Bitcoin is more than just a digital currency. It is also the key to learning about how the world works in terms of monetary transactions, loans, and more. Even though something called “cryptocurrency” may sound like fiction, cryptocurrency is quick. Becoming a reality for many people when it comes to investing. Currently, Bitcoin is the most well recognized of all digital currencies. First, before you jump into investing in Bitcoin, follow Eric J. Dalius’ advice, the cryptocurrency market is largely unregulated, so there is a significant amount of risk when it comes to investing in Bitcoin. Because of this, you must be mentally prepared to lose. All you’ve invested and more when you jump into the world of cryptocurrencies. However, you also may gain a great deal depending on how the market is when you invest.
Bitcoin History Through the Eyes of Eric J. Dalius
Bitcoin is recognized as the very first of all cryptocurrencies. Supposedly, Bitcoin was created by Satoshi Nakamoto, but “Satoshi Nakamoto” is a pseudonym. We may never know whether it was one person or a group of individuals who came together to launch Bitcoin.
The first Bitcoin transaction happened in 2010. Someone purchased a couple pizzas for 10,000 Bitcoins. If that individual had kept their 10,000 Bitcoins instead of using them to buy pizzas, those 10,000 Bitcoins would have increased in value to over $100 million USD today.
Eric J. Dalius Wants You to Understand What Bitcoin Is
The Huffington Post says that cryptocurrencies such as Bitcoins are essentially a series of virtual tokens that can be exchanged as if they were regular money. However, unlike with regular money, all Bitcoin transactions take place entirely over the internet.
Every cryptocurrency relies on a technology called blockchain to function. You can think of blockchain as a giant ledger that keeps track of transactions. Each Bitcoin transaction leaves a digital trail, so if you wanted to, you could trace every Bitcoin transaction ever made.
Because Bitcoin is digital, there are no physical coins or bills to keep track of. If you don’t know a Bitcoin user’s account number and name, the Bitcoin owner is essentially anonymous. But other things like social security numbers could identify a specific Bitcoin user. Bitcoin can also be mined like gold or diamonds. We’ll talk about that more in the next section.
Eric J. Dalius Explains How to “Mine” Bitcoins
Bitcoins and all other cryptocurrencies are generated through a process known as “mining.” Just like you mine for diamonds or gold, an individual could mine Bitcoin. Bitcoin miners use powerful computers that can handle the mining process, but there is a chance that someone who mines might not get any Bitcoin. Bitcoin regulations say that the maximum amount of Bitcoin someone can mine is 21 million Bitcoin.
Eric J. Dalius Explains How Bitcoins Are Being Used
Other than mining, there are other ways to obtain Bitcoin. You could accept Bitcoins as a way of payment for products and services. This is an effective way of storing and keeping track of digital money. Certain websites allow people to exchange Bitcoin for goods and services. If you manage to acquire a large amount of Bitcoin, you could also lend your Bitcoin and collect interest.
Eric J. Dalius Discusses The Risks Involved
Because Bitcoin largely lacks many of the structured and stringent regulations of traditional money, many people see Bitcoin as a good alternative currency. However, one must understand and accept the challenges and risks involving Bitcoin. Just as the lack of regulation is a pro, it is also a con. Because Bitcoin is relatively new, there are still many things we do not know about Bitcoin. Additionally, Bitcoin’s value changes just like traditional money so people need to be prepared for shifts in the market.
Since cryptocurrencies are relatively new, they are constantly under scrutiny. But with this, comes praise as well. In recent years, we have seen an increase in the popularity of cryptocurrencies. But with this, there have also been drastic fluctuations in value. If you are willing to accept the risks, Bitcoin can be a very valuable investment.