If you have not already heard about Bitcoin, and other crypto currencies, then its about time that you get yourself up-t-date. There is no denying that Bitcoin has become a valuable digital asset, even an acceptable currency to some degree. In fact, Bitcoin’s total market cap is gigantic, and hovers around $1 trillion today. Ethereum, the second largest crypto coin and the backbone of the Defi universe has a market cap of $500 billion, give or take.
However, the crypto market has been anything but calm, and the volatility looks like it will continue into 2022. So, is Bitcoin a good investment? Let’s look at the pros and cons of Bitcoin, and how it might be in everyone’s life soon enough.
What is Bitcoin?
Bitcoin is the decentralization of digital money, that doubles as a workable technology, you can build on. Confused yet? Don’t worry we plan to break it down so anyone will understand. Unlike fiat money, which is our current financial system in the United States, and most of the civilized world. But what is Fiat money? Simply put, fiat means by decree, or in other words because someone ion power says so. It reminds you more of medieval times when kings ruled over entire continents. But this system is riddled with problems including fraud, inflation, corruption and more.
Bitcoin solves much of these issues, because Bitcoin is decentralized, and no central authority controls, or can manipulate its value. Plus, Bitcoin processes transactions on its public ledger, which simultaneously updates on thousands of networked computers, simultaneously.
The reason Bitcoins are valuable is because it is a finite asset, and only 21 million Bitcoins will ever be mined, and we are already 90% done mining them.
Is Bitcoin a Safe Investment
As with any investments, there are inherent risks, and Bitcoin is no different. The volatility in the market scares some investors away. Still, Bitcoin is the number one crypto currency, and more and more people are becoming comfortable purchasing it.
If you are not an experienced investor, then you should consult a professional for advice, or better yet, learn everything you can about Bitcoin, and crypto coins in general. This way, you can make the best investing decisions, that are based on your financial needs, and long-term goals.
Where to Buy Bitcoins?
There are several places where you can safely purchase Bitcoins today. There are centralized exchanges that offer crypto coins for sale. These exchanges will need to verify your identity and will report your earnings and losses to the Feds. Some examples would be:
- CoinBase.com This is the largest online crypto exchange, and it is centralized and governed strictly.
- Crypto.com Another large centralized exchange that sells Bitcoin, Ethereum, Solana, Cardana, and much more!
Or you can buy Bitcoins and other crypto currencies on decentralized exchanges, where you will be responsible for reporting on your own behalf. These exchanges will require your wallet ID and nothing else to purchase coins on their platform. Some examples would be:
No matter where you decide to purchase Bitcoins from, it is important to know how to safely store your crypto coins.
What are Bitcoin Wallets?
Bitcoin wallets are just like your bank account number used to processes transactions on your behalf. This number is unique to your account and will be the way you interact with the blockchain, via an exchange of your choice. Unlike online, centralized exchanges, Bitcoin wallets can store your coins offline and away from hackers, fraud, or corruption.
It is important to distinguish the private Bitcoin wallets like Trezor, or Ledger, to the centralized exchanges wallets you can use but not own.
If your wallet is cold storage and you use it to hold your crypto offline, you won’t need to worry about protecting your investments, because they will be safe for years to come.
If you buy Bitcoin from a centralized exchange, then your coins are held within the exchanges wallet and you get access to your coins, via the account your approved to use on their exchange. But these coins are really owned by the exchange, just like the cash in your current fiat bank account.
Final Thoughts Today!
Now you can see why Bitcoin is such an attractive investment option for people looking to have more control over the wealth and lifestyle. When you own crypto coins like Bitcoin, the value will go up over time, and you might be able to show a decent profit by holding the coins privately.
No matter how to choose to buy Bitcoins you should know that the market is poised to grow exponentially in the coming years. If you haven’t got into the crypto coin game yet, carefully consider what your financial goals are and how Bitcoin can play into your overall financial goals in 2022.