You probably had heard about cryptocurrencies. Perhaps the most resonant name you’ve heard in this sphere has been “Bitcoin.”
Also, you might notice how easily people got rich just by investing in this new big thing. I bet you´re curious to know how people turn $100 into $10 000.
Tempting, right? But is it too late?
Well, It depends.
But at the end of this article, you will figure it out.
What is Bitcoin?
Before I directly answer this question in a technocratic and financial perspective, I truly believe that it is necessary to make a temporal, economical and social framework.
First, it is important to include the Internet in the equation.
As we all know, the Internet has created a new economic paradigm and new forms of digital commerce that has revolutionized the way people perceive and interact with money.
However, between 1998 and 2008, there were several attempts and proposals to create digital money. All of them have failed.
In October 2008, things began to change a somewhat and Bitcoin gains prominence. For many, the catalyzing factor for the rise of Bitcoin was the bankruptcy of the Lehman Brothers bank in the United States of America. With the bankruptcy of Lehman Brothers, a giant scam was uncovered, and naturally, people began to question the function of traditional bank institutions for not fulfilling their role.
And it was from there that the global technological community started to propose alternatives in order to solve the financial problem, associated with the 2008 crisis that affected the whole world. So, the epicenter of all this technology was the bankruptcy of Lehman Brothers.
Given all these circumstances, what is thought and proposed is an alternative system that would solve 2 essential problems:
Remove all intermediaries in the transaction processes;
And not allow the same payment to be used multiple times and multiplied by the financial system.
The idea was to create a currency and a form of value to be transacted in digital purchases, that could take power away from centralized forces, such as the bank and the government, and distribute it to an unlimited number of people worldwide.
That said, the main problem that Bitcoin solved was the population’s loss of confidence in banks, taking away all the power that had been incorrectly applied until then.
Why is Bitcoin so Valueble
The intrinsic value to this currency lies in the simple fact that Bitcoin is not manipulable. The entire system and structure around the technology is supported by advanced artificial intelligence.
On the other hand, when we talk about cash from the gold and silver perspective, there is an emotional and biased component associated with it. In other words, a human component. And this is extremely negative because it leaves people’ money exposed to corruption (impartiality and trust) and even to the mere fatigue of accountants or banking professionals who can, of course, make mistakes.
There it is, the human component.
And this is something that is IMPOSSIBLE to happen in Bitcoin or any other cryptocurrency as it is supported by artificial intelligence which in turn is unbiased and unemotional.
Another factor that offers value to Bitcoin is the fact that it is non-inflationary. In other words, due to the limited number of coins, it never looses value.
This does not happen with the euro or dollar, which due to its unlimited amount, ends up losing value as a result of inflation. Have you noticed that 1 dollar or 1 euro 20 years ago, allowed the individual to obtain a greater purchasing power than now, in 2022?
How Do I Buy Bitcoin?
The process is simpler than it sounds. The first thing you have to do is STUDY about the world of cryptocurrencies. Research, read books, look at the topic from different points of view, i.e. study the advantages and disadvantages.
Within the platform you will find several cryptocurrencies, such as Bitcoin, Ethereum, Solana, Vechain, Polkadot, Cardano, Dogecoin and Shiba Inu.
From there, and after a thorough study of cryptocurrencies, you simply buy (in euros, dollars or other) the portion you want. But never forget that you should not invest more than you have. No investment is guaranteed. No matter in what it is.
The second step is to acquire a wallet. And this step is very important. Many people don’t use them, preferring to leave their investments on the Exchange, and this is a mistake.
Although Exchanges work daily to improve their platform, there is the possibility of a security breach. And this is one of the great advantages of wallets. Owning a wallet means having your investments secure.
There are 2 types of wallet. hot wallet and Cold wallet.
Hot wallets allows you to install on your device and transfer coins from the exchange to the wallet. Most of them are free. In this article, I provide a list of them.
Cold wallets, on the other hand, are physical wallets, which fulfill the same function with the difference that they are physical and 100% secure. The best physical wallets on the market are Trust wallet and trezzor.
The 3 Best Exchanges to Buy Crypto
What is the bad part of Bitcoin?
The bad part about Bitcoin is that you have to be responsible. The money is yours and yours ONLY. Which means you can’t share your codes with ANYONE, nor lose your wallet access data. In case you make any of these mistakes and get stolen, no one can intervene and most likely you will not get your cryptocurrencies again. So if you want to invest, don’t trust ANYONE.
Before investing in Bitcoin be aware of this…
Another important aspect of wallets is that you have 2 codes, public and private. The public code is the one you use to make a transfer to another person.
The private code is to access your wallets. It is important to note that this code should never be shared with anyone. Anyone with access has the ability to access your wallets and take all your investments.
Remember, in the world of cryptocurrencies there are no intermediaries. Any entity that assumes itself as such, asking for access to your secret keys is a scam.
Another factor to take into consideration is that if you want to make a transfer or purchase in Bitcoin, it is mandatory not to make a mistake when entering the public code of the wallet.
Unlike what happens with the Euro or Dollar, where if you make a mistake you can correct this error, with cryptocurrencies this does not happen. If you send to the wrong address there is no way to get them back.
The security of your bitcoins ONLY depends on you.
Final question: Can I get rich with Bitcoin?
It depends on how much value you invest. If you think you´re going to turn into a millionaire by investing $100 you´re completely wrong. There was a time when you could invest $1 and become financially free. But those days are over.
Can you become rich with cryptocurrencies in general? YES, you can. And it is really easy if you know the right coin to invest in.
But just like Bitcoin, those days will end up in a near future.