1. Sign up for Bitdenex
First of all, you need to sign up for an Bitdenex account. Your Bitdenex account is a secure place to store your Bitcoins. Unfortunately, you can’t exchange your local currency into bitcoin without an registered account. Based on the current laws and regulations, you must have a registered account to be able to trade cryptocurrency.
The KYC and AML policy does not allow to trade anonymously. That’s the main reason why you have to sign up for an account, unless you only want to try the FREE account. For the free account, you only need an email address.
2. Verify your Bitdenex Account
You need to verify your Bitdenex account, after you sign up. In order to verify your Bitdenex account, you need to provide some documentation.
When all the details are correct, your Bitdenex account will be open to trade. Once the verification steps are complete, you can start trading.
3. Buy & Sell Bitcoin
To complete your account, you need to do some verification steps before you can fully use your registered Bitdenex account. Go through the verification steps and add the necessary documents. After you add the documents, we will check those and complete the verification after all documents are correct.
We always show you the current exchange rate before you trade. Bitdenex don’t determine the prices. The traders dertermine the prices, so make sure you check the rate before you place your order or limit order.
More Information about Bitcoin
Is it Too Late to Buy Bitcoin?
A very common question that is asked in today’s society, specifically in the investment world and people who are ready to add money for further growth.
Is it too late to buy Bitcoin?
Well, think of it this way. Although Bitcoin could drop at any second, so could any stock or index fund. But are the chances of an index fund dropping high? Absolutely not. The economy could drop at anytime. Bitcoin could fail at anytime. But is this probable? Well, look at Bitcoin’s previous price action. It has steadily increased for the past 33 months. This can change at anytime, but really assess the situation.
Do you believe in Bitcoin?
Do you feel that it’s the future of payment and technological monetary systems? If so, then invest. Nobody can make the decision for you, and nobody can tell you what’s going to happen to the price. Nobody knows for sure, so it is really up to you make your own decisions; however from a normal person’s point of view, someone who wants to invest with the idea of “I want long term growth to the maximum that I can achieve”, this is the perfect option, at least from a person who has watched it steadily increase real time.
Bitcoin is a statement, it’s a political belief to an extent. It stands for decentralization in the monetary system and stands for a free economic world in which you control your own payment and have the security, and the anonymity that you deserve as an American citizen. Bitcoin stands for something much more than “internet money”. It is in its early adoption phase as well; there’s a common saying that revolves around crypto-oriented message boards that says, “The best time to buy Bitcoin was 4 years ago. The next best time is now.”
Bitcoin vs. Gold
A very large controversy that occurs within the spectrum of cryptocurrencies and understanding its true value is the argument between cryptocurrencies and gold.
Has Bitcoin become more important than Gold?
Specifically, many people have begun to believe that Bitcoin is more important to society and to holding a value than gold is. While the subject is very much so up for debate, there are multiple factors that must be taken into consideration before you make a conclusion and take a side on either opinion. To start, we must look at the facts, the pros and cons between each one as well. Gold has been around for ages at a time. Gold has served as a physical and malleable commodity that holds value that fluctuates over time, and while we can’t secure that it will be worth something at a given time, we can assure that it is physically here and will always be here.
Disadvantages of Bitcoin
That’s the advantage that gold holds over Bitcoin, at least when you’re holding Bitcoin on an exchange instead of personally possessing keys and such. Gold has a physical value that has been around for ages, it can be physically touched, carried, and so on. To the general public, Bitcoin can’t do the same. Although Bitcoin addresses can be extracted and possessed through a series of keys (private and public) that can be physically owned, most people don’t have the knowledge to do that.
Most keep their Bitcoin in exchanges or paper wallets that are online companies to say the least. However, gold is also a very dated form of value holding. While some swear by it, some believe it is slowly reaching its inevitable demise.
Bitcoin is a virtual currency that is given value through the process of the world wide web. In order for it to lose value the entire network would have to go down, which is the advantage but disadvantage that it will always have over gold.
Bitcoin in the Next 5 Years
Thinking of the future is definitely worrying especially if you’re trying to understand what the Bitcoin price will be after the upcoming fluctuations it has faced in the past year.
If Bitcoin continues to grow and expand at the rate that it currently has been increasing at, price will reach unprecedented amounts, reaching as much as $100,000 in the next 5 years. However, this isn’t anywhere near guaranteed but looking at possibilities is essential especially if you’re looking into holding Bitcoin as a possible long term investment. The only real thing we have to go on as of right now is previous price action and the possibilities of history repeating itself.
Bitcoin 5 years ago
5 years ago Bitcoin was at prices of nowhere near its current capacity. This capacity was approximately $100 per coin, at some points in the year even less than that. 5 years later it has reached waves of adoption into society and has continued to garner investors and traders alike that no other commodity or stock has received.
Bitcoin has bigger market capital than PayPal
It has surpassed the market cap of major companies such as PayPal and shown incredible progress. Also, Bitcoin has achieved investors and backers like never before. It has received some support from huge technological moguls that have stated the future is in Bitcoin and that it is unstoppable.
All of this news is very bullish, and has some backing that no other currencies or commodities have reached before. If we take all this into consideration, the future is looking very bright. So going off of this, many speculators say that Bitcoin will reach even higher amounts in the future, which is completely possible but there is nothing set in stone, but only a high probability that the price action of Bitcoin will attain some huge milestones within the next 5 years.
Buying Large Bulk Amounts of Bitcoin
After you reach a certain amount of Bitcoin, you might see the huge potential that it has and be interested in buying more than just a few Bitcoin with your debit card.
To determine the future with Bitcoins
At this point you might want to buy thousands of dollars worth of the asset and hold it in your portfolio with hopes of it booming and you living lavishly in a mansion all off of this pretty little asset people at one point called internet money.
So what steps are next?
All exchanges that hold amounts of Bitcoin that are higher than the normal standard amount require you to provide multiple amounts of information that not only verify your identity but also verify your bank account, residence, and purposes of income. This can vary per exchange, so taking into consideration one of the biggest exchanges for buying bulk Bitcoin.
Verification to purchase Bitcoins
5 Tiers of Verification are required in order to purchase a larger amount of that same asset. These tiers start out with standard verifications. In all cases you’ll be required to provide ID, either a passport or driver’s license. In addition, most exchanges require you to show a proof of residence associated with your listed address. This will range from a bank statement to a utility bill, or current lease proof. This can be negotiated with staff members of the exchange as well as they will usually guide you through the process. Final verification processes are usually checks with your bank that will start with generally the exchange contacting your bank and asking about certain questions about you and verifying your identity.
Certain exchanges generally only take wire transfers for large bulk Bitcoin buys, so it’s best to always have control over your bank account that is linked to the exchange you plan on purchasing some Bitcoin from.
Who is Satoshi Nakamoto?
One of the biggest controversies in the crypto world is the developers and people behind the
active development of these currencies.
Primarily, when people heard of the release and development of Bitcoin, it was then released under a pseudonym. It raised some serious questions; why a pseudonym? What was there to hide about this currency, and why would someone release this marvelous technology under an anonymous name? It sparked some serious controversies during the early development phases of Bitcoin.
Power of anonymous publisher
Later, however unbeknownst to the developers and releasers of the technology this currency would prove to become stronger by the fact that it was released anonymously. The concept behind Bitcoin is that it isn’t controlled or owned by anyone. There’s no leading factor that guides it, there’s no single person, agency, or government that controls it. This in essence is what helps it to be such a strong currency. Satoshi Nakamoto released the currency under an anonymous name so that later on there would be no one that created it, no one that led its development.
Otherwise it would risk attaining the status of being centralized. By releasing the currency under an anonymous name, Nakamoto was able to attain the status of decentralized in Bitcoin. People were wow-ed by the fact that something with no known and recognized creator was able to create such a powerful and successful method of purchasing and selling items and making near instant transactions.
To this date, no one knows who Satoshi Nakamoto is. His profile has remained anonymous, and the only known fact about him, or them, is that he/she/they are very rich with the amount of Bitcoins they possess at the moment.
While people have looked at Bitcoin as a seemingly viable way of gaining money through short term investments, Nakamoto stayed true to the fact that he wanted Bitcoin to be a way of making anonymous and decentralized payments, and that is what has propelled the success behind Bitcoin. There’s no controller, no agency, nothing behind it, just a pure monetary unit in its purest form.
Sending Bitcoin from address to other address can generally be a little confusing at first if you’re just getting started.
How to send Bitcoins?
Bitcoin is a cryptocurrency that relies on sending and receiving the crypto through a network of wallets which contain unique wallet addresses. Each of these wallet addresses is unique to one another and different exchanges will yield different results that you can use to send and receive them. Think of a Bitcoin wallet as your personal little bank with a street address. That street address is generally owned by an exchange that you open the wallet on, which you have partial access to. People can come to your bank and leave money or you can give money that comes out of this bank. That is generally what a wallet is.
Confusion sending Bitcoins
It can be a receiver of money or a sender of money depending on the type of purchase or such that you are making. It can get a little confusing in the sense that wallet addresses are generally not little codes or words that you can just create. They are generated by an exchange and possess usually a random string of numbers and letters in different orders in random capitalization processes. These wallet addresses are unique to their owner and can possess usually a very large amount of Bitcoin before being considered full.
How to send to someone else?
Simply ask for their Bitcoin address, go to the “send” tab on your exchange, and send the desired amount of funds. It is usually best done by copying and pasting so that the wrong address is not given. Then, you should be able to go to your recent transactions list and see where the transaction is, if it is not already delivered to the person.
When you send Bitcoin your exchange will generally keep you updated as to where it is as well, and how soon it will be settled in the receivers wallet.
How Long Does Bitcoin Take to Send?
If you’re unfamiliar with Bitcoin, it may be extremely controversial in the sense that people are always complaining about transaction times. Sometimes they are nearly instant, and sometimes they can take up to hours on end to finally settle.
Speed Bitcoins depends on several factors
The speed at which Bitcoin is sent, received, confirmed, and considered settled depends on multiple different factors that rely on each other and are dependent. For example, one of the main factors that goes into the speed at which these transactions are going to be settled and received is the amount of Bitcoin that is being sent on the blockchain. The larger the Bitcoin amount that is being sent, generally the longer it will take. This is the general rule of thumb because the blockchain network takes longer to process bigger amounts of Bitcoin. So if you’re sending a full Bitcoin to another address and then sending 0.01 Bitcoin to another address, you can bet that the .01 transaction will arrive and settle first. However, this isn’t the only factor that affects speed and settlement time; transaction fees are huge and very overlooked in today’s world.
Transaction fees can be toggled and edited to the max capacity or lower capacity. The higher fee you activate, the faster your transaction will be processed, but generally the more expensive that same transaction will end up being. You can usually toggle the amount of the transaction fee you wish to enable on most exchanges or wallets. Electrum allows you full customization over this.
It is generally widely common to enable a large transaction fee when sending large amounts of Bitcoin, since otherwise it will take a pretty long amount of time for the transaction to finally be acquired. A general rule of thumb is, the lower the volume of Bitcoin, the lower transaction needed, and vice versa when in reference to larger Bitcoin volumes.
Can You Trade Bitcoin?
One of the best things about Bitcoin is that it has been referred to as being trader’s heaven. Traders in the general world are faced with a plethora of obstacles that are generally really hard to overcome.
Pattern Day Trader
In the stock market, one of the biggest obstacles that are in the way for traders is the Pattern Day Trader rule. What this means it that if you’re trading account is under $25,000, you’re not allowed to make more than 3 trades within the same day. It can reach extreme limits, and because of this many people very limited to what they’re able to do with their funds.
Bitcoin is the solution
Bitcoin offers some great relief from this in various ways. Generally, Bitcoin allows you to make infinite amounts of trades within the same day, unlike the regulated stock market. With this, you can make as many trades in the same day as you would like. You can absolutely trade Bitcoin like people trade the stock market or the foreign exchange market. There are various ways that you can go about this; you can margin trade, regular trade, and so on. Various exchanges offer different types of safe havens and methods of obtaining a trading platform.
Most exchanges offer the most common forms of exchanges to be accepted as well. This can range from Bitcoin to US Dollars, Bitcoin to Euros, Bitcoin to British Pounds, and so on. Most platforms allow you to trade cryptocurrencies as a whole as well. With these platforms, you are also able to make trades at any time of the day unlike general stock markets and Forex; there are no limits to when you can trade.
It’s no secret that Bitcoin has some huge price volatility, especially if you look at the recent months there has been some serious ups and downs when it comes to price action.
This calls for multiple actions: one, if you are using margin for certain Bitcoin positions it might be best to realize your profit sooner rather than later. This way you don’t lose more than what you initially bargained for. This has been a very frequent occurrence with traders, especially with Bitcoin; sometimes you just have to say that profit is profit and today might not be the day you become a crypto millionaire.
Why is this?
Well Bitcoin has some huge price swings sometimes, especially on certain exchanges. When these swings occur, it will probably bounce back in the same amount of time, however, the first negative bounce may be big enough for your entire margin position to be closed.
Don’t invest more than you can afford to lose
When this margin balance is closed, you lose the entire investment you started out with; with Bitcoin especially it’s very important that you keep the idea of “Don’t invest more than you can afford to lose”, in your mind. This is essential because it is very much so better to be safe than sorry. Of course this doesn’t mean that you should take risks some time; sometimes you should just go out on a limb and take a risk and say yeah I believe that this price will happen in this amount of time.
But in the markets, there are always monkey wrenches that are thrown in, and good investors and traders keep this at the back of their mind at all times. Otherwise you could be seen as being naive and this could cost your wallets additionally if you fail to recognize that sometimes the markets are not going to be in your favor.
One of Bitcoin’s huge advantages over other payment methods is its ability to become somewhat anonymous, if the proper precautions are taken in maintaining your personal security, Bitcoin can be regarded as being anonymous.
Why is this, and why is it so important in today’s world?
Well, many are fearful of what happens when you centralize your currency and centralize markets in today’s world. It’s common, and not misunderstood. People care about their security, without a doubt. People are scared of credit card fraud, they’re scared of losing their whole lives savings in a matter of seconds due to hackers, and they’re scared of what happens when someone looks at their pin code when utilizing an ATM machine.
Bitcoin offers a safe haven for those are scared of making publicly recognized transactions. Maybe you don’t want a payment showing up on your bank statement, maybe you don’t want the public banks to recognize and show a certain thing you bought at a store or online. Bitcoin offers the remedy for this. It offers a revolutionary option for those who are concerned with online and monetary anonymity.
How anonymous is Bitcoin actually?
Bitcoin anonymity offers a limited availability however. You need certain precautions before you can assure that your anonymity is secured and not being monitored by others, but basic anonymity is definitely an option with Bitcoin. Thousands have flocked to Bitcoin for just the basic anonymity of payments. It allows you to make payments you might simply not want available to those in government positions and such.
Anonymity is essential in today’s world, and it’s not bad because you want secure and anonymous payments. Bitcoin offers this solution, and by obtaining a simple Bitcoin paper wallet, you ensure your anonymity to a certain extent. I’m not saying that the transaction is gone forever and lost in the blockchain and undetectable, but I’m saying for basic security purposes, Bitcoin is the perfect answer to just making private payments that are your own to manage.
Bitcoin Bears vs Bulls
In the financial markets world lots of times you’ll hear the phrases of Bulls and Bears.
This is usually in reference to Wall Street and opinions on the market if you’re unaware, and they are commonly referenced when speaking in terms of Bitcoin now as well. Since Bitcoin is an upcoming currency that is not yet officially recognized by the financial sectors that are official such as the SEC, and so on there is a somewhat negative connotation about its growth.
If you believe that Bitcoin is a bubble, that it is just a fad, and that the price will go down undoubtedly, you will be referenced to as being a Bitcoin Bear. Bears are usually investors of people who believe certain prices are going downward rather than upward and are usually falling over long periods of time. These people also believe that certain beliefs are just waves of interest, or they are just phases and Bubbles. Bulls, on the other hand are people are who believe that prices are going positively in an upward price action. Bulls are people who believe positively and enforce positivity in the markets and are generally expecting price levels and price action to increase.
Bitcoin Bulls and Bears
This applies just the same way for Bitcoin. Bitcoin Bulls are people who believe in its power and people who believe the price will steadily increase over the next few years. You will generally hear these two terms being used coordinately with one another as they are parallel. When price action is looking to be increasing over a period of time (Let’s say for 1 week price is steady increasing), this is said to be in a bullish phase. However, when the market is looking at steadily decreasing price action, this is generally the sign of a bearish phase.
You’ll hear these two terms used very often in the financial world.
Bitcoin has risen above $4000 in 2017
The recent bullish run that Bitcoin has had in 2017 has been incredible to watch, especially if you’re a real time cryptocurrency investor.
Increase in value
Since the beginning of the year, the crypto has launched into quadruple its starting value at the start of the year. Marketcap has increased to surpass 50 Billion, and extremely high value investors are looking to Bitcoin for future unit of account.
What started as somewhat of a technological fad has grown and morphed into a huge investment opportunity for many investors, especially those who are serious about investing in long term options that can be the start of a technological revolution.
What fuelled this run exactly?
It’s unclear at this point since the storm is actually still brewing, but many believe it to be the implementation and activation of Segregated Witness into the blockchain. What this means is faster Bitcoin transactions and therefore faster payments. The recent bull run has shown that Bitcoin at this point isn’t a bubble, and should be taken seriously by investors of all types. The recent increase in price can be put on multiple factors; however, first and foremost it should be a clear signal to all that this cryptocurrency is a way of the future and will revolutionize the way that we make payments within the future.
In a generation that is completely filled with technology and ever growing technological advancements, cryptocurrencies fit perfectly into place. It’s no wonder that steeply climbing price at this point isn’t showing many signs at slowing down considering that the currency has been adapted in multiple Asian countries and has become a very high profile target for huge investment agencies such as Goldman Sachs and Wells Fargo who have recently invested millions into the further research of blockchain technology.
We can definitely see further advancements in its technology within the future.
How to Access Faster Bitcoin Transaction Speeds
A large problem for many new investors mainly and for new users of Bitcoin in using payment systems that vary from online marketplaces to in real life stores is the speed of transaction.
Concern about transaction speed Bitcoins
Many people are concerned at the speed at which these transactions take to confirm on the blockchain network, and some are concerned in their wait time as sometimes it may reach up to days for a transaction to confirm. There is a very widely unknown trick however, as you can use Bitcoin transaction accelerator to ease transactions and make them confirm on the blockchain network faster than originally intended to do. There are some restrictions however; I know many users who try to use Bitcoin as forms of payment online find that they are waiting a little while for these transactions to speed up. Confirmation times have been increasingly climbing in terms of waiting time which is definitely no surprise. With the ever increasing demand for Bitcoins and their usage, especially their recent public adaptation, the Blockchain is definitely bound to be backed up for some time.
Processing time Bitcoins
Blockchain.info contains a great tool used for making these transactions faster however. Located on their site, hover over to transaction accelerator and there is an area where the user can enter their transaction ID.
On many exchanges, the transaction ID is located under the confirmation details and in the area where you can check where on the blockchain it is located. Copy and paste this txID and then the transaction should be confirming within a couple of hours. This is proven to help backed up transactions that have been stuck in the blockchain for a while. This transaction accelerator helps to confirm transactions on the blockchain through ViaBTC’s mining pool.
This way your transactions can be confirmed and proven much faster than without it.
Bitcoin’s Ability to Bounce Back
Turning on the financial news now a days, you can almost guarantee that there’s some headlining news arrival that involves Bitcoin.
Big attention Bitcoins
Bitcoin in recent years has garnered large amounts of attention for multiple reasons. There’s lots of things brewing in the cryptocurrency world, whether it’s faster transaction speeds, the ability to anonymously make payments, and so on; the list seemingly never ends. This has without a doubt garnered attention from investors as well. Investors and major hedge funds have begun looking at Bitcoin because of its ability to bounce back from huge losses and percentage cutters.
A quick look at Bitcoin’s overall YTD chart and you can immediately tell that Bitcoin is unlike any other securities to which is has recently been compared. Bitcoin has taken losses of nearly 50% at a time and has found the momentum to bounce back from these losses in huge ways. From attaining public status and attention from financial moguls, Bitcoin keeps bouncing back from price drops. Take for instance, last year when Bitcoin was in the 900s range. This was the first big drop when Bitcoin dropped to nearly 600, over 30% decrease in a mere 3 days. This shocked everyone, and people began to doubt Bitcoin’s value. Within 24 hours however, price steadily increased back to its original price and beyond. This seemed to be the first instance.
Recovery Bitcoin after relapse
The next big recovery was during last March during the time period when the Winklevoss asked the SEC to open a Bitcoin trust. After the trust was denied, price dropped. Within a week however, Bitcoin hit new highs after positive news of an appeal of the decline was released. Looking at every recent drop in price that ranges from huge numbers such as 30-50%.
Bitcoin has been able to steadily increase back to new highs each and every time, which amazes investors and consumers alike.
The Winklevoss Twins and Bitcoin
If you’re a longtime Bitcoin investor, then you more than likely have heard of the Winkelvoss twins; however, if you’re an avid Facebook user or have looked into the history of Facebook before, you will for sure have heard of the Winklevoss twins.
Facebook and Bitcoins
The Winklevoss twins were involved in a lawsuit in the mid-2000s that claimed Mark Zuckerberg, the owner and creator of Facebook stole the idea of Facebook from them and did not give them any recognition. The twins took Zuckerberg to court and reached a conclusion with a cash settlement nowhere near Facebook’s value. The twins didn’t take this to heart however; they decided to focus their attention on currencies and attaining a popular decentralized currency that was anonymouslyand securely avid.
Their find? Bitcoin!
The Winklevoss Twins then decided to focus their entire funds and investments into the development and progress of Bitcoin. With both of their large power in the financial world, they were able to become one of the main heads of Bitcoin. Some have even labeled them as the God fathers of Bitcoin. The Winklevoss Twins created their own Bitcoin exchange with over 100,000 members, which is Gemini, widely used in the crypto world.
So what does this have to do with anything?
Well the twins applied Bitcoin as an ETF to the SEC, which would be a huge step in the positive direction for Bitcoin. The ETF was originally denied, which dropped Bitcoin’s price over 30%; however the SEC announced that the denial would be reviewed, and appeal process was put into place. With many countries adapting crypto legalization, this now seems like a much more likely event.
The Winklevoss twins have also claimed to own more than 1% of all Bitcoins in circulation; an outstanding number which resulted in them being able to open such a successful exchange.
Why Bitcoin is so Attractive to Criminals
Bitcoin runs on extremely advanced technology, that’s without a no brainer. There’s much to be discovered in the crypto world that has not been uncovered yet, including its true potential in the public world.
Bitcoins and underground world
However, in the underground world, Bitcoin has been thoroughly discovered. So why is Bitcoin so attractive to criminals, as many people seem to biasedly believe? The answer lies in multiple factors. For one, Bitcoin runs on blockchain technology which allows for, if taken the correct steps, anonymity to take place. This allows many people to make transactions that can’t be detailed by the government or law enforcements, at least on the outer edge. It takes police and law enforcement agencies a lot of technology, warrants, and in depth analysis to be able to prove in a court of law that a purchase was made by a specific person through Bitcoin. This allows many people, who are doing either shady, or maybe even non-shady things, to hide their transactions and real purchases.
The importance of Bitcoin
Although, I don’t agree that this is the main reason at all behind the importance and value of Bitcoin, many people who aren’t very knowledgeable in the subject tend to jump to these similar conclusions about Bitcoin. Bitcoin allows for anonymous purchases and reasonable doubt to come into play for committing crimes online. These are factors that are attractive to criminal, factually. Also, Bitcoin has previously been used to launder money. Since it’s so advanced in technology at the moment, there’s not a lot of room to monitor these “Secret” transactions.
However, in essence, this can be why they are so attractive to those who are trying to complete secret transactions. Although it has this “sketchy” connotation, many people have since adapted to it to have a simply technologically advanced vibe to it, rather than this negative “criminal” vibe. However, with this advancement in technology, it isn’t hard to understand why it is so attractive to those in the underground world.
Public Figures Backing Bitcoin
Any internet or computer enthusiast who occasionally turns on the news to check out financial reports and technological settings is no stranger to seeing that Bitcoin has taken up the public spot since its beginning of public adaptation.
Starting with Bitcoins
Many people have begun to back Bitcoin for various reasons. Since its technology has been discovered as being advanced and superior to that of some of the most advanced banking systems and transferring platforms, many public figures have begun to explain their support of Bitcoin and its future.
Janet Yellen and Bitcoins
One of the biggest and first examples of the public backing Bitcoin with political influence was Janet Yellen, chair of the Fed Reserve. When Janet Yellen first heard of the blockchain technology, it is rumored that she hired a group of programmers and computer scientists to explain it to her. After this meeting, Janet Yellen invested millions into further research and development in the technology in a funding project that aimed at progressing financial systems to levels they have not been able to reach yet. After news of this, Bitcoin price obviously jumped; with Janet Yellen backing the crypto currency, this was probably one of the biggest leaps in progress to adopt Bitcoin to the general public. Janet Yellen saw the opportunity that Bitcoin and the blockchain technology possessed and continued to back it.
After Janet Yellen
After her, many other followed. Some of these figures include Bill Gates, tech mogul who stated Bitcoin is not stoppable. That it would continue to grow to unprecedented amounts and capability in a short period of time with this upcoming digital age. John MacAfee claimed that Bitcoin had tons of room for serious growth including up to what he believed to be $500,000 value of one coin.
These public figures have furthered Bitcoin’s adoption to general public using it, which has been major.
Kim Dotcom’s Wild Bitcoin Prediction That Ended up Being True
Back in mid-2016 Bitcoin prices were beginning to hit areas of the hundreds amount; 300-500 around there, and showed that there was some potential in the upcoming technology.
Volatility of Bitcoin
People were cautious about it since it showed previous extreme volatility and had proven to fall in value very rapidly before. This had scared big time investors, however one man made a bold prediction in its price action.
That person was Kim Dotcom, the man arrested and charged with piracy accusations for development and running of “MegaUpload”, a cloud sharing platform that showed importance in emphasizing decentralization. Bitcoin, to him, was a gateway into further decentralization and freedom amongst making financial payments.
It was possibly the future into making some major payments in a free economy, or what he believed to be a free economy. Kim emphasized that Bitcoin was going to be worth more than $1000 by the end of a 1 year mark. Many people laughed and wrote it off as accusations of being crazy. Fast forward to less than a year forward, and Bitcoin reached its previously attained thousand dollar price mark. This proved to be a bold movement in price prediction.
It led the way for future confidence in making Bitcoin’s price predictions, which has since been attained by major banks and investment firms that release these predictions to their clients such as Goldman Sachs, Wells Fargo, and future banks that adopted Bitcoin as important things to watch for in the future. Kim Dotcoms price prediction proved to be more than 4x fold correct.
Bitcoin, in the time period of his prediction reached levels of up to $3000 dollars, more than his price prediction even could imagine. Since then, watching this real time investors have begun to fear Bitcoin and its ability to be a major investment opportunity for common investors.
The Bitcoin Scandal with Silkroad
Bitcoin possesses a major “black market” connotation due to the involvement of it being the main currency used to make secret payments through the Silk Road, the platform used to purchase drugs and other illegal items.
Power of Bitcoin in Underworld
When the federal law enforcement agencies heard wind of this, they began to be extremely fearful of this since it proved to be a powerful currency that adapted extreme power, not even they could currently control.
Fast forward a couple months after Silk Road’s adoption to the public and there were methods that not even advanced computer scientists could crack in terms of attaining the profits gained through the website. People were fearful, and the FBI launched a global investigation to take down the alleged marketplace. There was widespread actions taken to capture the people behind the marketplace and eventually their greed caught up to them, leading to their arrest.
Fraud by agents
However, when the people were caught, law enforcement agents who got close to the Bitcoin wallets that were associated with the criminals took liberties to transfer payments to their own wallets. Millions of dollars worth of funds (Today worth billions), disappeared out of thin air. 2 agents, were solely convicted for stealing these funds. The thought alone, however left thousands in shock. If law enforcement agents thought they were above the technology in the current world through utilizing Bitcoin, imagine what the general public would assume to believe? It proved Bitcoin’s technological superiority and showed it truly could not be stopped. The case was further investigated and showed that millions of dollars worth of extra funds went missing during the case to take down these criminals.
There was tons of money missing, which only led to one assumption; crooked cops took the liberty of smuggling these funds and turned into one of the biggest controversies of the modern technological world. Bitcoin attained technological legendary status after this case.
Bitcoin Faucets - Methods of Attaining Free Bitcoin
There are many scams on the internet and life, alike, that state they are easy ways of getting free Bitcoin.
Faucets are a dated take on this however, as they actively assist in giving away Bitcoin to the public in exchange for advertisement revenue, or simply public knowledge of certain figures. In essence, this is key in Bitcoin becoming great for public adoption. Bitcoin is focused on being huge in terms of public purchases, acquisitions,and so on. There’s much controversy on what it will become in the future, but faucets are mutually beneficial ways of giving Bitcoin for free. Faucets give away fractions of Bitcoin in exchange for revenue gained off of the website. Although they are not viable ways of gaining serious gains off of the currency, they are definitely a great way of getting your hands on some Bitcoin if you’re interested in it and how it works.
How to get free Bitcoins?
Visiting faucets is very easy to do, and all that’s required is an active Bitcoin wallet address that you can send and receive payments from. Once this is activated, all that’s required is you pasting your active address into the sections asked. You’ll only receive very small portions but this is great for spreading awareness on the currency.
Trust in Bitcoin grows
Faucets are great to spread awareness basically. Showing them to your friends and family will allow them to freely use Bitcoin and make some small transactions to understand how Bitcoin works and to get a taste of how the process goes when using Bitcoin for transactions.
Faucets are not new to the crypto scene; they’ve been around for many years but they have continued to stay as viable ways of giving away the currency for public adoption. This is great if you’re a user and avid Bitcoin supporter who wants the public adoption phase to continue at rapid rates.
Bitcoin As a Payment in Japan
Bitcoin prices have been jumping in recent months, that’s a definite that many people have since been understanding. The reasoning behind these huge advancements however is unknown to many in the crypto scene.
Japan into Bitcoins
Without a doubt, it has to due with Japan’s recent inclusion of Bitcoin into the legal payment system. There’s since been a huge increase in the amount of people that have been including Bitcoin as active payment methods in Japan; imagine paying for your food, your laundry, or a simple candy bar at a store straight with Bitcoin. This advancement is a wonder to many, but it is a great way for people to start learning and using Bitcoin.
Volatility in Crypto World by Japan
Japan has been a huge reason why prices are jumping in the crypto world because it’s day by day increasing in availability and as a method of payment in Asia. It’s not uncommon these days in Asia to see signs that say “Bitcoin Accepted Here”, which is still a slow moving process in the United States. These advancements are day by day becoming greater in Japan and Asian countries alike. This is becoming known as the public adoption phase.
Payments with Bitcoin is reality now
What this means essentially is that Bitcoin is slowly becoming adopted to the public as a form of payment. People are finally being able to use Bitcoin in everyday life rather than just online forms of payment. Many internet businesses have been accepting Bitcoin, but Japan’s government specifically allowed Bitcoin to become accepted as a legal payment method at stores and such.
This is revolutionary as it truly shows the importance and acceptance of Bitcoin as a monetary unit and store of value in the Asian economy. In every single form of payment and monetary unit that existed, this is the beginning of its worldwide adoption and usage. Many don’t understand that by simply legally accepting Bitcoin at stores and as a form of payment, its usage and price action will increase ten fold just by this simple fact.
Bitcoin Cash - A True “Bitcoin” or is it an Alt?
If you’ve been watching the news and paying attention to Bitcoin price action in recent weeks (August and July), you without a doubt have heard of the supposed hard fork that occurred in early August.
What exactly happened?
Did Bitcoin split in two? Is the currency now 2 forces that are completely different? Yes and no. The answer is a complicated one, that’s without a doubt, but one that can definitely be understood in time. What happened essentially, in everyday terms is that the currency split, one side split off of the other. The coin that split off was named “Bitcoin Cash”, while the main coin remained “Bitcoin”. Bitcoin cash was thought to be the future of crypto currency, at least within the first moments of its release. Price action in Bitcoin cash spiked in its futures, and especially the first moments of its release. It briefly reached periods of huge increase which were over 400% of its first values, which would top Bitcoin’s!
Not really. Moments later, Bitcoin Cash started to tumble back down losing over 30% on its first day of release. People thought it to be just a rough start, but then the loss of percentage continued over the next few days, and has since continued until mid-August. Bitcoin Cash has since been regarded as an Alt-Coin in its inability to properly compete, or work in combination with Bitcoin.
Although Bitcoin Cash does offer some technical advancements over the regular Bitcoin, it isn’t advanced as some might see; it has been regarded as a “Whale” opportunity by some recent purchasers, however, that is all up for personal opinion. The recent argument is whether or not Bitcoin Cash is a true split of Bitcoin, or is it just another Alt Coin like Ripple, Dash, or Ethereum.
The Bitcoin Fork - August 1 Why it Caused Panic and then Immediate Prosperity
August 1 marked the day of some serious concern for Bitcoin investors, traders, and simple users alike.
Split in Blockchain
The Blockchain was believed to create some huge splits that would then lead to huge declines in Bitcoin price. Many feared what would occur because of this split so many panic sold, a common investment phenomenon that leads to rapid price drop. Early in July, we saw Bitcoin price reach lows of $1800, nearly 50% decline in overall price action in less than a week. It definitely spooked some people, but once the negativity that surrounded August 1 and the Bitcoin split, Bitcoin reached some huge prosperity.
Bitcoin after splitting
Fears of Bitcoin’s split finally started to wear off when its “split” Bitcoin Cash began to tumble in price value. Many thought that Bitcoin Cash would become its alter competitor and would surpass it in terms of price and value. When the fear finally wore off, Bitcoin prospered in price action. It increased ten fold, because the fear that occurred finally went away and people realized that the split wasn’t anything major to fear, at least right now. The brief panic that accompanied its value also disappeared.
Strong growth after splitting
Bitcoin then managed to reach new all-time highs over 5 times in the period of 3 days. It increased over 50% in less than 2 weeks, and reached its 4 fold value on the year to date. This was revolutionary and meant that Bitcoin was here to stay. We saw the fear, and we saw the recovery, something that Bitcoin is not unfamiliar with.
Once again, the fear of the fork led to its price drop and then immediate price recovery. Bitcoin once again showed that it could bounce back from serious fear in the markets. The Bitcoin Fork was regarded by many as being seriously fearful events, but led to just the opposite when it showed its strength through market fear.
To What Extent Are Your Bitcoin Payments Anonymous?
With the idea that Bitcoin payments and transactions are anonymous, it can be a common question to ask, to what extent are these payments truly “anonymous” and what can I expect to show up when looking at my previous transactions. The answer is not simple, but definitely obtainable.
Bitcoin anonymity really depends on the extents to which you’re able to make it anonymous. Bitcoin is an online cryptocurrency, which makes it very different from banking and using withdrawal systems that are available in public banking systems today. Bitcoin offers a large room for making sure your security, identity, and anonymity is all in tact when making online payments. Its more secure and anonymous than most monetary systems available in the United States, but to what extent?
You decide how anonymous you want to be
It is up to the user. This is what makes Bitcoin so sought after, because the option for anonymity and security in your payment really depends on your own input. Yes Bitcoin is a great option for making payments and such but it is really up to you to make this happen and ensure anonymity. Proper precautions should always be taken when making online payments with Bitcoin especially if you want your identity to remain unbeknownst to the public. Looking up proper precautions to undertake for anonymity are perfectly legal and should be on the agenda of all those looking to secure their identity with online payment systems.
They are great options for payments but the idea that they are completely foolproof is wrong. Proper precautions should always be taken by everyday users of the payment. You can’t simply become anonymous with the click of a few buttons, you must ensure this with your own actions. Nobody can simply click a few buttons and become invincible. Always make sure you take the right procedures to keep safety and security at the forefront of your priorities.
Bitcoin and the Taxation Scene
Taxation can obviously serve as a barrier for many people who are profiting majorly off of the Bitcoin and crypto scene as of right now.
There’s lots in the way of liquefying and making funds available for your Bitcoins, but the area in terms of that is very gray as of right now at least. Depending on what sort of transaction and method of making the funds available for yourself, putting Bitcoin gains on your taxing for certain purposes really depends on the type of gain that you make to attain that profit. Bitcoin profits really depend on the type of transactions that are undergone to attain this profit or loss.
Make a profit with Bitcoins
Of course, profits will not count in terms of representing certain profits on your taxing purposes, but gains and profits are required. Whether or not you’re cashing out really depends on the further procedures that will need to be underwent.
Of course if you are holding onto Bitcoin during certain taxing periods, you need not to worry about further actions that need to be taken. Cashing out or profiting on these however is really where the worry comes into play.
Payment of Bitcoins
If you have cashed out on your Bitcoin you should discuss your further actions through a series of accountants or possibly a series of financial advisors. They have a better understanding of how the taxing procedure works, and although it is not even that in-depthly regarded and regulated by agencies such as the SEC, it is still highly advised to consult with advisors or certain people about your profits.
Taxing will not be huge, but will definitely be needed if you don’t want a certain agency or company contacting you and taken more funds than needed originally. Hopefully these uncertain areas are clarified within the near future however, because many are asking questions of how to proceed.
How Do You Obtain Bitcoin with a Debit Card?
Obtaining Bitcoin is obviously a lot harder than one might expect when you first get settled in the crypto scene.
There’s definitely many obstacles that come in the way when you’re trying to just get your hands on some simple Cryptos, however, many exchanges and companies have attempted to ease the process of just buying and getting a hold on some crypto currencies. These companies have ranged and differed from companies.
Bitdenex have all made it somewhat easy to attain Bitcoin with just your debit card. However, there are some catches involved. Most exchanges and distributing platforms require that before you get access to these keys and Bitcoin, that you provide identification verification; this may vary from uploading pictures of your ID, driver’s license, and so on.
There are different procedures needed to undergo before you get complete access to debit card buyable Bitcoin. In addition to these verifications, you might also need to include your home address, current state of residence, and so on, this is all assuming you reside in the United States. Obtaining Bitcoin with a Debit Card is somewhat easy, as long as you’re not looking to purchase these without verification or without a sole purpose that is other than to make perfectly legal and viewable purchases.
Easily make purchases with Bitcoins
Debit Card purchases with Bitcoin are also easier than they might seem at first look. This is for multiple reasons, one of the main reasons being because by providing your Debit Card information you’re basically verifying that you’re not using Bitcoin for any illegal or shady activity, at least initially. Exchanges can then easily verify that your identity and make sure this is the correct purchases that is making the specified purchase.
Debit Card purchases are somewhat accessible by nearly all who have Debit Cards as long as one has certain items that can backup and verify purchases or identity.
Is Bitcoin a Get Rich Quick Asset?
There’s a famous saying that states, “It takes money to make money”, and especially in the case of Bitcoin this is very true.
Bitcoin is profitable
Bitcoin has proven to be one of the most profitable and quickly liquefiable assets in the history of investment and the financial world. With all of this being said, it’s important to note that without money, you can’t make money. Let’s take for example the fact that Bitcoin has risen 30% in the last 2 weeks as of writing this currently. This a very impressive number, but we have to take into consideration the fact that 30% of a number is not an instant get rich quick scheme.
Price movements Bitcoin
Also, Bitcoin has some extreme volatile periods in its price movement, so to assume that it’s going to be a straight up positively sloped line is naive and will get you to lose money if you’re not holding for longer periods of time. Investment wise, Bitcoin is a safehaven. At least at this point so far in our history, Bitcoin has shown positive growth that outnumbers any sort of digital asset or commodity that has ever existed at unprecedented rates.
I’m not saying you should dump your life savings into Bitcoin, but it’s been more promising and better in terms of rates of return than Gold has in its entire existence. There’s been an incredible amount of growth that has since been slowly stabilizing. Short sellers have been wiped out of their positions, so this means Bitcoin has shown a very bullish connotation. 30% of $100 is $30. Good right? Well take 30% of $1000. That’s $300. Even better. But 30% of $10000? That’s nearly $3000.
Bitcoin has made a lot of people rich in the past months. It has increased nearly four fold since its year beginning and has shown some incredible movements in terms of positive price action. If it seems too good to be true then it probably is, but with Bitcoin some people have literally turned that into a reality.
Bitcoin Mining - How to Get Started
Bitcoin mining started off as an incredible hobby that turned out to be a million dollar profit making procedure. People from all over the country flocked to these new methods of obtaining power and electricity to be able to mine Bitcoin blocks.
Bitcoin Mining Method
This is partly due to the fact that it would yield very high amounts of return in the long run, but also due to the fact that with enough power, there’s essentially a very large profit-to liability margin involved. Take for example, the fact that some people own offices that they generally pay low rates of electricity to run. There’s large room for computers that would be set up to mine Bitcoins essentially. There’s lots of things that go into this, involving lots of liabilities but if you can mine more than you spend, you’re essentially creating Bitcoin that goes straight into your wallet.
Procedures for Bitcoin mining
Certain mining procedures also take a lot of time. These miners, which are typically large computers and powerfully created with integrated processors specifically designed to mine Bitcoin, may cost you a lot when running your electricity to it. These things can be pivotal in ensuring that you profit from Bitcoin mining and don’t just end up being in massive debt due to unplanned expenses. From a regular user perspective, mining can be more in depth than it might appear. Learning terminology involving mining and learning the actual mining process is an entire different monster from actually just purchasing and using Bitcoin.
The things that must be undergone to attain Bitcoin from mining and not just buying it is a different process and generally should just be furthered research before dumping your entire life savings on a mining setup that runs off of continuous electricity. Be sure to also learn the basics of Bitcoin and compute electricity costs for further confirmation.
What Phase is Bitcoin in Relation to Society?
Bitcoin has been referenced in many futuristic-associated articles and that sort of concept in terms of popular media and popular culture.
Phases of Bitcoin
There’s many types of adoption phases that a certain phenomenon must go through in order to obtain the status of being truly revolutionary and implementary in everyday society. Bitcoin is definitely not far behind in terms of becoming an extremely long lasting investment that could truly revolutionize the way that payments are made. However, if we truly look at society and its feelings towards Bitcoin, we can grasp a better understanding of where the crypto is in terms of being publicly adapted into society.
Uncertainty about Bitcoin
Many people are still wondering what it truly is. If you ask any person in today’s complex technological society what Bitcoin is, the majority is confused. They don’t get it; they think it’s internet money, and that’s it. Although this is true, there’s much more to it, and much more that could become important in order to become useful in today’s society. With an extremely high volatile price action, and an apparent bullish run over the last 33 months, we can safely say that Bitcoin is currently in the public adoption phase of becoming a technological asset in society. What this means, is that Bitcoin isn’t secured in our everyday lives.
Bitcoin acceptance in society
We still have a lot of growing to do and teaching to do to those who are unfamiliar with its capabilities, meaning it is in the process of being accepted into our society. This means multiple things, mainly, that in most people’s’ opinions, it is not too late to invest in Bitcoin.
The world is finally waking up to Bitcoin and understanding its power, and slowly but surely coming to understand that the cryptocurrency is here to stay, and has extreme power that most don’t even understand yet.
SegWit Locked In
If you’ve been lurking the recent Bitcoin news you’re probably familiar with the new SegWit term that has been recently activated in the blockchain network.
Segwit and Blockchain
First, you have to look at the fact and information that is associated with the blockchain network. Blockchain transactions can only be activated up to a certain amount of block size which is what basically determines the transaction speeds and confirmation times that are usually associated with Bitcoin and the other cryptocurrencies that run off of the blockchain.
When using Bitcoin as a payment system it must confirm amongst different blocks, and these blocks are certain sizes of megabytes. These megabytes differ from different blockchains. If you’ve been looking around certain forums and such and looked at the news you’ve probably heard about the recent “Seg Wit” that has locked in.
What does that mean?
Segwit will allow for faster and bigger transactions to be handled in a less amount of time. The recent segwith, which stands for segregated witness will lock in anytime within the next month; this is because miners have reached a certain block space that was mined. This confirms that Segregated witness will be enabled. We saw this recent Segregated Witness implemented into Litecoin and its development. With Segwit implemented into Litecoin we saw a realtime incredible increase in overall transaction and confirmation speed that occurred globally. The same can be said for Bitcoin when Segwit activates, which can be anytime from now into a couple of months.
Consequently, you can definitely expect a huge price jump when this occurs. Segwit has also been a very frequently brought up topic in the past with Bitcoin, as without it investors were very hesitant to invest. Now that it is confirmed to be implemented we can see huge increases in price in the near future if everything goes smoothly.
Where To Use Bitcoin?
Although a seemingly “future currency”, it may be a bit deceiving when you actually look at where and at how many locations Bitcoin is actually accepted. The amount of places that publicly accept Bitcoin is relatively low in person.
The Netherlands and Bitcoins
In the Netherlands it is not yet considered a regulated currency, so you most likely can’t spend it in stores or such; and if you do it is very rare to find, however many online businesses and platforms are starting to incorporate Bitcoin into their payment systems as they are truly realizing the positives of owning it and using it. There are many positives that go along with it, and there’s a very big chance that the public starts to adapt Bitcoin at public places soon as well.
Other countries and Bitcoins
We can infer this just by looking at other places that have also undertake this sort of mindset. For example, take a look at Japan; an established country that regulated the currency and now has ease of access to certain payments that otherwise would not be available. The demand for Bitcoin in Japan has begun to jump recently as well; people realize that it’s important, easy, fast, and powerful and therefore beginning to adapt to it. This initiates a very big step in the right direction for Bitcoin. However, many online services such as Amazon have begun to allow Bitcoin payments. Also, you can filter searches for certain products through Bitcoin payments on Google.
Other parties accepting Bitcoins
Freelancers and clients have also begun to do business through Bitcoin payments as it poses as a good services of escrow if done correctly. Bitcoin can also be used for anonymous purchases and security and privacy will not be an issue. There are many shops online that also accept Bitcoin.
In a sense, many people have believed Bitcoin to be a growing currency, so it’s almost like money that pays for itself. Of course this is somewhat exaggerated, but it’s a great alternative if you’re looking for an investment and payment system combination.
Buying Bitcoin in Person
Many people however, are scared of certain hackers getting into their information, or just simply are scared and worry for their privacy.
Physical Bitcoins and Bitcoin ATM
So another option and measure that can be undertaken to obtain Bitcoin in your wallet is to purchase Bitcoin physically in person. There are a numerous different ways to proceed about doing this, but one of the biggest and most common ways is to access a Bitcoin ATM. These are actively found at certain locations that can be found online and located through an ATM locator that are available on certain websites and can be found by going there. They are fairly simple to use and don’t require a very large amount of effort. There are some downsides to these methods of obtaining Bitcoin though. Transaction fees at ATM’s are typically extremely expensive. Usually ATM’s will allow you to access your wallet address nearly instantly however, so that is also a very nice feature that is added. The fees associated with using these ATM’s can range from 5-10% so they are usually pretty hefty.
P2P Websites for Bitcoins
You can also utilize P2P sites such as Local Bitcoins which allows you to meet up with someone and purchase their Bitcoins in person. These purchases are usually set up in public areas and usually go relatively smoothly. While in some cases they may see somewhat sketchy and unorthodox, the process can be very convenient especially if you want instant Bitcoin and don’t want to go through the hassle of identification processes and all of the other verifications required to set up a working wallet. This is usually gone through if you’d like to buy them anonymously to further ensure that your privacy and such are very well protected in the event of a purchase.
Keeping them and holding onto them can be annoying, however, it will pay off in the long run by going the extra mile. Also, they’re instant!
Bitcoin is Set in Stone
Unlike other transactions and holdings where chargebacks can be inferred for irresponsible reasons, Bitcoin is truly set in stone.
Once you send Bitcoin to another wallet address, it is truly out there on the Blockchain and is set in stone. It’s gone forever, once it hasbeen sent and although this may seem scary, it is not as intimidating as it might seem. Copying and pasting wallet addresses is extremely easy, and according to analysts it is more common to mistype your Bank account number through a computer than it is to copy and paste a wallet address.
This makes the user bound to pay more attention to their transactions and ensure it’s going to the right place. This way chargebacks are literally impossible and a thing of the past with the introduction of Bitcoin. Once a contract is initiated on the blockchain (for a certain amount of Bitcoin in this scenario), it is immune to inflationary practices. Each Bitcoin transaction is a factor of an initiated contract and therefore it is much harder to mess up an order.
Additional security on shipment
In personal experience, I surprisingly don’t know a single person who has mistakenly sent Bitcoin to a different address than what they intended. Proof of work is a very important factor that was implemented into Bitcoin for the specific purpose of setting transactions in stone. Although this will indefinitely cause some anxiety about sending payments that are irreversible, if you take the right precautions and are careful about the addresses that you are sending your money too, this will definitely be a factor that is very easily used for its beneficial aid in the future.
These proof of work implementations are very cool introductions to the future of payments. With this computerized proof, we are able to verify that certain transactions are made in real time and are confirmed on both ends in real time as well. This will ensure reliability.
The Future of Digital Payments
With the introduction of such a seemingly complex and intimidating payment system, it can be scary to adapt to digital currencies, but the fact of the matter is that Bitcoin and cryptocurrencies as a whole is where the industry and technology acts are headed towards.
Future of digital money
This is our future right in front of us, and with each Bitcoin price boost we are witnessing history for the first time. Japan has recently regulated the online currency which, predictably boosted price action up to incredible highs. What was predicted to be a fluke of digital scammers by some, is finally being recognized as a respectable currency form that is as it has proven, is here to stay. Bitcoin is projected to be accepted on many payment systems, and is integrated with more and more systems each and every day. This is the future of payment, and Bitcoin is growing in its technological capability.
Bitcoin has multiple functions
Although it may be cryptic and hard to decipher how Bitcoin works and how it is created and given value, it doesn’t hurt to look into it, because as it has been proven, it’s not going anywhere. In its simplest form, Bitcoin is online digital money. It’s basically code that provides value to its user, and although it can be defined in a much more complex manner, this definition goes without saying it has many features that other currencies do not posses. With its recent regulation in some major countries, Bitcoin has become expanding its grips into huge territory.
It’s similar to the introduction of smart phones; when smart phones were introduced, old money was hesitant to adapt to it, but as progress went on with its development, old money literally had no choice but to accept that smartphones were here to stay, and once that was acknowledged, its usage was discovered by all. Bitcoin, is a parallel of that.
Incomparable Growth and Positive Increase
Some years ago, an internet mogul by the name of Kim Dotcom stated that within a year, Bitcoin would reach $1,000; many laughed at the thought, but then came to the harsh realization that Bitcoin reached not just one thousand, but an insane $3,000 within the time Kim Dotcom stated.
Powerful people and Bitcoin
People need to wake up and start realizing Bitcoin is the future. Cryptocurrency has literally received backing from some of the most powerful people in the entire world; from Janet Yellen, to Bill Gates, from the Federal Reserve, to multi-trillion dollar companies, Cryptocurrencies are being researched and enforced as it keeps on growing. It’s uncontrollable to an amount, and yet people are still hesitant to look into it, out of fear of change.
Bitcoin has shown positive growth months for the past 33 months. That is more than some of the biggest index funds on the stock market, some of the biggest markets in the world. The steady growth and resistance to negative news is truly incredible and something that is incomparable to anything we have seen in the overall market world of trading and asset holding. It’d be a lie to say that Bitcoin never struggles and takes a hit, however a common saying in the investing world is “It’s not about if something takes a loss, it’s what happens after said asset takes a loss”.
Bitcoin bounced back
Bitcoin has bounced back from each individual loss it has been hit with. This is what’s important about Bitcoin, and the main factor investors should start taking it seriously. It has broken through negative connotations countless times, and shows no signs of stopping. More and more investors have started looking into cryptocurrency investment and firms are starting to finally realize cryptocurrencies are the future of payment.
With this upcoming and positive news, there wouldn’t be a better time to hop on Bitcoin.
Why Exchanges Have Different Prices Comparatively?
If you have an app on your phone or a price watcher installed somewhere on your computer you may notice that there will be more than one Bitcoin price depending on the exchange that it runs off of.
Generally what this means is that although the Bitcoin price is relatively going to be stable within a certain number frame, different exchanges have very different volume rates going on at the same time which will make it difficult for its systems to keep up to date and stay accurate with the others. You can look at different exchanges and see that certain prices are very different from one another depending on the type of exchange they’re running from. If you look at Chinese market exchange for Bitcoin it will generally be much higher than that of one running in the United States.
This is because since Bitcoin is legal and a regulated currency in major Asian countries such as Japan. This means the opinion on Bitcoin there is very bullish and will therefore mean a majority of the buying demand that comes from Bitcoin is located in China, therefore increasing the Chinese exchange rate for Bitcoin. Since many of the countries in which Bitcoin is a regulated currency are positive about Bitcoin’s price action they consequently drive the price up. Their exchanges will usually have higher exchange rates. This allows for Bitcoin arbitrage that occurs. Also, many Bitcoin exchanges may have different rates comparatively; for example, Coinbase is usually at a different rate than Kraken or Bitdenex because they run off of different platforms and rely on different sources for their information.
If you see different exchanges have different prices, don’t be alarmed, because that is usually the main reason. This can mean a variety of things, not a bug on your end; users should be made aware of this because in most cases it will stop you from a panic sell.
Regarding Bitcoin Being a Bubble
There are many Bitcoin Bears who have stated in the past that Bitcoin is just a bubble that will eventually pop. However this is exactly what bears were saying when Bitcoin hit $1000. Then, when it was legalized as a regulated currency in Japan, they said the same thing.
At $2000 it hit another huge milestone and people screamed bubble again. People believed it would pop, however it did not. When Bitcoin was faced with the huge turmoil that involved the blockchain fork, people panic sold and price dropped nearly 40%; people were bearish and were extremely careful with their investments and how they handled them. However, Bitcoin bounced back and proved that it was here to stay. Now, at a currently extremely increased price people have still called Bitcoin a bubble that is going to pop soon. While people have literally became real time crypto-millionaires, there are still claims that Bitcoin is a bubble waiting to pop.
Looking factually, countries are adapting to Bitcoin and legalizing it as a valued currency. People are easily transacting business in new ways; a bubble needs to be popped, meaning things need to go very wrong. Bitcoin would have to be a fad in order for it be a bubble, and consequently so far it’s not a fad and it has shown incredible increase within the past year.
Bitocin a bubble!
A bubble needs to be a fraud, and Bitcoin has shown it is literally everything but that; it shows positive potential, and although it is entirely a personal opinion, Bitcoin being a bubble at this stage doesn’t look very likely.
This could be because of a variety of reasons, but one of the major reasons that it is believed not to be a bubble is the sole factor that Bitcoin has shown its strength as being a unit of account, a method of exchange, a storage currency, and much more. It has too many fronts to just be a fad.
Bitcoin and Tulip Mania
If we look back at history we can usually see repeating trends in terms of market actions and how they evolve through society and its norms.
This can vary from person to person, however, one of the biggest and most evident cases of market action that people refer to very often is the event of Tulip Mania that occurred in the Dutch economy a long time ago, approximately 400 years ago. What ended up happening was there was a major increase in the price of tulips that lasted about 3-5 months where prices literally boomed.
Get rich quick method
Investors and such flocked to it as it started to look like this huge way of getting rich quick; and just when it reached its peak, the bubble popped and thousands of Dutch people were left broke.
It’s still unclear the true reasons behind the Tulip Mania bubble, however in today’s world, many Bitcoin bears tend to refer to this event as the same as Bitcoin. If we compare the two, they’re very different however. Tulip Mania ended up being an insane event where tulips became the price of houses. They became extremely valuable and prices soared because of speculation and other technical specifications that can be further researched.
Bitcoin vs Tulip Mania
Bitcoin isn’t a tulip; it’s a currency that holds literally value and is used for real things and has the potential to change the monetary world. To compare it to Tulip Mania isn’t factually fair. Tulip Mania was a craze of investors and such that inflated Tulip prices in literal months and crashed in the resulting time. Bitcoin has shown progressive growth through a series of different level breaking barriers and has overcome serious problems.
Bitcoin is a belief in a decentralized currency that stands for fast and efficient payments that can ease the world of the separation we see in economies; not a flower with an inflated price.
Bitcoin as a Political Belief
Bitcoin has been regarded by many as a stance and a political statement because of its various incredible features.
For starters, it is a decentralized currency that allows for your own input; you are your own control and master of the money. There is no central force that is behind it and there is nothing that can control it and limit it. Although governments can create regulations and such, at the moment it is decentralized and is free to use; you can freely send and receive money to anyone, anywhere in the world for small transaction fees.
Essence of Bitcoin
This has led a political movement to spur in essence of Bitcoin and its reach for equality in an economic world. Those behind Bitcoin and those who are in charge of keeping it up to date and such are all behind a freely based economy, therefore creating its own political system stemming from a simple cryptocurrency. Bitcoin has birthed its own political movement by simply existing and will continue to do so. With the concept of a free world in mind, Bitcoin is slowly allowing a global economic system to emerge.
Through its usage of technology, it’s the first time that technology has truly infiltrated and helped to better money and the monetary system as a whole. For example, for years, technology has helped to advance many fronts except money. Yes, we have digital banking apps and digital balance checks, but a digital currency? That is the future. It’s a statement that says technology is the future and we can launch speed, efficiency, and wealth amongst all through this crypto currency.
Bitcoin stands for something much larger than internet money and can emerge as an entire political belief, one that states belief in the economic freedom of all and the importance in technological advancements in the modern era.
Bitcoin Volume and Marketcap
Bitcoin has an exponentially increasing volume and market cap that seems to almost never end.
The volume that has grown involves many investors finally purchasing and trading Bitcoin more than ever before and is associated with large investment firms and such that want to get their hands on the crypto currency. For example, the volume has increased from nearly 25 million to 50 million in less than a couple of months; than shortly after passing the 50 million market cap, the market cap surpassed 60 million, reaching incredible highs. This means not only that the market cap for Bitcoin is growing exponentially and faster than most companies at this point, it means that the large market cap promises some sort of price stability.
Bitcoin market cap
Although it does not guarantee anything, it is definitely promising to know that the market cap is nearing some of the biggest companies in the world. Recently, Bitcoin’s market cap surpassed that of PayPal, definitely a major competitor of it in terms of payment processing. PayPal offers great online payment systems but there are major flaws that Bitcoin promises to improve upon. PayPal also took nearly years to achieve that market cap, while Bitcoin’s market cap has attracted major investors much faster.
Bitcoin vs large companies
Bitcoin is on track to surpassing some of the major companies in the financial industry in terms of volume and market cap which is a great positive price indicator. Also, the large market cap also promises some sort of confidence in the fact that it will continue growth. The market cap is also growing rapidly. Just after reaching 50 million, it surpassed 60 million nearly a week later.
This shows that Bitcoin is important and people are noticing this; it’s not a fad that people are getting over in nearly a day or so, there is much more to it than that.
Helping Bitcoin Out in Terms of Growth
Like many things such as pollution, world hunger, and many things alike it can be common for a person to wonder, “How can I make a difference when I’m such a small fish in this huge pond of players?” Picking up trash on the street is a small convenience that won’t make a big difference in terms of pollution, but it will influence others to do the same. Then when others do the same, their friends will do the same.
One action such as this will create a chain reaction and lead to a positive and cleaner environment. Bitcoin is no different from this; in a world where one person’s usage can lead to others usage, spreading the word about Bitcoin and cryptocurrencies in terms of being a decentralized and great way to spread the news and help others to understand the importance of having a say in how your money is being handled. Essentially just talking to your family members and trying to convince them to find out how to use a Bitcoin wallet or send payments can be a great first step.
We are the new generation that will be reliable for maintaining the economic system and making sure that we’re free and under a righteous economy. We are the only ones who have the power to do that; by simply using Bitcoin as well you are helping its implementation into society. Spread the awareness and the benefits of Bitcoin with others and see how beneficial it can be for the both of you. Many exchanges offer certain specials if you recommend or refer another person to their exchange.
These deals are easy and can help you and another person get good amounts of free Bitcoin. Spreading the word can lead to some huge improvements in getting Bitcoin into the mainstream.
Making a Living Off of Bitcoin
Bitcoin is definitely a very profitable technological asset if you haven’t realized already.
Freedom by Bitcoin
Many people have been able to quit their jobs and live freely on vacation without any worries besides when to make dinner because of cryptocurrencies; this isn’t because they didn’t work for it though. It’s because they saw what Bitcoin stood for and continued to support it, buy it, and watch it grow into thousands and millions of dollars worth of profit.
So how is it possible to make a profit off of it now a days?
The most common answer to that question these days is to initiate a trading system in which you acquire profits off of trading Bitcoin. Yes, it is definitely possible to make profit and make a living off of Bitcoin, however, as most things if it seems too good to be true it probably is. That definitely applies here, especially in terms of trading.
Trading Bitcoin can definitely yield huge profits, but it is also very high risk and can lead to some turmoil and moments of anxiety when negative trades are made. If you are holding Bitcoin longterm and you feel that you are making great gains off of it, be sure to create a dollar cost average system so that you don’t lose money and you’re able to make money and not just have coins that you hold onto forever. If you’re willing to invest a lot of money in it and you truly believe in the technology, it’s possible to make some pretty large gains from Bitcoin.
There’s nothing guaranteed of course, however as many traders, tech moguls, public figures, and general investors have shown it is definitely possible to make a very profitable living off of Bitcoin. It is up top you though, and how much time effort and capital you’re willing to put into the process.
Bitcoin in Popular Culture
Bitcoin is a somewhat undiscovered and under researched concept in the regular world and the societal norms have not yet adjusted to what Bitcoin is, what it stands for, and so on.
Bitcoin a revolutionary asset
Bitcoin is truly a revolutionary asset that has yet to be really introduced into society, which was given it a very “foreign” sort of vibe in today’s popular culture. For example, there is a lot of misunderstanding around it. In popular culture every time someone brings it up and mentions it, whether it’s a TV show, movie or even a magazine it’s usually an explanation of it. People don’t really understand it, and that’s commonly understood in today’s society. People don’t know what it is, and they think that it is internet money that doesn’t exist.
Bitcoin – internet money
In essence, it is much more than that and is very much stronger and in depth than just internet money, however people still believe that to be so. If people were to research it more they would understand it is much more than that. Take for example, in an episode of Family Guy, a popular American TV show, the main character Peter claims that Bitcoin is the answer to the family’s financial problems but has literally no idea what it is. It is comedical obviously, but it holds true to how it parallels in real life. We truly don’t have that strong of an understanding of what Bitcoin is, at least in the societal norm-view.
As a society and as a culture, we have a lot of growing to do and a lot of understanding to come to terms with. Netflix has added a couple of Bitcoin-related specials which is great for public adaptation of it, but we can definitely do much better than that. We have to start teaching the public about it since so many are starting to undertake it, but don’t know what they’re doing with it.
Bitcoin as a Means of Money Laundering - Maybe Why it’s Frowned Upon
Bitcoin is definitely frowned upon by some of the higher ups, especially those who are in very powerful positions such as the taxation departments, the IRS, and so on, all of them really don’t have positive attitudes towards Bitcoin and what it stands for because a lot of them don’t understand what it is or what it does.
This can be a huge advantage for those who do know what it is and how it works. Bitcoin has recently been a means of money laundering from many criminals, for multiple reasons. Bitcoin is really easy to fake profits from. It’s just a known fact, and people have general of this; there’s no way to prove that a transaction through the blockchain was made for this specific purpose, it only shows the transaction, the time, date, amount, and factual information. It’s not like a bank where you can see where it came from, for what company, for what product, and so on.
Since there’s such a gray area in this aspect of Bitcoin, it is easy to fake funds and profits, therefore leading to criminals laundering through Bitcoin. This may be a reason why it is so negatively looked down upon in terms of the taxation society, because it can be used to launder money very easily. The IRS has had many cases where people have laundered money through Bitcoin but have come up short in further investigation because they simply couldn’t prove laundering purposes.
It’s the beauty of Bitcoin that it is decentralized, but can also be harmful as criminals can also utilize. This is the main argument that exists for regulation. Without regulation, it can be easy for criminals to utilize Bitcoin for other purposes than the main purpose, which is to make efficient transactions. Money laundering has been around for centuries, however, in terms of Bitcoin the game changed and law enforcement has noticed this.
What Drives Bitcoin Price Up?
Looking at previous price action of Bitcoin we can see certain events and occurrences that effectively drove Bitcoin price up, and we can see how these events changed the way that the price increased, and at what rates of change.
One of the major indicators that has driven price up is market cap. When Bitcoin’s market cap surpasses a big milestone, or reaches a huge price mark such as 50 million, it generally drives price upward. This is because it is generally a symbol that the asset is positively increasing and steadily shifting. A larger market cap can also symbolize consistency. This is a major price driver.
Political or public backing
Another factor that will drive Bitcoin positively is political or public backing. This can range from a major public figure saying that they’re investing in Bitcoin, or a major political positionary (Like Janet Yellen) spending millions into the research and development of the blockchain. It’s not a dying industry, and each time a public figure announces something about Bitcoin, price generally goes up.
Another factor that has shown almost consistent positive price movement is beating negative news or rumors. Each time there is negative news or rumors about Bitcoin, price tends to go down. But when these rumors are beat, the price is the catapulted upward. For example, rumors of a fork drove price down; but when these rumors rolled over, prices vaulted upward.
Another factor that will definitely increase Bitcoin price is technological advancement. Let’s say that Bitcoin speeds its transactions up (Segwit for example), this is positive news and leads to positive increases in price.
This is because investors and traders look for positive advancements; if Bitcoin can process faster, people will want to buy more because they’ll be able to do things faster, and resultingly, investors will want a piece of the pie because they see that people will want to invest when this news is released.
What Drives Bitcoin Price Down?
Bitcoin price goes through its positive phases as well as its negative phases; it can go both ways really and there’s no certain way that it’s going to go.
All that we can do as third party people with no large say in the action that Bitcoin will go in is to look at previous actions and how they are affected by what. So looking at history, we can look at why Bitcoin prices were driven downward in the past. The most recent example when Bitcoin price decreased drastically was rumors of the fork that would release another Bitcoin that would surpass the original Bitcoin’s price.
These rumors were very strong and the possibilities increased and people became fearful. People began to panic sell a week before the event occurred and the price dropped massively. Rumors that spread are usually bad signs. This can drive price down, but can also be good opportunities to buy in.
Another large factor that can lead price to go down is public or political influence upon the regulation of Bitcoin. When Bitcoin was applied as an ETF, the SEC denied this ETF and the price dropped almost instantly. People saw this as negative news and got nervous, so they sold. Of course, the price bounced back when the SEC said it would review its decision, however it did decrease. If a political figure states that they think Bitcoin is negative or not good for our economy, that will undoubtedly decrease prices.
These are main factors that are typically behind negative price movement in terms of Bitcoin since we haven’t seen much of that type of movement. There’s nothing that sets the price action in stone, only speculation that we can judge from. These speculations can be pivotal in predicting price movement however, and can lead to some great predictions if done correctly.
Margin Trading Bitcoin
One of the most recent implementations that many exchanges have been adding to their lineup and armory in terms of technology and capabilities is margin.
Coincidentally, one of the most dangerous and risky things that traders can possibly do, yet still do it is utilize margin. Utilizing margin is owning only a percentage of an investment you want to hold. So if an exchange utilizes 5:1 margin you only need $20 to own a $100 investment.
Sounds great right?
It’s a great tool, if utilized correctly. Margin can be used to make or lose money almost 5x as fast as you would with your initial capital. It’s a tool that must be used wisely however. Let’s say you make a trading play in which you invest $100 in Bitcoin at 10:1 Margin to own $1000 of Bitcoin, and Bitcoin tanks over 10%, and that $1000 turns into $900. Your ENTIRE investment is gone. All of your money is lost and instead of losing $10 without margin, you have lost all of your money.
Advice on margin trading
It is highly advised that if you use Bitcoin to only use margin when you are absolutely sure of a play, or if you are absolutely sure you can afford to lose that money. The saying goes, never invest more money than you can afford to lose and this rings true especially in this case. With Bitcoin, you should never invest more than you would be able to lose, as it is a volatile currency; although you can make a lot in short amount of time, you can absolutely lose a lot in a short amount of time with margin as well.
Many exchanges allow you to hold large positions at 2:1 to 5:1 margin, however each exchange is different. Nothing is ever definite and this should always be kept in mind when investing in Bitcoin as well.
Bitcoin and Online Gambling
The online gambling scene has slowly been declining. The original online gambling business was booming at first having some huge activity on the internet.
It was truly revolutionary in the online sense because for the first time you could literally simulate a gambling process through the internet. People didn’t have to go to casinos or anything of that kind and the entire process usually had lower fees. You could complete one of America’s most loved activities straight from the comfort of your home. Bitcoin truly revolutionizes the online gambling scene once more, and has been recently proving to do just that. For the past couple months, Bitcoin has started becoming implemented into most online gambling scenes for multiple reasons: for starters, users that are gambling can receive Bitcoin almost instantly after a game or process is completed.
Let’s take for example winning an online poker match that is funded through Bitcoin: the winnings can be directly sent to a wallet address making online gambling faster and more efficient than it ever was. Also, since Bitcoin is decentralized, there is no main force that regulates it. You can take that as you want, but instead of having hundreds of barricades and obstacles that need to be broken in order for gambling winnings to be delivered and such, Bitcoin is not regulated so it can in essence be given out to many people.
Anti money laundering
Although you will have to abide by the anti money laundering laws and the gambling laws that are present within the United States, Bitcoin can serve as an effective alternative to US Dollars being gambling winnings, and has already started being a great alternative for gambling.
It also makes sense because it doesn’t have to go through tons of fees that are associated with gambling winnings and eventually you’ll be given more of the net winnings rather than watered down winnings.
Bitcoin and its Future Implementation
Many times when people discuss the future they’re constantly referring to and talking about the future and what it could possibly hold.
There are many different things that might occur through Bitcoin’s adaptation however nothing for certain. People are looking up new things to add it to and use it for everyday; some of these things include making online payment systems for stores and for online outlets. For example, there’s a lot of different stores that are now starting to support Bitcoin. Through Bitcoin people can create fast and instant online payment systems for their start up companies or new internet businesses.
Future of Bitcoin
Bitcoin in the future may also offer some features that no other payment system has offered before. Bitcoin has shown advancement and increased focus on many aspects of the financial world; contract agreements, escrow payment systems, online anonymity, all of these hold extreme value and can prove to be some of the game changing factors that will help Bitcoin adopt to the public. Bitcoin in the future may also offer networks that will allow for bigger and better business transactions to be conducted. Businesses are always looking for ways that will help to secure and set their transactions in stone. Many people are always looking for security; Bitcoin offers that.
Many people are always paranoid that people are tracking their identity, that people know too much about their payments and about their life; Bitcoin offers haven from this. In the future, developers have promised increased transaction speed, increased anonymity and increased amount of anonymity features.
Bitcoin, as it has shown in recent events will slowly but surely make its way into public usage and adaptation. There is nothing that can known for sure and Bitcoin and the future is definitely bright, but nothing is ever guaranteed. There are too many areas that require modification for it not to.