What is Bitcoin? BTC review. Everything you need to know!

Bitcoin

Probably you have heard about bitcoin or other cryptocurrency. But zero knowledge about Steem. Since, I’ve been in blockchain community a couple of years ago and now I am getting a LOT of inquires from families and friends about Bitcoin and whether if it’s a good investment.

So I write this article to answer all the questions they might asked.

What is Bitcoin?

Bitcoin is the first cryptocurrency that is created by Satoshi Nakamoto and one of the leading cryptocurrency in term of marketcap right now.

The keyword is “crypto + currency”, and crypto is refer as cryptography while currency refer as currencies. Therefore, cryptocurrency means secret currency that stored in the public ledger.

Let me explain that. The most important definition of what BitCoin is, is not that it is a leading cryptocurrency in term of marketcap, or that it is a “crypto” meaning anonymous. But it is just another currency.

And Bitcoin being as currency means that it has no inherent value for it’s own sake or not backed by a physical commodity such as Gold and Silver.

Example of inherent value is a house which is to provide shelter. Another example is a ballpen, inherent value of a ballpen to a tool for writing.

Now currencies on the other hand, be it Peso, Dollar, Euro, or Bitcoins have no other primary use except to exchange it for actual goods or services.

So in a nutshell what is Bitcoin? It’s just another speculative currency that is not controlled by any central government and is completely digital.

How do people make money on Bitcion?

The value of Bitcoin has been going up in the recent years knowing the fact that it has no inherent value. Well, when we say value in this case, I mean it to be relative.

Meaning the value of Bitcoin compared to other currencies has been going up.

In 2010, 1 Bitcoin (BTC) was virtually useless.
In 2011, 1 BTC were equaled to 1 USD
In 2013, 1 BTC reached up to 1000 USD
In 2015, 1 BTC went down to 500 USD.
In 2017, 1 BTC reached 9000 USD.
In 2018, 1 BTC reached to over 2000 USD.
In 2019, 1 BTC went down to 3000 USD.

So if you held on Bitcoins in 2011, you would have profited your money today regardless the bear and bull market.

But if you started on Bitcoins in 2017, your money would have been lost by now if you got out.

So how do people, make (or lose) money on Bitcoin?

It’s currency exchange. Just like how the USD to PHP has been changing over the years. Bitcoin is just like that, but on steroids. Bigger ups on bull run and downs at a much faster time frame on bear market.

Why Is the Price of Bitcoin Going Up?

To answer this question, it all boils down to what BitCoin is, a Currency. And the value of a currency is driven by the number of people who use it.

For example, let’s say a person wants to buy your house. And her offering 100 BTC. (100 BTC = 400,000 USD) But the condition is you can’t convert the BTC to other currencies.

Would you accept the Bitcoins? Unlikely, right? Because the grocery store won’t take your BTC’s as payment. You can’t pay your electric, water, or utility bills using BTC! See the issue?

A currency is only worth how much people are actually willing to use it. So back to the question, why is Bitcoin going up?

Two Factors:

First, because, more and more governments, businesses and everyday people worldwide are willing to accept it as a currency.

Second, or, its because people are buying it to make money.

Now these two factors are very tricky.

Because first factor is an actual Bitcoin usage as a currency, drives the long-term worth. While second factor is a demand to just make money is driving the short-term worth of Bitcoin.

Where Will Bitcoin Go?

Before I give my recommendation on what to do with the Bitcoin craze, let me first explain my outlook.

The value of Bitcoin will continue to go up, as it will be driven by people’s greed to make more and more money. Until it stops. The “bubble” pops.

And the value of Bitcoin will drop down to it’s actual worth driven by real usage of it as a currency.

Where those numbers exactly are? Whether it’s $4k, $10k, $150k $1M…. I don’t know, Bitcoin is speculative at the moment.

Is Bitcoin a good investment?

This is a question on a lot of people’s mind. And depending on who you talk to, they’ll have different answers!

To those who already invested, their answer is: YES, of course! Bitcoin is a revolution!

But to those who choose not to invest, they might be saying it’s just a bubble, and should be ignored!

Meanwhile those who bought at $1 and sold near $20k will tell you Bitcoin will go to the Moon!

But those who bought at $20k but panic sold when it dropped to $8k, will vow that they will never touch Bitcoin again.

So many opinions, who do you follow? Do your own research, you should learn how to be a good investor overall, so you can evaluate on your
own if Bitcoin is for you or not.

You don’t have to follow people. Instead follow the investing principles. This is why I believe my answer to the question “Is Bitcoin a Good Investment?” is beneficial for all.

How to Get Started in Bitcoin?

Getting started with Bitcoin or cryptocurrency involves two major part. First, get a secured wallet (web wallet, paper wallet or cold wallet). Second, get into the most trusted and secure exchanged.

Getting a secured wallet:
Since the beginning of Bitcoin there is a discussion among blockchain community member going on about how to create a secure wallet for your assets. Either it is a Web wallet, soft wallet and hard wallets or a multi-coin wallet. There is always a best option where you commit your private key.

As a beginner, it is highly recommended a web wallet for your Bitcoin. No setup is needed, you just need to signup.

What is web wallet?
Web wallet is usually managed in a shared server by third parties. It means that, you don’t have to download the whole Blockchain ledger in order for you to transact. Since, it is a third party, it is hard for you to trust your money with them. Because as of the writing, there is no Government agency to guarantee deposits.

What is the best Bitcoin Web Wallet?

The best Bitcoin wallet is the safest one, the one that puts you in control of your digital money. Because, web wallets run in your browser, meaning it is prone and vulnerable to cyber attacks.

For me as a long term Bitcoin and Alts investor, I don’t want to compromise my privacy and money. And I also don’t need choose between convenience and security.

What I want is to take control of my money and my future. Therefore, I want a web wallet that I have an access to my private key and never store, not even encrypted in the third party servers.

Based on my requirements, I have found and trusted only one web wallet for my Bitcoin, a Blockchain.com web wallet.

Blockchain.com web wallet review
Blockchain is the first and the most trusted global cryptocurrency web wallet. And also the fastest growing crypto company, helping millions across the globe to have an easy and safe way to access cryptocurrencies.

As of the writing Blockchain web wallet has an over 34 million users, transacted an over 2 Billion transactions across the globe and has the lowest fees in the industry, it’s no wonder Blockchain web wallet is the most trusted Bitcoin wallet. However, I wanted you to do your own research.

Now that you have your Bitcoin web wallet ready, then you need to load your Bitcoin web wallet with some Bitcoin from the most trusted Bitcoin exchange (Cry.

What is Bitcoin exchange?

A Bitcoin exchange is also known as crypto currency or digital currency exchange. Usually, it is operated and own by private company. Exchange allows crypto holder and investor (you) to trade Bitcoin (cryptocurrencies or digital currencies) for other crypto assets or fiat currency (Bank-note).

Like the Bitcoin web wallet, your Bitcoin exchange (crypto currency or digital currency exchange) should be provide safety, security, privacy, and control over your funds and information.

Based on my own experience as Bitcoin trader, here are the list of crypto currency exchange I am using to trade with;

  1. https://www.binance.com/
  2. https://international.bittrex.com/
  3. https://www.cryptopia.co.nz/

I use the above exchange to trade my assets for about 3 years now. It’s not that long but I already experience get scammed to other exchange.