It’s no secret that we live in a technologically advanced world. Since the advent of the internet many years ago, we have experienced a vast array of changes and developments in the way we perform everyday functions. The latest technologically advanced craze has been the advent of what has been termed cryptocurrency. Although there are now various forms of cryptocurrency, Bitcoin seems to be the one that most people are familiar with. What is Bitcoin? How is this unique form of cryptocurrency acquired? What are the benefits associated with Bitcoin and what does this future hold for it? The following information will answer these common questions in more detail.
What is Bitcoin?
Bitcoin is referred to as a cryptocurrency that was first created in 2009. The unique thing about this form of currency is that transactions that are made using Bitcoin are performed without the use of a middleman. There is no credit card processing company, bank, or other financial institution involved whenever a transaction using Bitcoin as the form of payment is performed. Bitcoin is a genuine form of currency that can be used to book hotels, pay for furniture, purchase clothing, and a multitude of other expenses that we all likely perform on a daily basis. All of these transactions occur seamlessly with no personal information between the buyer and seller exchanging hands. For this reason, many people have become interested in Bitcoin because they feel it is a safer way to do business online than the traditional means of using credit cards that may require personal details of the cardholder to be shared.
How are Bitcoins Acquired?
Now that we have a deeper understanding of what Bitcoin is, how does a person obtain this currency? Bitcoin can be obtained in a variety of ways. Most people who are interested in using Bitcoin simply purchase it from a wide variety of locations. Other people that are more tech savvy can set up elaborate computer systems that are capable of mining Bitcoin. Once a person owns Bitcoin, it can either be spent, sold, or traded on the stock market.
What are the Benefits of Bitcoin?
Many people are enticed by the concept of Bitcoin for multiple reasons. For starters, Bitcoin is unique in that it is not subject to any form of government regulation. International payments and purchases are simple and cheap since the currency does not need to be transformed into a different currency. Small businesses appreciate the use of Bitcoin because it cuts down on overhead and credit card transaction fees. Others believe that investing in Bitcoin is simply another way that they can potentially earn greater wealth. Consider the following benefits in a little more detail.
* Easy Transfers
Traditional money transfers can take days or even weeks in some cases. Transferring money between different accounts at different financial institutions requires the funds to clear at each facility before they can be accessed by the individual. Bitcoin transfers are instantaneous, seamless, and effortless. They can even be performed instantly via cell phone or other smart devices.
* Buying Anonymity
As mentioned previously, there are still a lot of people who don’t really like giving out a lot of information online about their identity. This information is usually required when making purchases online via credit card. At the very least, your credit card number, name, address, and birth date are made common knowledge. This information can even be sold to third parties or stolen by those who seek to steal your identity. Purchases made via Bitcoin are completely anonymous. The seller never has access to anything more than your anonymous Bitcoin account number.
* No Middlemen Means No Government Regulation
Unlike bank accounts, Bitcoin isn’t insured by the FDIC. While this may seem scary to some, others see it as a huge advantage. The lack of government involvement means that inflation, government confiscation, hacking, and economic turmoil can’t have a negative effect on Bitcoin the way that it can on other forms of currency.
* Possible Investment Opportunity
As briefly touched on above, Bitcoin can be accumulated, bought, sold, and traded on the stock market. The price of one Bitcoin has shot up so much that some people who originally purchased Bitcoin at the beginning of its creation and development are now independently wealthy by turning around and selling their shares for a huge profit.
Agora Financial: Our Stance on the Future of Bitcoin
With all of the pros and cons involved in this relatively novel form of payment, what does the future hold for Bitcoin? Agora Financial recently discussed their viewpoint on the future of this seemingly volatile cryptocurrency and what it may mean for both users and investors.
They noted that a prominent private school in the state of New York recently made headlines for allowing parents to pay their children’s tuition with Bitcoin. It seemed that this questionable form of payment had essentially become mainstream. Is Bitcoin a revolutionary form of payment that is here to stay? No one can say with absolute certainty that it is foolproof, but for the time it appears to be sticking around and experiencing rapid growth.
Agora Financial noted that Bitcoin is known for the intriguing blockchain technology that underlies its usage, but they note the important point that users do not need to have specific knowledge of how it works to benefit from it. With a small start-up fee and an open mind, anyone who is willing can make a go of profiting from this exciting new virtual currency.
Agora Financial is a private publishing company out of Baltimore, Maryland. Agora Financial produces books, printed and email publications of various types, and holds conferences covering a variety of financial topics. Founded in 1979, the company continues to publish an array of financial advice newsletters, email subscriptions, and other forms of investment suggestions for those interested in learning more about creating their own wealth.