Digital currency in many forms is transacted daily and today it feels like technology is taking over. Everyone is tapped into their phones and computers every day for hours. Entire lives are spread across databases and apps. Bitcoin and cryptocurrency are now income streams for many people today. Many millions of people now spend digital money in the form of bitcoin cryptocurrency for services and products. For this reason, it would be wise to explore the benefits and pitfalls of using bitcoin and cryptocurrency.
Now is the time you want to get a piece of Bitcoin because the trend shows that it will here for a long time and its value is on an incline. There is a set amount of Bitcoin to be mined that will be completed by 2050 in estimation. In the trade market Bitcoin is worth way more than the American dollar or any dollar from any country.
Profit by buying low and trading or selling at a higher price.
People are making money by trading Bitcoin. For some a little hobby, but others make a living out of it. One of the simplest ways to understand how they are doing it is to understand that Bitcoin is king cryptocurrency and there are lots of cryptocurrencies underneath Bitcoin. Alt-coins (Alternative Coins) are of less value and some or more volatile than Bitcoin so the price changes more radically and frequently. As the price see-saws, each day and people play accordingly trading back and forth — moving the money to different currencies and turning a profiting. Profit by buying low and trading or selling at a higher price. Bitcoin and cryptocurrency trading have become a new income stream for many.
The digital world has even changed what money we use and how we spend it. For instance, you can’t feel it, see it, smell it, or taste it, however, you can buy it, sell it, or trade it. Today each one of these has reached a value of over $12,000. What I am talking about is the Bitcoin, it only exists because of cryptography, which is mathematical equations a computer figures out. Cryptocurrency has grown in popularity all over the world. If you don’t own any by now you may be missing out on a digital gold mine.
Bitcoins can be traced to the aftermath of the global recession and monetary crisis of 2008
Economist Milton Friedman received the 1976 Nobel Memorial Prize in Economic Sciences. He predicted a time where the Internet would help abolish the role of a government and evolve a currency free from the shackles of government control. Less than ten years later Satoshi Nakamoto, a Japanese, invented a form of cryptocurrency called “Bitcoin.” The origin of Bitcoins can be traced to the aftermath of the global recession and the monetary crisis of 2008. This event shook the whole world economy.
You can’t hold it, but you can spend it.
How does Bitcoin grow in value? As an income stream, Bitcoin benefits from the “network effect” which makes it more valuable as the network grows. Since the rule of Supply and Demand dictates the more people that use a commodity the more its valued and wanted even more. As it pertains to the currency which is used in our daily lives we seek to use digital currency to buy, sell, or trade to influence it’s valued while in our possession. So just possessing Bitcoin could be an income stream as the value could rise by 50 times its current price in the coming decade.
With Bitcoin so valuable, there the threat of theft and dishonesty on all levels. In the digital world, this is frightening because you may not know how to fully protect your wallet or you may have money sticking out of your virtual pocket. There are plenty of scamming hacker thieves who prey on such opportunities. So there are things to look out for and be careful of.
Scams to watch out for
- Fake Crypto Investment Platforms
- Giveaways Scams Via Tweets & Other Social Media Updates
- Scamming Emails, Phishing, Technical Support, Impersonation Scams
- Investment Scams
- Loader or Load-up Scams
- Initial Coin Offerings (ICOs)
- Unregulated Brokers & Exchanges
- Bitcoin Trading Systems
- Mining Scams
- Pump and Dump schemes
A few days prior to this on August 14th, it made world news that the US Justice Department and the FBI seize 300 Cryptocurrency Accounts For Helping Terrorists Raise Funds The terrorist groups including Al-Qaeda and Hamas’s military activities and terrorist operations. They reported “Two million dollars in cryptocurrency seized. Their claim was that they can use to buy a lot of equipment. Many terrorist activities may receive funding with such a large amount of currency. Money for weapons to training that they can fund, in addition to flight tickets for all sorts of destruction and disruption.”
Easiest ways to get Bitcoin are online or at an ATM. Prior to the Shelter in Place when the malls were open there were a lot more accessible but you can still find some ATMs at local gas stations. The one I have used is the Coin Cloud Bitcoin ATM. Should you experience any difficulty using the machine there is a site and 800 number posted to get 24-hour assistance. Issues can take some time to resolve and transactions are not instantly completed. A little patience is required the most significant drawback for me personally.
Online you purchase Bitcoin from an Exchange like Coinbase or Binance. You can also receive it from individuals and even money-making websites or mining sites. There’s a ton of resources to find once you go looking.
The Truth about Bitcoin
A drawback to Bitcoin is it can be used with very few merchants. It is necessary to transfer it to a fiat or another currency to use in some ways. You can’t use it to buy liquor or when you go shopping. Online retailers are slowly catching on and accepting cryptocurrency more and more.
Currently, when you use it for products and services you must transfer it online using your secure digital wallet that stores it. Use passwords and codes to complete the transactions so you will need to keep extensive records for yourself. Money may be lost and you are solely responsible for any mistakes or information loss.
