Bitcoin: Know what you’re buying

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Bitcoin is a type of cryptocurrency, meaning it’s a decentralized worldwide digital currency. That implies, bitcoin is not controlled or regulated by the government, it’s not controlled or regulated by private entities like the Federal Reserve, and it’s not controlled or regulated by big banks. This is great news for some people because that means that these entities cannot manipulate the value of Bitcoin like they can are fiat money by just printing more of it. But this is also bad news for other people because these entities would not want to lose their power so you can imagine that they’re going do what they can to block the use of Bitcoin like we’ve seen happen in different countries. By the way, the people who want to trade bitcoin, this is one of the best bitcoin auto trading platforms we have come across in a while.

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Bitcoin is a peer-to-peer network, which means the owners and the users of Bitcoin are the ones that are monitoring it, and also this peer-to-peer system – it’s pretty new. The problem with using Bitcoin as a currency is that a lot of places don’t accept Bitcoin yet. However, many people are excited because just a few days ago, Amazon bought three Internet domains related to cryptocurrency. So what does that mean exactly? Well, only time will tell, but if Amazon ever started to use Bitcoin in the future as a mean of payment – that would definitely change the game for cryptocurrency.

One should also be aware of how Bitcoin is valued. The price of Bitcoin is based on what somebody else is willing to pay for it. It goes back to supply and demand. On the one hand, as more and more people hear about Bitcoin with all of the International publicity, you have this massive influx of buyers making the demand for Bitcoin go up. Also, right now bitcoin is scheduled to split on November 16th, and historically lots of people like to buy bitcoin right before a fork happens. Now, on the supply side, Bitcoin was created with a cap. The way bitcoin was originally created, you can only have 21 million bitcoins in existence, ever. Once those 21 million bitcoins are created or mined (which is a technical term), you cannot create any more bitcoins. So, if the demand for something goes up when you only have a limited supply of it, the price will naturally rise.

Purchasing Bitcoin is no rocket science, but it’s also not simple like buying something from Amazon. You have to know how to buy Bitcoin. If you decide to purchase or invest in Bitcoin you have to use the cryptocurrency exchange that allows you to buy and sell Bitcoin because most regular exchanges don’t let you do that. Furthermore, Different countries have different regulations, and we’ve seen China and more recently, Vietnam trying to ban certain exchanges, so you need to know what’s allowed in your area. The exchange that we are most familiar with is called Coinbase. It’s super simple to use, and it’s one of the most popular exchanges out there.