Bitcoin Cryptocurrency For Beginners 2021

Introduction 

Over the past couple of years, bitcoin has been one of the most talked-about investments. It has made a lot of people rich as well as a few people poor. The reason is they’re uneducated about the investment that they’ve made and that is the whole point of this article named Bitcoin Cryptocurrency For Beginners 2021. This article will give a beginner’s guide to Bitcoin Cryptocurrency so that you’re educated before you choose to invest.

We’re going to go over the four key questions related to bitcoin in this article.

1. What is bitcoin and what makes it so powerful?

2. Is bitcoin going to be the future cryptocurrency?

3. How to start your investment journey in bitcoin?

4. Is bitcoin a smart investment to make?

1. What is bitcoin and what makes it so powerful?

Bitcoin is the biggest form of cryptocurrency. It is the most well-known one and it is the one that has been the most adopted. Now to know cryptocurrency you first need to figure out what money is?

Money is just an agreed store of value accepted by everyone as a form of payment. Now the obstacle with money is that it is centralized, it is controlled by the governments and the central bank. This means with the dollar or any other currency you’re entirely at the whim of their choices. If they choose to constantly print money and devalue it, your hard-earned money in the bank gets eaten away by inflation. If you decide to make transactions again you’re often hit with high charges.

The great thing about a cryptocurrency like bitcoin is, it solves all these problems because it is not centralized. It is decentralized you don’t just have to rely on one central bank’s ledger of keeping track of everyone’s money which none of us can see.

Every computer that takes part in the system retains a copy of the ledger. So it’s impossible to take down the system because you’ll have to take down thousands of computers who keep a copy of the ledger. So it’s safer. Everyone can see it’s transparent. No individual central authority has control over bitcoin and arguably the most important is it’s protected against inflation. With bitcoin, there are only 21 million total coins in the system. So this makes bitcoin powerful.

2. Is bitcoin going to be the future cryptocurrency?

Cryptocurrency solves all of it but that brings us on to the question, What normally happens with a currency. In general, one normally rises to the top and takes all of the market shares. For example with search engines, you don’t know Cuil, AltaVista, Infoseek, or the web, you only know Google.

Cryptocurrency will dominate the entire section as Google does in the search engine sector. Bitcoin can be the Cryptocurrency of the internet. At the end of the day, money is just about mass adoption that is about everyone agreeing that it’s an exchange of value and right now bitcoin is the closest to getting this done.

Most people who haven’t heard of Litecoin, Dash, Monero, ripple but you ask people on the streets if they know bitcoin and they likely do.

3. How to start your investment journey in bitcoin?

Essentially there are just three steps that you need to go over to buy bitcoin. 

Firstly, you need a wallet just like with cash you need a wallet to put it in. It’s the same with bitcoin except for bitcoin is a digital wallet. So you use the wallet for sending, receiving, and storing bitcoin. There are two types of wallets that you can get, one is the software wallet which can be run on your computer or mobile device. A software wallet is better easier with just small amounts of bitcoin and the second one is a hardware wallet, it is the device that connects to your computer and is considered a much safer option. 

So once you have the wallet you need to buy some bitcoin and you do this through an exchange. Some of the more well-known examples of these are Gemini and Coinbase. 

Finally, once you’ve purchased the btc through an exchange. All you need to do is withdraw it from the exchange and send it to your wallet.

Official website of Bitcoin.

Open your Free Crypto wallet on Wazirx

4. Is bitcoin a smart investment to make?

I have personally been investing for a long time now and the best way that you can think about investing is through the lens of risk and reward.

Let’s start with the risks of bitcoin, there is a chance that you lose everything. Bitcoin is a currency that is 100% technology-based and it’s reliant on people eventually adopting it and using it as a currency. As time goes on more and more people are learning about it, using it, and adopting it but there is no guarantee that in the future they will continue to do so. If everyone decides to sell it and not think about it anymore then your investment goes down. But then on the other hand the potential reward for bitcoin is huge its reward is way higher than the risk. 

So let’s think about the reward. Gold is almost similar to BTC in a lot of ways. Although it’s physical it doesn’t have much use other than a store of value. It can be mined, its supply is limited, it is used as a safety hedge from an economic crisis just like bitcoin. 

Bitcoin’s total market cap is around 600 billion dollars that’s around 20 times smaller than gold. If bitcoin were to grow to the same market cap as gold which a lot of experts think it could, we would see a 10-30 times return on our investment. I see bitcoin as an investment because there’s a lot more potential to gain than you have to lose. If it was to lose everything or double your investments it would be even but the potential is a lot more than double so you’re on the right side of the risk-reward equation.

Also Read: How to get your first freelancing project ?

Conclusion

Remember the risk is that you could lose everything, so you only invest what you can afford to lose or perhaps maybe more but play this investment smartly. Nevertheless at the end of the day bitcoin is superior to the money that we’re currently using and all of the problems that come with it.

Think about tesla a few years ago people were saying that tesla is a joke of a company and now it’s the biggest car company in the world. Why because it had superior technology and was creating a better version of transportation. It’s the same thing with bitcoin, it’s just better overall. Bitcoin doesn’t rely on any one institution. So it may not be the dumbest idea to have some investment in it, your future self might thank you for it and this article Bitcoin Cryptocurrency For Beginners 2021 will surely give ideas for a safe investment.

Thank you for spending your quality time. Happy Investment.

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