Tuesday, November 28, 2017

What is Bitcoin

Bitcoin is a type of digital currency. It is also a payment system. Bitcoin was created in 2009 by someone named Satoshi Nakamoto. To this date, no one knows who Satoshi is. There are many theories (Elon Musk, a supercomputer in China, etc.), but no one has officially stepped forward to claim the honor. As part of the creation, s/he also created the first blockchain database. Here's a link to the white paper (Bitcoin: A Peer-to-Peer Electronic Cash System) which explains how bitcoin works.

What problem did Satoshi solve in the white paper? S/He made it possible for a technology to be the intermediary by coming up with a logic to obtain consensus by all parties. In this way, no "trust" broker like a bank or lawyer is needed.

The number of Bitcoin available in the market is limited to approximately 21 million. There are approximately 16.7 million bitcoin on the market today (you can see how many bitcoin are currently on the market by clicking here). As of 11/26/2017, bitcoin is worth a little over $9,000. You can check on the latest bitcoin price here.

Due to its popularity you can use Bitcoin at numerous stores. Some of these stores include:

WordPress.com, Overstock.com, Subway, Microsoft, Reddit,Virgin Galactic, OkCupid, Namecheap, CheapAir.com, Expedia.com, Gyft, Newegg.com, and Whole Foods.

In addition to being able to send an unlimited amount of money to anyone with a cell phone, Bitcoin transactions are also anonymous. As President Obama stated, if the govt. can’t crack encryption, then people are walking around "with a Swiss bank account in their pocket."

The implications of this last point are very compelling. Bitcoin can't be manipulated, controlled or shut down because it's completely decentralized. If government could shut it down they would have done so already.

You can obtain Bitcoin in three ways: buy it, mine it or trade it

Buying Bitcoin 

If there were a central bank of Bitcoin it would be Coinbase. You can buy Bitcoin through Coinbase, but your payment options are limited.

You can also buy Bitcoin through a peer-to-peer network like Craiglist. The Craigslist of the digital currency world is LocalBitcoins. You can purchase Bitcoin with over 300 different payment options on LocalBitcoins, including Paypal, gift cards, credit cards or Amazon.

Click here for a list of payment options on LocalBitcoins. 
Click here for a comparison of LocalBitcoins and Coinbase.

Mining Bitcoin

In addition to buying Bitcoin, you can also obtain it by making it. This is what people refer to as bitcoin "mining".  The Internet is full of videos showing you how to set up your mining "rig". This video is just one example.

Trading Bitcoin

To trade bitcoin you need to sign up with a service that will provide the volume you need. These services are referred to as exchanges. My favorite trading platform is Binance. This isn't the largest exchange, but they have the best opportunities for traders. The best site for looking up market information about market size and volume is CoinMarketcap. I'll be providing more information about trading in future posts.

If you like what you're reading, please join my mailing list to receive blog posts and updates as they occur. If you're an investor with all of your assets tied up in the stock market and cash, you might want to consider a few diversification strategies. Gold is the oldest asset in the world and it's inflation proof. Bitcoin is the gold standard for the cryptocurrency world, which is the fastest growing asset class in the world. Diversifying your portfolio into one or both of these assets can help to insure your portfolio against a stock market crash or inflation. Most importantly, it can help to safeguard the gains you've made over the last 10 years.

Please note that there are other companies that sell gold and Bitcoin on the market, and you should always do your research when making decisions about your portfolio. Just like your personal health, if you're planning on having major surgery, you need to get a second, and sometimes a third, opinion. You want to make sure your surgeon is good and has performed the procedure many, many times.  In the same way, you need to trust your broker and you need to make sure they are reputable. This is the process I used when looking for a broker to recommend.

Full disclosure: RegalAssets compensates me for everyone I send their way, but I would receive compensation from any company I chose to recommend. The only broker I'm recommending is Regal, primarily due to its innovative product offering in my favorite commodities - gold, precious metals and cryptocurrency like Bitcoin. They also have a distinguished track record for success (see below).

Next Steps: Use Regal as one of your options and compare against them. Your other brokers should be able to offer the same level of service and the same low rates. The kit is free and it will provide you with a basis for comparison. Don't wait, get started today. Fill out the form below to get your free investment kit.

If you're interested in learning more about gold investments, click here to receive a free gold investment kit from Regal Assets.

If you're interested in learning more about Bitcoin investments, click here to receive a free Bitcoin investment kit from Regal Wallet.

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