Hello! Everybody. Welcome to Bitcoin 101. I would like to introduce Bitcoin to the World and How it would change our current system of money.
Without further ado, Time to answer the first question.
Is Bitcoin a good investment?
No, It’s already been 4 months since the Bitcoin bubble popped from 956,000+ Php per Bitcoin on 12 Dec 2017 to 352,000+ Php per Bitcoin this date of writing 10 Apr 2018.
Source: Coins.ph Bitcoin Price Chart
Now, it is not an ideal tool for investment because there is no indicator that it will skyrocket again over the next few years. To those who missed out on the Bitcoin bubble last December. Worry not! there are still other cryptocurrencies like Ethereum, Litecoin, and Dogecoin to watch out for.
This post was also made for the purpose of increasing your knowledge about Bitcoin. If you’re new to investing, I suggest you do not consider investing in Bitcoin and other cryptocurrencies yet.
And follow one of the golden rules of investing: “Never Invest in Something You Do Not Understand”
What is Bitcoin?
Bitcoin is a digital currency that can be sent anywhere in the world over the internet. It works as an open source software over a peer-to-peer network, bypassing banks and traditional payment gateways. Bitcoin is a cryptocurrency created by Satoshi Nakamoto in 2009.
What are benefits of using Bitcoin?
- Faster cheaper payments – send money across the globe in minutes with extremely low fees.
- Increased privacy – Bitcoin transactions are public but your identity is private.
- No central authority needed – No banks, credit companies, and government taking 2-3% cut on international transfer.
Isn’t Bitcoin used for illegal transactions like selling of drugs?
Yes, Bitcoin can be used for illegal transactions because the identity of both the seller and buyer are anonymous. Bitcoin may have a bad reputation for allowing such transactions but as far as security goes it is still beneficial in this world of innovation.
What is Bitcoin Mining?
Bitcoin is mined through the use of computer and other hardware capable of solving complex math problems and algorithms from blocks (a chunk of senseless data) to a proof-of-work verified by a blockchain technology, a digital public ledger as Bitcoin.
To further illustrate, A miner (computer or hardware) is mining in an underground tunnel (blockchain) digging out the mine(blocks) for gold (proof-of-work) and then minted (processed) to coins (Bitcoins)
Is Bitcoin Mining profitable?
It depends if the income generated can overcome the expenses it would cost.
A short history. Before mining was as easy as firing up your computer and running a Bitcoin mining software producing a really good passive income. Now it became more complex and globally competitive. Before mining can only be processed by a CPU then they realized GPU (commonly used for gaming) has more power doing repetitive task and then finally they invented an ASIC miner that is similar to a GPU but was made specifically to mine Bitcoin. The world made numbers of ASIC mining farms some of the main participants are China and Russia.
In the Philippines, you could still mine using your GPU but I think it’s not worth it because of the electricity cost, maintenance cost, the hot temperature that can overheat your GPU or make you spend more on Airconditioning, and the volatility of Bitcoin. But some entrepreneurs manage to make a living out of it.
How can I buy Bitcoins?
Go get a wallet at first at https://coins.ph/ and please use my invite code 9uc3jr upon registration. You can buy an astronomically small fragment of a bitcoin for as low as 5 Php.
I will end the blog from here. I believe this topic deserves another blog.
Blogger | Intrapreneur = Entrepreneur + Employee | Investor | Book Enthusiast |