created a blockchain network that propels its growth.
Bitcoin wallets are an essential part of every Bitcoin trading platform, and otherwise, you are required to have a crypto wallet for any other BTC transaction. In case you're just starting out as a Bitcoin investor, it is crucial to familiarise yourself with Bitcoin trading and wallets. In this article, we cover the important aspects of Bitcoin wallets and trading platforms that will help you get started with Bitcoin trading.
A good way to think about Bitcoin wallets is as a place that is designed to store your BTC safely. Security of your BTC is of paramount importance, therefore make sure to take the time and choose a reputable and trustworthy provider as well as all a type of crypto wallet that works for you.
As we mentioned, there are different types of a Bitcoin wallets, but they generally need to have a private and public key in order to be able to function on the blockchain network. And, at the same time, they offer security and the option to send and receive BTC. The purpose of the private key is to generate numerical proof that the transaction is unique to your Bitcoin wallet, and it is also used to sign each BTC transaction.
When it comes to the public key, it should be noted that it is 256 bits long and it features your public Bitcoin address, while the purpose of the wallet is to allow you to receive BTC transactions and ensure that you're the owner of that Bitcoin wallet.
It's also worth noting that the BTC transactions remain confidential in terms of the identity of its users; however, your public Bitcoin address is displayed on the blockchain network along with the data about BTC transaction. If you're a business owner, for example, you would like to share your Bitcoin address with your customers in order to receive BTC payments.
Some of the essential aspects of online trading are the option to buy, sell BTC, or trade for other currencies, including altcoins. One of the latest trends in crypto trading is automated trading sites, which facilitate trading based on defined sets of instructions.
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Therefore, automated trading platforms can identify trading opportunities quickly and trade on a high win rate and accuracy rate. In fact, some trading sites have an accuracy rate of up to 90%, and therefore you aren't required to spend a lot of time and manually make decisions because the AI-based software conducts trading for you. You need only about 20 minutes to set up your account.
There are different types of wallets and they can be connected to the Internet, or they function entirely offline and are designed to prioritise the safety of the BTC funds. So, based on this information, there are hot and cold Bitcoin wallets. The hot wallets maintain an online connection, whereas the cold wallets are known for operating offline.
One good example is a hardware wallet, which is basically a physical piece of equipment like a USB, and its main purpose is to keep your BTC safe. Hardware wallets are not as accessible and convenient for Bitcoin trading online.
In contrast, you will find a lot of different types of hot wallets that are free. In terms of hot wallets, there are web, desktop, and mobile wallets.
The desktop and mobile wallets operate as a software program or on your mobile device as an app that is installed on your smartphone, while the web wallet, as the name suggests, is available on a third-party server, and you're accessing your funds via your a web browser. In conclusion, based on your financial goals, you need to do research and choose a safe Bitcoin wallet and a trading site.
Bitcoin trading has never been more popular. Thousands of people are joining the network with each passing day. 2021 proved to be a historical year for Bitcoin. The institutional interest for this cryptocurrency has never been higher and the number of traders exceeds 5 million.
Many reputable brands such as Tesla, Microsoft, Expedia, Shopify, and Starbucks have spotted the advantages that Bitcoin has as a payment method, which is why they decided to include it as a payment method. The wide acceptance was a major influencer towards its price.
These days, Bitcoin’s value fluctuates between $50,000 and $60,000. At one point, it even reached a peak value of over $63,000. The best part about it is that experts believe that Bitcoin will continue to rise and it is yet to reach its full potential. We wanted to touch on that topic and see what the end of 2021 holds for Bitcoin. We’ll also take a look at the distant future. Let’s break down the details.
Many experts believe that Bitcoin is likely to reach its peak value in the fourth quarter of 2021. As for the peak value, they state that this cryptocurrency can reach a six-figure number for the first time in its history. If Bitcoin manages to reach $100,000, this will mark the beginning of a new era for this cryptocurrency.
As for the reason why experts believe that Bitcoin is yet to reach its full potential, halving events have provided us with a lot of useful information. History shows that after each halving event, it takes Bitcoin a year and a half to peak. Considering the fact that the last halving event took place in May 2020, the peak is expected to be reached around the autumn or winter this year.
The near-future potential is massive and to make things even better, reputable Bitcoin trading sites even provide traders with useful information on the near-future fluctuations of this cryptocurrency. In doing so, they allow them to maximise their chances of making a solid profit. These advanced services are part of the reason why trading with Bitcoin has become so profitable and why so many people are keen on joining the network.
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The distant future of Bitcoin is very hard to determine. The reason for that is the fact that authorities are putting a lot of effort into making sure that Bitcoin stays an outlaw currency. As you know, Bitcoin is highly decentralised and self-sustainable.
It is powered by blockchain technology. Thanks to this revolutionising technology, all Bitcoin users can process transactions and get rewards with it. The process of recording transactions is known as mining, while the rewards for mining are Bitcoins. Once a transaction is recorded and verified, it becomes a block and is integrated into the blockchain.
Thanks to the technology that powers Bitcoin, banks are completely cut off from the process and cannot profit from the transactions because they cannot impose their fees. Not only that, but governments are not fond of things that they cannot control and Bitcoin is controlled by all of its users, not from one centre.
The governments and banks are powerful allies which is why many experts think that Bitcoin will forever be an outlaw currency. Others are a bit more optimistic. They think that a point where the majority of the world’s population uses Bitcoin will be reached and due to the massive pressure, authorities will have no other choice but to make it legal.
While Bitcoin’s end of the year projections are much easier to predict, the distant future is extremely shady. There is nothing to do but wait and see how the situation plays out. One thing is for sure – people will always be fond of Bitcoin as it boasts tons of fantastic advantages.
Bitcoin trading has become the main occupation of many people around the world. Some statistics have shown that there are over 5 million users in Bitcoin’s network in 2021. More so, approximately 100,000 people from around the world have managed to become millionaires thanks to this cryptocurrency.
These days, Bitcoin is writing history as its price went over $50,000 and hasn’t dropped down in a while. It is safe to say that this value is now the stable rate of Bitcoin from which many traders can make a lot of money. Since new traders are joining the Bitcoin network with each passing day, we decided to name a few guidelines that every novice trader should take into consideration when they decide to trade with Bitcoin. Let’s check them out.
Bitcoin has a very high volatility rate. That means that its value fluctuates very often and changes with each passing day. Let’s take the Tesla investment as an example. After Tesla invested over $1.5 billion in Bitcoin, its price surged by over $4,000 in just 3 days. The volatility rate is one of the biggest challenges that traders face in their quest for making the maximum possible profit with Bitcoin.
While it may be impossible for Bitcoin traders to capitalise on future fluctuations of Bitcoin by themselves, trading sites are the platforms that will be able to help them. Some of the most reputable sites of this character feature an advanced service that will indicate when is the best time for traders to sell their assets.
Let's take Bitqh as an example since this is one of the most reputable trading sites on the planet. The Bitqh official website uses an advanced AI system that collects all the data about Bitcoin. The data is then analysed and the AI system can make pretty accurate predictions on the future fluctuations of Bitcoin. The daily profitability rate at this site is huge, which is more than an indicator of how successful their software is. Additionally, it has thousands of registered users from all around the world.
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These predictions are beneficial tools that traders can use to maximise their profits. In short, choosing a reputable trading site like the one we just mentioned can make a lot of difference when it comes to making money.
Halving events are one of the most important processes that take place on Bitcoin’s network. Usually, they are held every 4 years, or after 210,000 Bitcoins have been mined. What is their purpose? They control the flow of Bitcoin on the market and make sure that it is not flooded by them.
During halving events, it becomes very difficult to mine Bitcoins. Their circulation is cut in half. The reason why these events are important for traders is that they often lead to price surges about a year to a year and a half after they finish. So far there have been 3 halving events (2012, 2016, and 2020) and all of them led to price surges.
Basically, there are two types of investments in Bitcoin – long-term and short-term. Depending on Bitcoin’s fluctuations, you will need to make an educated decision on which approach should you take. Short-term investments are done when Bitcoin is expected to plunge in value. These investments allow you to make a quick profit and bail out before the cryptocurrency starts dropping in value.
On the other hand, long-term investments are done when Bitcoin is expected to rise in the near future. The only downside to this type of investment is that you may wait a longer period before you see the fruit of your labour, but the profit will be much higher than the one of short-term investments.
