Bitcoin, what’s that?
Bitcoin is a digital currency system that is decentralised, peer to peer, designed to allow online users the ability to process transactions through a digital exchange unit known as Bitcoins. It is a virtual currency, in other words.
An unidentified programmer(s) developed the Bitcoin framework in the year 2009. Since then, as an alternative to US dollars, Euros and commodity currencies such as gold and silver, Bitcoin has attracted tremendous popularity as well as controversy.click reference
Growing to Prominence
Before the year 2009, Bitcoin had not received much attention in the business and finance environment. In the 2011-2012 era, it rose to prominence when it gained over 300 percent. Since August last year, Bitcoin has undergone a 400 percent rise in its value. As a result, the blockchain continues to be of interest to venture capital companies and investors around the world.
Venture capital companies spent $57 million in Bitcoin in the first half of 2014 in the first quarter, followed by another $73 million in the second quarter, for a total of $130 million, which is 50 percent more than the total of $88 million last year. This is a total contrast to the 2012 situation in which Bitcoin companies collected a comparatively small $2.2 million amount.
These figures show beyond doubt that your investment is worth Bitcoin, which raises the question of how can you purchase and invest in Bitcoin?
A checklist for inexperienced Bitcoin investors
Bitcoin transactions are the best and least complex way to invest in Bitcoin. There are a lot of existing companies engaged in the business of buying and selling bitcoins, abbreviated as BTC, primarily in the US as well as abroad.
If you live in the U.S., then the position you’re looking for is Coinbase. At an average mark up of 1 percent over the current market price, Coinbase provides its customers with BTC. United States citizens have the option to synchronise their Coinbase wallets with their bank accounts. As a consequence, potential transfers of payments are made trouble free. This business also offers you the option of purchasing automated bitcoin from time to time. For example, at the start of each month, if you’re interested in buying $50 in bitcoins, Coinbase allows you to set up an auto purchase for that amount.
When you start using this programme, be mindful of the terms and conditions. If you have subscribed to an automated bit coin programme, then the price at which the BTC is purchased each month will not be regulated. Notice that Coinbase is not a Bitcoin exchange, i.e. the coins are bought and sold directly from the company. Since the company has to procure the coins from other customers, during rapid market movements, you can face delays or disturbances when placing orders.
The specifications of a traditional bitcoin exchange are met by BitStamp. Bitcoin serves as an intermediary that enables you, and not the business itself, to exchange with other users. The liquidity is higher here and you still have a great opportunity to find someone willing to trade with you. There is a 0.5 percent initial charge that can be reduced to 0.2 percent if you exchange $150,000 over a 30-day period.