Everything you need to know before investing in Bitcoin

Everything you need to know before investing in Bitcoin



We have seen many incredible technological revolutions throughout the history of mankind. Guttenberg’s press helped bring books to the masses. The telegraph in its time allowed rapid communication over great distances. More recently, personal computers have greatly increased human productivity, leading to the creation of the Internet, digital communications and the advent of citizen journalism, as photos of the main events are almost instantaneously uploaded to Twitter and other social networks through of smart phones, which are small computers. Until relatively recently, however, the monetary system had remained somewhat unaffected by a breakthrough.

Before getting into what bitcoin is, it is important to know what money is and what gives it its value?

Money is either active or generally accepted as a means of payment. Some examples of money are: coins and banknotes, debit cards, and electronic transfers, among others. The value of money is the support given by the issuing entity, government, central banks, currency houses, etc.

The money must have certain properties which are:

A medium of transaction or exchange, an accounting unit, is portable, it is durable in a certain way, it is divisible, one unit has the same value to another unit, that is, you can buy the same with a ten peso coin that you have that with the ten pesos that someone else has, and it is a means of storing value over a long period of time.

Below I leave a table with the comparison of the properties that money should have, and the properties that have the money that we know, gold and Bitcoin.

If you are a lover of gold you will say that if you can store it, but it will have an additional cost to be able to store it and that it remains safe, which if it cannot be easily argued is that it is portable, since for example you cannot send or transport easily say $ 50 thousand dollars from Mexico to the United States or any other country, however, with Bitcoin, you can send that amount of money anywhere in the world in just minutes. And one of the biggest differences that Gold and Bitcoin have against any fiduciary currency is that Gold and Bitcoin are scarce, however, any other currency such as Peso or Dollar is not, central banks and the government can create the amount of new money that came into circulation as they see fit, thus creating the well-known inflation, even in some countries have come to create hyperinflation, if you were not in one you can ask your parents.

I understand that changing the paradigm of cash and having something tangible in your hands to have it in a digital medium that you still do not understand is scary, that is why this article will be very useful to understand this new and innovative financial system that grows by leaps and bounds, and although you have not noticed, you have been moving little by little to that paradigm, nowadays, in the bank you have only a numerical amount that represents the money you own, but what percentage of it Do you have at the same time in your hands?

Did you know that only 8% of the world’s money exists in physical form, the rest is in electronic form?(30 interesting facts about money) Interesting, do not you think? To begin to understand a bit of what Bitcoin is about you have to understand a couple of concepts.


  • Mildred Mill

    I had no idea how bitcoin worked

  • Benjamin Cobb

    Awesome

  • Ruka

    Thanks for the info. The high volatility of bitcoins price does not seem attractive to me so I won’t be investing in them.

  • amy

    Ummm too complicated

  • Janet Graham

    Interesting read

  • Darlene Harding

    Informative

  • Benjamin Reveles

    Hmmm

  • Kathryn Clark Ingersoll

    I hope you give me the diamonds that I was promised for reading this article because I only do business with honest companies

  • Alecsandra Ribeiro Cavalcante

    Interessante

  • Melanie Roy

    Excellent

  • CEM

    Learned something new.

  • Ellen Little

    Informative but complicated

  • Yours Truly

    Learned a lot of from this article.

  • Jane doe

    Learned a lot

  • Darcy Stephen

    Here

  • Yt

    Interesting

  • Ellen Little

    Fascinating

  • Brittany

    This is great info! Thanks for sharing

  • Loraliforanimals

    I have always wondered aboutl bitcoins

  • Donald

    Thanks for the info

  • Nérd Marshall Houle

    That’s good

  • Kristen Clougherty

    Cool.

  • adele

    Hummm ok

  • Julie-Anne Trottier

    Great article

  • Interesting

  • Janet Marie

    Humm

  • kathie

    oh ok

  • Sadie Taylor Bippies

    Very informative

  • Wanda M. French

    Ok

  • Jessie

    Good

  • Jessie

    Good deal

  • Jessie

    Dkne

  • Jf

    Jj

  • Tonya Matthews

    Very imformal

  • Audra Chelise Marie

    Interesting

  • Tina

    Cool

  • Jennifer Keown

    Technology is amazing. I will consider investing in Bitcoin. Thanks!

  • Bo

    Cool

    • Kwistine

      Yep

  • Colld

    Cool

  • Katty

    good

  • Jack

    GOOD

  • Kwistine

    Hello

  • Mia Rue

    Very interesting, technology is rapidly changing and this is an investment that seems to have an additional advantage financially.

  • curtis dreger

    Good info

  • Carlos Robinson

    Advice

  • Jhon

    Nice

  • Kwistine

    Very interesting, Now I can say that I know how bitcoins work

  • Patrick

    Very informative, thank you!

  • Pamala Plechus

    Very informative.

  • Rime

    Interesting

  • Janet

    Now I think I understand. Good article.

  • Gina Q

    Very interesting

  • carol

    Great article

  • Remma

    Interesting

  • Remma

    Very interesting

  • vinooo

    rshdhdgr sgdgdgd ddvd

  • Skylar

    Good to know, been hearing so much about Bitcoin except how it works exactly

  • Kim Oliva

    Thanks for the info, although I find it very risky.

  • Chandra Hicks

    Interesting article

  • Annettw

    Very interesting reading. I’ve seen headings regarding Bitcon in magazines, wondered what it was all about, & I actually passed this info. on to my husband. Thank you

  • Maiah Clark

    Wonderful article

  • Lowly Carb

    Good info

  • Patricia Hughes

    Great article

  • Andrée Naud

    First I hear about it

  • Lora Stone

    Good info

  • Jp

    Great

  • LaTonya N Rencher

    I always wanted to learn the in’s and out’s of bit coin . Thank you for your very useful information.

  • Nads La Tannante

    Cool info

  • Shiny

    Greag

  • Beatrice Coleman

    Bitcoin article completed reading.

  • Carolle Moosaie

    Good to know!

  • Judith Wash

    Thinking about investing

  • Kim

    Always interesting to learn where to invest

  • Xori

    Intersting investment idea

  • Katty

    good

  • Juan

    Real interesting. Thanks a lot.

  • Judy Sparks

    Interesting

  • Shirley

    Great to know

  • Val

    Intriguing! It’s always good to have knowledge of what’s new to invest in and/or look out for!

  • Cathy Flory

    Interesting

  • Donald

    Looking for my diamonds

  • Czee

    Good info

  • Randy Smith

    Awesome

  • Quayshana Alexander

    Interesting

  • Denzel Jolliff

    Not sure about this, but it is interesting.

  • Kim Winkelman

    It’s always interesting to read about bitcoin

  • Judy Sparks

    I learned a lot with this article.

  • Darlene Daniels

    Good info

  • Luna Mccoy

    Not for me but interesting read

  • Celeste Dias

    Still like real coin

  • Ellen Little

    Great article!..ALOT of information to think about!