Bitcoin is an electronic currency that was insignificant till 2017 and started to get famous after the Great Bitcoin Bubble in 2017. Investors from emerging and developed markets were aware of bitcoin after that. You can use some payment networks for exchange. Mining bitcoins and accepting bitcoin as payment have their perks for traders. The mining equipment here is a computer system.
The founder of bitcoin, Satoshi Nakamoto, realized a need for a cryptography-based electronic payment gateway. He ends up creating a decentralized digital currency that you can exchange without government intervention. $38,439.10 creates a new price floor for Cryptocurrency. Opportunities to invest and make money are increasing until the next Bitcoin bubble growth. Then, there is a chance of growth in dollar value that can set your life financially. We will learn how to make money with bitcoin and learn about strategies for making money with bitcoin and making a career in the digital economy.
Bitcoin And Its History
Bitcoins are computer files saved in digital apps, and these coins are not physical assets, so photos on the website are just a hypothetical representation. Details for a bitcoin transaction are saved in a public list called Blockchain. Form of payment that uses blockchain technology is called Bitcoin. The government or any organization can’t control these transactions. Instead, nodes govern and run bitcoin globally. The smallest unit of bitcoin is Satoshi, with a value 0.00000001. Bitcoin is generally used for service and goods online. Cryptography is used to make currency safe.
Bitcoin was founded on 31st October 2008 By Satoshi Nakamoto. It’s a peer to peer digital money system. In the initial years, Bitcoin was unknown and made a lot of financial blunders. Laszlo Hanecyz made the first bitcoin transaction by ordering two Papa John’s Pizza and paid 10,000 bitcoins for delivery. The incident related to the first transaction was as famous as Ronald Wayne selling his 10% stake in Microsoft for 800$. Now, the value of that stake is around $90 billion. In 2011 Mt. Gox entered the scene and made bitcoin mainstream, and in 2014, Bitcoin was made a legit currency in japan. Popular culture series like Mr Robot had Cryptocurrency. Bitcoin is the Financial system’s future, and the cryptocurrency sector has existential threats. Digital currencies are still unknown. Cryptocurrency represents a new beginning in finance. World leaders are jumping on the bandwagon and Trying to fit crypto in their views about world economics. Facebook plans to launch Libra (Cryptocurrency) later this year, and Facebook will directly control this Cryptocurrency.
Bitcoin Bubble And Its History
Other financial bubbles in comparison to bitcoin felt like a typical day on the NYSE. The bitcoin price dropped to the $11000 mark last year and climbed back to the $39,000 mark this year. However, the bitcoin bubble caught everyone off guard as there was significant growth in bitcoin ($28,000) from last year to this year.
Bitcoin And Millennials
Even after the biggest financial bubble, The loyal fans of bitcoin believe in Cryptocurrency. The generation with the most users, miners, and holders are millennials. The first tech-savvy generation is millennials, born before the mid 20th century or the digital age. Millennials got phones while growing up, and they know how to make money with Bitcoin. More than 60% of the workforce is millennials. Millennials buy a house and start a family in the current phase of life, and that’s why bitcoin will play an essential role in future as retailers will accept bitcoins, and there will be massive growth in the network. However, government and general acceptance are stopping the growth for bitcoin currently. Bitcoin can’t be a reserve currency without government permission. Reserve and national currencies serve as a medium to collect tax from the public, and the government won’t accept bitcoin for payment because of its decentralized nature. That’s why bitcoin is a bit of an outlaw in countries, but Millennials are comfortable with bitcoins. If you know the use, then you can pay and receive money for anything. With bitcoin, You get a new lease on life even if you are a loan defaulter.
There must be a question in everyone’s head that is Bitcoin money? But, unfortunately, there are few criteria like using it to pay debts, Exchangeable, mobile, and lasting value.
The definition fits if you compare it to the old form of money, Gold was tough to transport early but now has good value, and it’s mobile, can be divided and exchangeable. The dollar comes up short if we compare it on the same criteria. 96% of purchasing power was lost when the Federal Reserve arrived. That’s why the fiat dollar doesn’t have good value for investors.
The dollar is a leading reserve currency that control’s world’s credit system. The dollar is used to settle the international debt. The dollar is accepted as money because debts and taxes are paid through it. Bitcoin is exchangeable, and you can divide it and accept it as an exchangeable medium. However, you can lose bitcoin and bitcoin wallet keys quickly. It’s hard to store the value of bitcoin as bitcoin is too volatile and easy to hack into a wallet.
Money has evolved in the age of fiat dollars, buy bitcoins doesn’t qualify to be sound money.
Make Money with Bitcoin
The basic concept of bitcoin is clear, so now we learn how to make money with Bitcoin. There are some strategies outlined that will help you learn about how you can earn money.
Pick a strategy that you like and execute it. The Internet has plenty of information online to help you expand the strategy mentioned below. The most crucial thing is taking action. If you take action, then you’ll get ahead and get a spot in the digital economy of the future.
“HODL” and buy
When people think about buying Bitcoin, they imagine the huge profit they will make after selling coins for dollars as the price peaks. This strategy is called buying and holding, and this is a popular method used by gold investors. For some reason, investors will allocate the bulk of the share in their portfolio to stocks and bonds and t 5 to 10-percent to physical gold bullion as coins or bars. The believers of bitcoin think that buy and hold can be applied to Bitcoin as well. True believers in Cryptocurrency will glorify the buy and hold strategy because it’s the reason for stable bitcoin.
It’s true in a way. As we talked about the dollar as money in the previous section, participation and belief from the public are required to give money any value. But, that doesn’t mean that you have to follow a buy and hold strategy to validate the Bitcoin market.
If you hold bitcoin for the long term, then you will be termed “HODL’ers,”.
But the mistake “HODL’ers,” make is that Bitcoin can’t be considered as a store of value.
People get surprised when the price jumps to $20,000 and then falls to $3,300. But, of course, holding in that period will be acceptable only if you buy bitcoin at less than $2,500. But what if you enter at $10,000? Then you might have a severe financial loss.
Still, If you want to stick with the strategy and HODL it for the long-term, then you might get returns. Bitcoiners holding from 2009 are Happy. However, the point is that they wouldn’t be cashing the coins soon but instead, use Bitcoin as a store of wealth for the long term.
Bitcoin mining is one of the best ways to earn money with Bitcoin. How to make money Bitcoin by solving cryptographic puzzles and adding blocks to the Bitcoin Blockchain network.
There are two types of Mining:
- Personal Mining- Mining Individually is called personal Mining. After Bitcoin’s mainstream success, It is one of the hardest Cryptocurrencies to be mined. Bitcoin supply is limited compared to its demand. Hence, you might struggle to make significant profits because of high electricity and maintenance charges.
- Cloud Mining- Cloud Mining is the most popular option among individual miners as There are no high electricity bills and maintenance bills in this Process. There are one time charges for the contract, and you don’t have to install extra software and hardware for this Process. That’s why it is used as an alternative for personal Mining as you receive your fair share without bearing heavy charges.
Your earning is based on your chosen plan, and the electricity bill will generate where the cloud mining service is established.
Only knowledge and proficiency is required before you jump into it and put your money in mining companies.
Note: Always verify the credibility of the cloud mining company before investing.
Payments in Bitcoin
Today’s businesses started to accept Bitcoins as payment in exchange for goods and services. If other companies do it, then why not? So do it, Accept payments in bitcoin.
The Process to Accept Bitcoins as payment is straightforward. For example, if you run a business, you can accept Bitcoins by putting a small signboard at your shop. Whereas, and if it’s an online business, Put a banner on the website’s homepage or use payment merchants. In both ways, having Bitcoin as your payment will give new opportunities and perspectives.
Payments are secure. It’s the Best thing about it and the Process of payments is fast, and you can receive payments from anywhere without hassle. The only thing required is a bitcoin wallet. Thus, it eliminates third parties involvement payments and helps to avoid loss.
Earn bitcoins by being an affiliate
You can use social media platforms to earn. You can make money by becoming an affiliate for Bitcoin or any other cryptocurrency company. You have to promote their services, increase traffic on their website and get commission after each sale. An increase in customer base and sales will decide the amount of commission you will get.
You have to influence your social media followers to buy products and services. You can also earn by conducting affiliation programs.
The thing you need to take care of is that you sign up with the affiliate program. You also need to share links and websites while promoting their products and services.
The best part about transactions in Bitcoins is that you don’t need validation. Transactions process smoothly, and there is no interruption. So offer loans to others and charge interest rates.
It’s bitcoin making money for you rather than you making bitcoins
Some websites help you with lending services. It’s essential to have a good lending source; else, you might lose all your Bitcoins. Reliable lending platforms offer 15% p.a as the interest rate.
Indeed, micro earnings are not enough to change destiny. Still, the source of income is reliable and helps you manage your daily expenses. For example, suppose if you are working on the legit PTC website that pays you for opening websites, clicking on ads, watching videos or playing games. So you will receive payment in bitcoins here.
Even though the payment on the website is not high, it is still one of the fastest means to earn money. Some websites pay you in Bitcoins for finishing tasks and filling surveys.
Trading in bitcoin to make a lot of money is a common option. Especially for good traders means those who read trading charts, assess external factors and take risks.
As soon as traders see a jump, they are selling it to generate profits. You can trade 24×7 in Bitcoin.
There are four trading strategies to invest money in Bitcoin:-
- Day Trade– Also known as intraday trading, investors buy and sell positions in a single trading day. The main advantage of day trading is that you don’t need to pay overnight charges for holding(holding) positions.
- Hedging- A trading strategy in which you try to minimize risks by taking a position you have already purchased. This type of trading strategy is used when the market is moving against you.
- Trend Trade – Those who practice trend trade choose trades according to current trends. For example, there is a bullish trend, you will invest for the long term, and if the trend is bearish, you will have short-term investments.
- HODL (Buy and Hold)- A strategy where you buy and hold and wait for prices to spike. This trading is for the long term, and you need a lot of patience with this.
Threats to Bitcoin
Investing money in bitcoin has its own risk. You must understand the types of risks involved with digital currency before putting dollars in digital tokens. There are multiple risks in Bitcoin. We will talk about three risks that can damage the future of Cryptocurrency and can damage your profits.
The first problem is that bitcoin has a technology that is used to run the blockchain. Google successfully manufactured quantum computers. A 53-qubit machine is the first one that will have processing power doubles with each new generation.
In that case, we only need three or four evolutions before it cracks 256-bit encryption. If It’s true, then quantum computers will allow hackers to take down the blockchain system easily.
Computing power surpasses the blockchain capabilities gives an idea that Bitcoin might become obsolete shortly. It’s still unclear, but if another cryptocurrency using quantum computing arrives, it will replace it.
Another risk to Bitcoin’s future is financial fraud. For example, Twitter user @bitfinex’d covered the 2017 Bitcoin bubble effortlessly. And @bitfinex’d believe that tether was the only reason that the price of Bitcoins skyrocketed during the bubble.
“Stablecoin” that traders use to escape the volatile market period is called tether. You sell Bitcoin exchange of tether at 1:1 value and wait for the price movement to settle. Then you exchange tether for Bitcoin and continue trading.
Tethers pumped billions of dollars into the market without any reserves. This action results in pushing the market higher. The market price of bitcoin collapses because tethers were not issued later.
Various institutions backed what @bitfinex’d claimed as they thought that bull-run was one of the biggest financial frauds. But, unfortunately, Bitcoin never comes under a regulated market. That’s why the SEC struggled to make a case and hold owners of the tether company responsible for their actions.
The final threat to Bitcoin is the Bitcoin whales. More than 80 per cent of bitcoins are in 20 per cent bitcoin addresses. There is a massive shift in pricing when whales buy or sell bitcoins, Example:-Mt. Gox.
This trustee sold thousands of bitcoin in the first quarter of 2018. The worth of trustee bitcoins were $312-million from January to June 2018. Some analysts believe that this event sparked a sudden drop in the price of bitcoin.
Fancy expectations with bitcoin trading may lead to disappointment. The best part of trading in it is that you can begin with a little money in your wallet. Before the investment, you should initiate your research in the market. You sell a percentage of bitcoin when there is a price surge. Bitcoin miners can take the recourse of investing their programming acumen to earn bitcoin. Long term bitcoin investments generate a lot of profit. Selling and purchasing bitcoins, and you only need a bitcoin wallet to sell or purchase bitcoin. Trading bitcoin is one the most popular ways to make money with bitcoin. Lending bitcoin generates a lot of money because there is 15% interest given by websites that support lending services. You can promote bitcoin and earn money on social media and join their affiliate program. There are PTC sites that pay you for opening specific sites and ads and while playing games. Overall there are many options to earn from bitcoin, but there is risk involved with it, and you should take care of it. There is a threat to safety as computer technology evolves, but the T1 market and ETFinance are safer platforms to earn money from bitcoin.