What Is Bitcoin and How You Can Make It Work for You in 2021?

What Is Bitcoin and How You Can Make It Work for You in 2021?

It’s not for everyone, definitely, and the more risk-averse may find investing in Bitcoin can be scary. But for those who are forward-looking and tech-savvy, Bitcoin may just be something they should invest in and perhaps even profit from it.

bitcoin

In this age of technology, digital currency is all the rage.

Being able to transact without having physical money is now so much easier and convenient.

Most places allow you to use your ATM or debit card to pay for goods or services.

Many places offline and even online accept digital wallets such as PayPal, Venmo, Google Pay, and Apple Pay as alternative modes of payment.

However, while digital transactions are very common now, there is still a fear of security issues like being hacked.

So this is where cryptocurrency comes in and no other cryptocurrency is more popular and well-known than Bitcoin.

But what is Bitcoin?

What does it do and how can it benefit me?

Today, we will answer these questions and find out more about Bitcoin price, Bitcoin to USD conversion rates, and even Bitcoin stock info. 

What is cryptocurrency?

Cryptocurrency is a form of digital asset similar to digital currency that can be traded away for service or goods similar to physical money.

Currency ownership is stored in databases that use strong cryptography and blockchain technology.

Bitcoin is the first open-source released cryptocurrency that has gained popularity in the past few years with many other currencies such as Litecoin and Ethereum.

Many of these cryptocurrencies can actually be converted into US Dollars.

Now, let’s put a spotlight on Bitcoin, the most popular cryptocurrency on the market.

What is Bitcoin?

https://www.youtube.com/watch?v=L-Qhv8kLESY

It is a form of digital currency and the first cryptocurrency that was first created back in January 2009.

It’s cash that’s completely online and does not have a physical element.

Transactions are made with no middlemen or financial institutions involved and have no central governing body to regulate or oversee the currency.

It is the most accessible and most popular form of cryptocurrency which is actually accepted as a form of payment for services such as transportation or accommodation.

While not many establishments carry this currency, it is gaining platform with some establishments actually working around mostly on this and other cryptocurrencies. 

But how does it actually work?

The Price and Value

I won’t bore you with the technicalities but the currency only operates online.

Though there are physical coins available, they don’t actually have value apart from the digital code inscribed on the physical coins that identify ownership for that currency.

What allows it to work is that it actually has a value with real live currency with the Bitcoin to USD conversion currently at around 40,000+ USD per coin.

Basically, even a fraction of the cryptocurrency has a value that can be used for trading and transactions. 

There are three ways for you to acquire Bitcoin:

  • Buy – It can be bought using any live currency. There are many places online that allow you to buy the currency to put into your digital wallet. It is also available like trading stock options at a stock exchange. For more information on Bitcoin stock info, it is best to search online.
  • Trade/Transfer – It can be transferred from person to person. You can easily transfer the currency from one digital wallet to another very much like transferring funds from one bank account to another. 
  • Mine – If you have a top of the line computer with a strong graphics card, the third option is to mine for the coin. This process involves your computer’s processing power to generate new coins that can be stored in your digital wallet.

Is It Safe and Secure to Use?

bitcoin

One thing you have to remember is that the cryptocurrency was designed to be secure.

There’s a level of anonymity when using the coin, unlike other digital transactions that usually tag you via a name.

Though trades are usually done through public logs, there is no centralized regulatory authority and the only identifier for transactions are wallet IDs.

This means that tracing transactions will be difficult allowing you to make transactions securely without exposing yourself.

It has become the choice of currency for those who are making sure there are no traces of their actions.

Why Should I Use Bitcoin?

Well, obviously its design was geared towards safety and anonymity so those who are afraid of being hacked or identity theft should feel more secure to do transactions with the currency.

Apart from that, more and more establishments are using Bitcoin for their transactions making it easier and more simple for you to book tickets for events or transportation, or maybe to pay for accommodations.

It also is tradable so if you have invested in the stock market before, then this is another option for your financial portfolio. 

How Can I Make It Work For Me?

bitcoin

Trading with the currency comes with a bit of risk just like anyone trading on the stock market.

However, the difference is that the Bitcoin price seems to be in an upward trend and doesn’t seem to be going down anytime soon.

Investing with the cryptocurrency now is especially with the current pandemic situation as many transactions have really moved towards digital transactions.

Buy now if you can and then see its value go up in just a few months or even in a few years with the situation going on now.

To put into perspective, the Bitcoin to USD transaction used to be around $20,000+ back in 2017 and is now more than double in value in 2021. 

Another way you can make it work for you is through mining.

As I have mentioned earlier, mining uses your computer’s resources to generate new coin.

It’s typically just a fraction of a whole coin, but that’s actually money from nothing. With a decent and fast computer, you can be well on your way to generating money for yourself. 

bitcoin

Final Thoughts

Bitcoin is definitely a way into the future when it comes to digital currency.

This cryptocurrency allows you to do transactions digitally in a safe, secure, and even anonymous manner.

This means it’s designed for your safety and privacy. It’s not for everyone, definitely, and the more risk-averse may find investing in Bitcoin can be scary.

But for those who are forward-looking and tech-savvy, Bitcoin may just be something they should invest in and perhaps even profit from it.

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Author: John Benares

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