What Is Bitcoin? A Simple Investing Explainer – Last year, since the Great Depression, we saw the most significant decline in the economy, yet we saw the first real signs of a migration of the global financial system into rapidly growing markets.
We have to start from the beginning to truly understand crypto. A person was only invented identified as “a whitepaper in October 2008. Satoshi Nakamoto launched on January 3, 2009 Bitcoin (an electronic release that checks its cryptographic transactions). His unique identifier was his peer-to-peer system which no government or person could control.
Hashcash and Digicash are two projects that preceded Bitcoin. That isn’t the first attempt by someone trying to develop forms of electronic money. But the ‘double spending’ problem was not solved, which means that people can spend the same money twice—introducing a permanent time-stamped booklet, the solution of Bitcoin. This makes each coin unique and traceable, as every Bitcoin transaction history can be seen publicly on the Bitcoin blockchain network.
The registry is decentralized, and no group is controlled, thus empowering financial institutions and companies to transform transactions and decentralized money.
Explaining Bitcoin (simply)
In general, an ‘unlimited’ supply is available when you buy some form of a digital product (for example, when you buy a movie, song, or game online, the company can sell as many copies as they want.) Blockchain is based on Bitcoin technology that makes every Bitcoin one person at a time, the digital asset that has the number to choose from is the first digital asset that makes it the first digital asset. Every bitcoin is intrinsically valuable because it is a kind of copy, and almost nothing, in particular digital copies, can not be replicated so that a digital object takes astronomical value. It looks most like digital gold, and because of its stable supply, gold is valuable and can be transferred. Bitcoin has a fixed collection and is transferred and stored even more efficiently.
You can trust someone in the digital world with this technology. You can send information, documents, payments, and much more 100% verified by Bitcoin technology (this is called). Blockchain Technology creates a network where everybody in the network checks and guarantees each transaction constantly; this is the revolution, security, and confidence that everybody uses the network guarantees. This opens the possibilities of a decentralized company with no profits or controls the ecosystem, insurance, social media, video platforms, etc. Instead, the ecosystem can be openly, transparently, and trusted controlled by users. Therefore, you can have a video platform where user privacy is verifiably secure, an insurance company that does not have overheads, and much more, where users are guaranteed that the savings accounts or investments are the best deal.
Do you have to invest in Bitcoin?
This is the first digital way to get away from governments with the power to print money and control currencies, which happens to be an excellent time when so many governments print money endlessly and artificially stock—transparent and immutable digital assets. For example, you don’t really know what a U.S. dollar’s savings bank account it’s going to, at best 0.25 to 1.25 percent interest, and the Federal Reserve & Government controls the U.S. dollar itself. You can also get a 3-12% return (no salespeople, no marketing, no stock dividends, no profit movement because everything is transparent and verifiable). You can even control future products and upgrade the credit platform if you deposit Bitcoin into a Decentralized Lending Platform. Besides, no one contains the Bitcoin you put on this platform, and you know what its monetary policy is going to be forever.
When we compare Bitcoin with gold, they are rare assets used to safeguard against shares and currencies. Bitcoin is used as a haunt by Grayscale, Square, Paul Tudor Jones, Fidelity, and many more prominent investors. Bitcoin is better than gold in the key: easier to transfer, easier to store, more steady and transparent (supply increases are preset and unchanging), a digital and an endless world. However, Bitcoin’s market cap is 96 percent smaller than gold (around 9 trillion for gold and approximately 300 trillion for Bitcoin), taking into account that Bitcoin and the rest of the digital asset space have a high ceiling for traditional competitors to grow.
The Transparency Offered by Blockchain
This decentralized system comes with tradeoffs, Bitcoin, and blockchain technology tagged as malicious and “criminal” technologies. This story starts changing, but Blockchain is still space. Blockchain tokens were one problem, and companies started with anonymous founders to defraud users. We would like to change this story and show that small startups can start more transparently and sustainably.
I co-founded a project called xBTC, which shows how people can build companies long-term and legitimate in the new blockchain area. These types of projects define and integrate digital assets into the mainstream. They are producing products that can quickly be produced while being relying on millions and using the technological advantages of the Blockchain. xBTC and other projects create new and transparent, and open ideas and new technologies. This allows digital assets to grow and provides the entire space with a brighter future. The numerous scams and anonymous founders produce and maintain the stories of digital assets used for illicit activities and abuses.
Read also: Hands on: Beats PowerBeats Pro review
Digital assets enable technology and startup to be democratized and decentralized. Everyone can quickly and easily start a new technology and business from scratch. Various founders and projects abused this system by creating fake websites, products, or business projects. Then they are receiving funding from users worldwide for tens of thousands and sometimes millions. They can get rid of the raised money and leave the project behind without recourse to users via remaining anonymous and doing everything digitally.
Bitcoin, How to Buy
Big brokerages such as Coinbase or Gemini are the easiest way to purchase digital assets.
Since we see governments beginning to regulate digital assets officially and major financial players come into the arena, Bitcoin and other cryptocurrencies have a bright future. A few weeks ago, the French adopted clearer crypt regulations, and Microstrategy bought Bitcoin for over $500 million in convertible bills, and MassMutual bought Bitcoin for 100 million dollars. Over 24 hours, the Greyscale Investment Fund has purchased over 1,000 Bitcoins, plus 100,000 Ethereum. It’s only been a week of news. The big institutions and players are just beginning to become involved in space, which only provides digital assets with more capital and legitimacy. This move of more traditional actors and governments to space means accepting and trusted more and more. Just as Bitcoin is less than 500 billion in combined market capacity across the entire digital asset space, we are only at the beginning of growing cycles for a new and changing technology. At xBTC, we bet other digital resources start overtaking Bitcoin as banking, insurance, gaming, social networks, consumer commodities, and more are revolutionized. Bitcoin is only the top iceberg for digital assets, and many more innovative assets are available in the space. We make it easy to buy and speculate on Bitcoin dominance. We believe that Bitcoin Dominance is a key indicator of this future.