Mar 27, · Bitcoin adoption is at an all-time-high with new merchants accepting the digital currency on a daily basis. This is a lot to absorb so let’s dive into each one in a bit more detail. Blockchain scalability issues are being solved. With a limit of around 5 transactions per second, it was clear from early on that Bitcoin’s blockchain would not. Jan 15, · Bitcoin has none of these things, and even safely storing it is difficult. Bitcoin exchanges such as Mt Gox in Japan, Bitfinex and various other wallets and exchanges have been hacked. Aug 15, · Top 7 Bitcoin Scams. There have been (and undoubtedly will be) nearly countless bitcoin scams, but these frauds make the list of the top 7 worst bitcoin scams to timberlandschuheherren.de: Anne Sraders.
Bitcoin is screwedSo you're thinking about investing in bitcoin? Don't | Bitcoin | The Guardian
It is ironic because the economy in Venezuela is fucked, but almost every crypto-service or novel online pay modality is a huge hit in Venezuela. So it's not clear to me that Bitcoin is a major player even in Venezuela. LatteLazy 5 days ago. I'm not OP. I looked and Chainalytics claim Venezuela is world number 3 in bitcoin use. But it's not clear what they're basing that on.
My very limited understanding is that they can't directly see the country of origin of a bitcoin transaction. So they must be relying on figures from exchanges or apps?
Does anyone know if you can tell country of origin of a transaction request? Maybe the IP sending the request is public to the network? StanislavPetrov 4 days ago. I personally know hundreds of mostly very poor Venezuelans who absolutely depend on bitcoin and other crypto currencies to survive. The people I'm personally familiar with eke out a few dollars creating content on platforms like Hive and Steemit, trade their alt crypto for bitcoin, pool it crypto together, and have it sent to Venezuela in small bundles where they collect it and use it to supplement their very meager incomes.
You personally know hundreds of people there? That seems like quite a lot. How did you meet them? Also, I'm not sure I'd call that significant Bitcoin adoption if their only use for it is as an intermediary to exit a different cryptocurrency. StanislavPetrov 1 day ago. As an active member for years I've chatted and interacted with them for years and gotten to know many of them quite well. Why is that so? As far as I'm concerned as an early adopter of bitcoin and other crypto , Bitcoin's primary use has always been to fill the void when government-sanctioned currencies and financial systems fail.
Without Bitcoin these poor people would be unable to cash out the fruits of their creative endeavors - its absolutely critical. Different people use Bitcoin for difference purposes, but none of these purposes is inherently less legitimate than another. How do you deal with the ongoing devaluation of the bolivar currently?
There's no good answer, period. The government needs to be replaced. This is the false promise of bitcoin. As long as the government needs to be replaced you have much bigger problems than the currency. As soon as the government is replaced, you no longer have to worry about the currency. Bitcoin always has been, and always will be, a solution in search of a problem. Forget Venezuela for a second and ask yourself how Bitcoin is helping the North Koreans. No one claimed that Bitcoin is useful in NK so I don't get the point of the question.
GutenMFRea 4 days ago. They print USD. And perhaps buying methamphetamine -base-products from China or whereever is more plausably deniable or less WONG or whatever than f around with chinese bills.
Whatever they do, they're doing all kinds of shit. And they print USD, or has, and, everything else they do isn't really great, all the time. They counterfeit USD and probably tons of other shit. All the 'coinage' in paper-form from everywhere around the country or the world probably, bar the 3d and biometric and advanced shit probably.
It's all shit over there man. In terms of the governance, governing, it's not good! The point is that yes, an authoritarian government can definitely just shut down bitcoin, so authoritarian government resistance is not a feature of bitcoin. Sorry for late answer. In case you actually need to just save the money, you just trade it it takes barely no time for USD and hold the usd either in cash or in some usa bank most people have access to them or paypal.
So, the unofficial "forex" market is always there.. So yeah, hyperinflation might be solved really easy whenever we actually get a new goverment reply. Thanks for this.
Given the level of ungrounded Bitcoin hype that's always going on, I'm not surprised to hear it. Once again, Bitcoin turns out to be mainly useful for light financial crime. Most Venezuela Bitcoin statistics are based on information published by localbitcoins. Their accuracy is much lower than their reputation Venezuela is often painted as a "Bitcoin solves this" poster child. It's useful for buying USD in Venezuela. If the sender is using his own Bitcoin node, the sender's IP is known only to the other nodes the transaction was broadcast to.
If the sender is using a third-party service, that service records the IP addresses of its customers in the same way as any Web site does, just as my IP is known to ycombinator when I submit this comment reply. AlexCoventry 5 days ago. In this kind of setting, where the transaction is illicit, you wouldn't go through an exchange, you'd publish the transaction directly to the bitcoin network, and organizations like chainalytics do track the origin IP addresses.
That makes sense. Not to criticise but Isn't the IP of a transaction initiator being public a bit of a design flaw? Is it just assumed that users will obscure their own IPs vpn, tor, etc? Transactions are relayed to all the nodes in the network, not broadcast. That means when a node sees a transaction from another node, it's impossible to know whether the node was the originator of the transaction, or was merely relaying it from another node. AFAIK bitcoin core also has some mitigations such as delaying broadcast to a subset of the nodes, to make it look like your node wasn't the first node to learn about the transaction.
I implored the bitcoin developers to add this functionality about five or six years ago for this exact reason. That said, someone who isn't in a position to monitor the L2 network can't know if you are initiating a transaction or simply rebroadcasting it. Venezuela aside, a lot of these LatAm countries have some type of capital controls in place.
It does literally nothing to solve the problem more broadly. Of course the government could shut it off in a heartbeat. How many North Koreans does Bitcoin help? You are all missing the the trend over the last 7 years for bitcoin is to create a digital asset that is a store of wealth.
To say bitcoin is a payments system in the sense of cash is to miss the executed tech roadmap where cheap one off transactions is a secondary concern not bitcoin core's. Listen Saylor talk about MicroStrategy's investment in bitcoin. He is very clear that is a store of wealth and appreciating asset on the books, not a payment rail for MicroStrategy subscription base. Currency has more than two functions. Transferring wealth is not the same as paying for goods, and storing wealth is not the same as holding a speculative asset class.
Bitcoin is volatile. Holding it is more like holding gold, not USD. Bitcoin is very easy to move across borders. Moving it is much more like a bank transfer, than paying for a pizza. Saylor sounds like he got taken by the Bitcoin euphoria. The point is the commenters here on this thread listen to too many youtube crypto channels for an accurate analysis of what bitcoin is and wants to be. Yeah but, why BTC specifically? Taek 5 days ago. Bitcoin has the most infrastructure surrounding it.
And Bitcoin is the most careful to make life easy for infrastructure providers. Eth is very challenging to operate securely. Breaking updates are frequent, often with little warning. Bitcoin hasn't changed in many years, and new software updates are optional, and don't require you to write any new code or change how you operate.
Most other cryptos suffer from the same challenges. Eth has more features and flexibility, but for the explicit use case of sovereign money, Bitcoin really stands in a class of its own.
Scoundreller 5 days ago. ButtSpark69 4 days ago. Care to give some examples? Are you perhaps referring to some specific dapp built on Eth that you don't like? Breaking updates are not frequent, there's never been a breaking update on the ethereum blockchain.
Bitcoin changes all the time e. Lol well you should probably stop using binance and centralized exchanges generally. You have actual permissionless dexs trading on Ethereum wallet to wallet. Literally, no bullshit in between where you don't have to worry about the CEO of the shitty CEX you're using taking a powder for 33 day's.
There's nothing permissionless about bitcoin infrastructure, it requires custodial counterparties to trade hands.
ETH and all the many tokens do not. Economics aside, that's probably the most bearish development for bitcoin You can turn your nose and say ethereum dapps all have that admin key smell but things like uniswap, starks, the Dai stablecoin, yearn are dope as hell and I'd think worth a looksie reply.
I love Ethereum and I am an industry professional. Remember the DAO? Fire feeds on obstacles homie reply. The DAO was a classic example of crypto being trustless for thee but none for me thanks. There's not a good reason.
Of all the cryptocurrencies, BTC is one of the worst for this use case. Of course there's a good reason. BTC is much, much easier for the Indonesian person on one side of the contract to purchase with their local currency, and much, much easier for the Russian person on the other side of the contract to liquidate into their local currency.
Another fellow Venezuelan here, this guy points are actually wrong and he's just using the momentum to prove some point related to bitcoin that is not true Before hand, I would like people to know that the current VES:USD rates are the following: - Official rate: 1. It doesnt really matter.. As for the venezuelan bolivars parts, its always done in venezuelan banks. What the poster here says in point 1 its wrong, you can use W. U, MoneyGram to send money to Venezuela, it uses the official exchange rate, thus, you don't have to go to colombia to send money to venezuela, remitances using those services are working online they deposit to your bank , there is also fully operational exchanges like zoom casa de cambio, that will take remitances from different companies worldwide.
As I say, venezuelans do not need bitcoin, they could trade even hello kitty online coins or whatever any other method that allows them to send some value worth. Directly, they just use Zelle or cash, some others use paypal or whatever they want. So, bitcoin doesn't really benefits Venezuelans, the only thing that benefits venezuelans is the localbitcoins escrow service, but this is not because its cripto or because its bitcoin, it's just because noone else offers an escrow service to sucessfully exchange currency, that's pretty much it.
Can you please make your substantive points without personal attack? We're trying to avoid flamewars here. I realize this can be difficult when a topic is close to home, but it's an effort we all have to make on the topics that we feel strongest about.
Let me remind you that, the venezuelan corrupt goverment LOVES crypto, because it allows them to clean their stolen money. Thats why they are even mining it themselves  with free power and stolen bitcoin mining machines  And to finish, you can literally find the westerunion guidelines on how to send money to venezuela  where it clearly states that you can receive remittances in any office of "zoom cambios" in venezuelan territory. It would better if you addressed his arguments and not make dispersions against his person.
Classic ad hominem attack. This is the argument. I dont need to address anything. BTW, not that it matters but I dont hold bitcoins , I am not a trader and I dont have any association with localbitcoins, I even agreed with the points presented in the article check my post history now check OP's.
The problem with bots is you cannot refute all the nonsense they generate. They are not interested in arguing with you, their job is to generate as much contradictory claims as possible so everybody reading the thread will be lost and confused.
They could use hawala, a value exchange system which has been around for centuries. Fees are reasonable, the system is extremely trustworthy and use is not limited to Muslims. TransferWise is the tech incarnation of it. The TransferWise model is the future of global banking imho disclosure: I work in the financial infra space. Turns out money is just rows in a database and ISO messages, queued and processed. I had enormous problems trying to do anything with Transferwise from Cambodia.
It's still plagued with problems left over from the conventional banking system. This loops back to one of the few things cryptocurrencies do well: they're extrajudicial, so they're often used for illegal transactions drugs, ransom, bypassing sanctions. Bitcoin just happens to be really bad for this since the blockchain is forever. Then you are only really exposed to the volitility for the time it takes to swap, with uniswap that can be literally seconds.
Western Union had, hands-down, the best rates and the least hassle for me sending money to my home country. The old reputation of WU just doesn't hold ground any more. Their fees are surprisingly competitive, take another look. In places where fees are high it usually has to do with risks of doing business in the locale that they have to price in.
Litecoin is extremely similar to Bitcoin. The fact that some of the currency's "fundamental constants" have been tweaked to make it slightly better for certain situations does not change the fundamentals. It's kind of like the multiplicative constants in algorithm complexity theory. And while there are many other alt-coins that claim to have solved the scalability problem while remaining truly decentralized, I have yet to see one actually deliver.
I still question the early bag-holders of Bitcoin. Where are they and what do they do now? I think Litecoin came at a time when more people had an awareness of cryptocurrency, it's more democratized during the initial phases because of Scrypt and GPU's being the dominant mining tool at the time. I would bet a lot of folks have been selling it over time.
I ended up with 5 btc left over that I rode the bull market with, selling half the position post bull run each time. But I was a dumb college student at the time and was simply playing around with it for a few days. I wonder how many BTC were permanently lost in this period. Oh man, I'm right there with you.
I had the Bitcoin wallet app on my LG G3 years ago I found a backup USB stick with the wallet backed up to it. Tried to restore the wallet, realize I've forgotten the password. I would love to understand this in detail. If you mined it once you get a hash. When you say you lost those coins you lost the hash to the account? When you mined in was the hash smaller than today?
Is brute forcing possible? They lost the private keys, and they are not brute forceable. Bag-holder usually has the connotation of holding a worthless asset, bitcoin is currently at an all time high. I dare to insist it most certainly does. Anything is economically wothless unless there are people willing to participate in exchanging it. In the long term this definition is murkier, see the Dutch Tulip bulb bubble of the s.
I'm not sure we have any definition here :- But claim that anything is economically wothless unless there are people willing to participate in exchanging it is in fact supported not denied as you seem to imply by any example of speculative bubble, including of course Tulipmania. People are using bitcoins price to justify its value. Price is not value, certainly not on a short timescale. Consider that in the short term a market is a popularity content but in the long term, it weighs actual value.
This is another way of saying that the market can remain irrational longer than you can remain solvent.
The value of a bitcoin is the rarity of owning a coin is limited and the way it works opens up transactions globally. The price is the market demand. Are they magic beans or just beans? A bitcoin address gives you a unique global address decentralizated that funds can be sent to. There is utility to that function.
Using your description the internet is a magic place faeries built that provides no usefulness because it's virtual. No, Bitcoin provides no value because it's bad at everything it tries to be.
The internet provides utility. Bitcoin provides speculation and crime. He maybe bad at what you believe it tries to be, and still be useful. And hence its price. Everything valuable can become a tool, or a reason for criminal activity. However, once enough people agree they are good for exchange they become good for exchange. Then you can say the exact same shit about American dollars. The rarity of owning some paper with ink on it! That's alright, there is no coercion to use BTC.
I have no idea what that statement is supposed to mean or prove lol. Nothing, just a polite way of responding "nobody cares" to "thanks I'll pass. Yes it does change that. Depends how long you hold it for.
Well yeah, exactly, you're not a bag holder until it's a bag of something worthless. Litecoin is extremely under the radar right now. With the upcoming MimbleWimble integration it could become a privacy alternative to Monero. An unsuspecting onlooker would be easily convinced that this comment is random babble generated by a bot. To be fair, neither of you are providing any tangible, verifiable fact one way or the other. If so, I'd sure love to learn more about it.
And if there isn't can you offer something in the way of a proof? TY reply. Please give me a min of yalls time. Anyways, he sort has convinced me.. Is there any hope in BSV? Happy New Year!
Also, if BSV had enough users to ever experience scaling, its network would be so centralized it would be like a new PayPal but with Craig's employer running the show. Not surprisingly, after 2 years this idea has not caught on at all and the value of BSV as a fraction of BTC continues to plunge to new lows.
My suggestion is to get out of this scam immediately and stop listening to your gullible boss. Hope this purpose of blockchain tech pans out and improves compared to other existing options. Not to downplay the shitty situation that Venezuela is in right now, it says something when that's the only situation a quasi-currency is good in.
It's almost like for all of Bitcoin's problems, Venezuela has more. Why are they using bitcoin rather than dollar stablecoins? Too new? Of course! Every exchange and currency are as valuable and accepted as the group decides them to be.
Maybe with a credit card that converts your usd to a local currency. Localbitcoins doesnt exchange stables. CyberDildonics 4 days ago. Do you mean cryptocurrency in general? The fee someone pays to get a transaction into a block is similar to what passengers pay to be on the same flight—everyone pays something different.
CyberDildonics 3 days ago. What you are saying is somewhere between a gross distortion and a lie. Transaction sizes vary, transactions costs aren't as random as you are implying.
That's not how it works. Most transactions are small, you can't somehow cut them down to a fraction of the size it takes for a basic transaction from one address to another. I didn't mention a specific block, some have had even higher average transaction costs. Where did you see that? Again, that isn't how it works. If you put a transaction fee that is too low, you wait until there are no higher value transactions for yours to be included into a block.
Stop shilling, please. Fti 5 days ago. That stinks, given that their technology actually made crypto viable for everyday transactions. The only reason BTC works in this scenario is that the authorities are not chasing it down. If they decide to, it will be just as unviable as the other options and authorities have many methods at their disposal to make bitcoin transfers difficult.
BTC is cool, but no amount of tech can solve what is essentially a policy issue: overseas remittances. Kranar 5 days ago. The bottom line is that when a technology becomes available that makes life much easier for its users, it's really hard for the government to then crack down on it. There's not much reason for any government to want to crack down on BTC simply for the sake of cracking down on it.
People talk about governments cracking down on BTC because it will undermine the local currency or banking system but I think that's mostly paranoia, there's not much of any evidence to substantiate the hypothesis that any government is fearful of cryptocurrencies. There were some governments and regulatory agencies that were concerned that BTC is a scam, or needs to be subject to security regulations, and had legitimate concerns about it but for the most part governments don't care that much about BTC in terms of a danger or a threat to their legitimacy.
US would pass a bill that makes the exchanges illegal. Sure, people would find ways around that, but it would be enough to deter your average citizen and to squash widespread adoption. Whether BTC becomes a problem is a question, but if use in laundering or escaping taxes gets past a certain point, I do think it is a risk. The primary purpose of banking regulations is population control, it has nothing to do with currency perservation Know your Customer laws, book keeping regulations, etc are all about control and intelligence.
If they can get this intel and allow BTC to operate as is they will leave it alone, if however they can not get the intel they need on how money is moving well you can bet your life they will crack down hard Governments, all governments even yours, are about Power, Control, and Authority not what people seem to naively think that the government is there to "help" or "protect" or any other just altruistic goals.
Government isn't a monolith. There are individuals within the government that have altruistic goals. It may be helpful for certain analyses to simplify and consider a government as an individual, but for other analyses that's counter-productive.
Government is a monolith, the goals of the individuals that make up the government are irrelevant. Like fire, it is a dangerous servant, and a fearful master; never for a moment should it be left to irresponsible action. You're spouting platitudes, which I enjoy sometimes for a dramatic turn of phrase, but they aren't helpful for rational discussion.
They're best used for introducing a topic, but then we need a little more structure behind the facade. Going back to the monolith question, the other day someone at the public utility helped me fix a mistake with my bill. That individual was not irrelevant to my experience with government power.
We're very far from original ideas: Uncensored, decentralized ideals are forgotten. I remember, in the beginning, governments were really afraid of people's reactions, even to make small regulations. Today, we don't even discuss before accepting any regulation about Internet. Why is it obvious that no amount of tech can solve it? Tech can also influence policy. If something is nearly impossible to stop, it likely won't be stopped. The policy will be changed instead.
The rideshare industry had a clear impact on local laws in every first world country for one example. Right, because it was hard to control and ridesharing was clearly better. My point was the experience in functioning countries has not shown this to be true of bitcoin. What laws have been changed for bitcoin? The IRS issued official guidance on it but there's no need for new laws around it.
Whereas ridesharing forced legalization of ridesharing. I should note that I do not necessarily imply in my comment that it would be Bitcoin that would bend the world to its will. Bitcoin is just one member of a larger cluster of cryptocurrencies. There are certainly some cryptocurrencies for which it is not so obvious that governments will be able to enforce exactly the same laws as they enforce now. That said, even with Bitcoin, I do think it shifted the world ever so slightly in a new direction of financial independence which just wasn't there before.
There is something distinctly different about sending money to someone else in any part of the world just by typing their address, with no one being able to stop you. With traditional methods, governments could impose and have regularly interfered and imposed bureaucracy already on this sending step. With Bitcoin they do not do this because it isn't very practical. You could argue its popularity has prevented governments from regulating against it as hard as they would have liked to.
Can't the government simply shut down the internet to stop Bitcoin? Or insert itself as the man in the middle of all network traffic.
No, the government can't "just shut down the internet". If any government did that, then the country would suffer extreme economic damages, if such a policy was maintained for a long time. Your argument would be like if someone were to say "actually, the government can stop all theft, now and forever. Like, sure.
The government could end the world, by launch a nuke at every major city in the world. And it is true that by doing this it would end all theft.. But you are kinda missing the bigger picture if you are seriously suggesting this as a counter argument to anything. My point was that the government has control of the internet, and thereby all activity on the internet.
It seems that they don't care about damage, only power domestically, not internationally. The comment we're replying to said that Bitcoin is valuable in transactions with Venezuelan counter-parties because of Venezuela's government's damage to the domestic economy. Yes, if you're a big enough bully, you have control over many things. However, sometimes the control would imply too much destruction so even the bully chooses not to proceed.
This is essentially what is happening right now. In March , Venezuela's entire electric grid collapsed, leaving some regions without power for up to a week. Without electricity, electronic transactions including credit and debit card payments were impossible, and paying cash was futile with even the highest-denomination bolivar notes worth only pennies. So Venezuelans started using the option left: illegal foreign banknotes. How would they use Bitcoin when electricity is out?
Generators only last so long when fuel is rationed. They key word there is "allowed" because that emphasizes the ability to disallow at some point in the future. People have this sci-fi imagining of megacorps and the collapse of government power. Instead, we have Jack Ma probably afraid for his life, because he insulted the wrong person.
And yet, here we are, living in a world where such controls are pretty difficult to enact and simply aren't happening. Even in places where there are government controls over the internet, such controls are apparently not even close to perfect, on many many people are successfully able to get around them.
So, the evidence shows, that despite any argument that you are making about how governments might control the internet and stop anyone from ever doing anything at all that they don't like, that is simply not happening right now to such a perfect degree that you suggest should happen, even in currently authoritarian countries. Ok, and Venezuela isn't at all successfully preventing this damage.
They aren't doing that. So the evidence shows that, for some reason, Venezuela is unable or unwilling to put extreme controls on crypto, do the the consequences or difficulty of doing so. Any hypothetical, or arguments that you can possibly think of, as for why Venezuela should put extreme controls on crypto or the internet, needs to deal with the fact that Venezuela simply isn't doing that right now, likely for a good reason.
Because it is very difficult to do that. Nope, I'm not familiar with how widespread cryptocurrency usage is for international exchange with Venezuela. I do know that they keep tight control over traditional foreign currency exchange via public markets.
Despite the many motivations that current authoritarian countries have for definitely wanting to control their internet, right now, the evidence is showing that they are failing to perfectly control everything over the internet.
I'll admit I didn't read closely, but I have read a few news articles about some government or another temporarily shutting down internet access during a protest. I'd expect Venezuela could do something similar if they felt like it. They seem perfectly happy letting their citizenry go without basic staples, I'm sure they'd be fine turning off internet for a while. And yet, if you look at the real world, and how things exist already, you see that these types of efforts have failed.
This is not a hypothetical situation. This is not about stuff that may or may not happen in the future. Instead, you can look at real world situations, that happen right now, in existing countries all around the world, and you will see that the efforts to control the internet, have mostly failed. Ex: Just look at china, which is the most famous example of internet control.
Lots of people have VPNs and can get around these restrictions in china. The evidence already proves you wrong. There are multiple countries who have attempted to enact strict controls, over the internet, already, and they have mostly failed.
On the contrary, I think China is a good example of how the government can have its cake and eat it, too. When you say, "lots of people," how many are we talking about? The majority? If so, you'd think the government would just give up trying to have control, it wouldn't be worth the effort. Remember, we're not talking about trying to have a technology that a few hobbyists can use. The goal is widespread usage, enough that it prevents governments from controlling currency.
Enough that this whole original idea that you stated which was "Can't the government simply shut down the internet", is obviously not true. The real world examples of real world countries, show that places like china are not "shutting down the internet", and that such an idea is obviously stupid. There are tons of stories that you could make up in your head, about why China would want to shut down the internet right now.
And yet, the fact of the matter is, that China is not "shutting down the internet". Thats the facts. Countries are simply not doing that.
Despite many motivations to do so. Thats not happening. Despite the fact that crypto is often used for illegal purposes. And yet countries aren't enacting authoritarian control over all of the internet to shut it all down. We do not need to consider hypotheticals here. Just look at the real world, right now, and all the illegal activity that happens using crypto, and yet we are seeing that the world governments are not willing to enact measures to shut it all down. Apparently, it is not worth the effort to shut down that illegal activity, right now.
That is already the state of the world. I'll ignore the "obviously stupid" comment and let you Google for examples. I agree that it's not worth the effort for governments to shut down Bitcoin, at the moment. They're pretty happy with the pseudonyms it seems. What some people don't seem to understand here, is that I could make a bitcoin transaction, by make a phone call to someone, for example.
In order to truly prevent people from making bitcoin to transactions, a government would have to enact absolute authoritarian control over every single bit of information that goes into and out of the country. If I could even send a text message to someone outside the country, then I can send my bitcoin. Governments are not going to shut down all methods of ever sending text information to everyone permanently.
There are no examples of governments having absolute authoritarian perfect control over the internet, for any extended lengths of time. You have probably noticed that all of the above 3 profiles have one thing in common: they are not investing more money into Bitcoin than what they can afford to lose.
If you are a person that can handle wild market swings and that has some money set aside for high-risk investments, then Bitcoin might be a good option for you. In a research report by Finder.
Since the research only involved a few thousand people, these numbers may not be entirely correct, but it does give you an approximate idea of the group of people that you are joining when you buy your first Bitcoin. Having a framework that you can follow will make it a lot easier for you to handle the wild price swings of this digital currency.
Although there are a few more, in this article I will show you the 3 most popular Bitcoin investment strategies that you can start following today. Yes, that is not a typo. This is by far the simplest way of getting exposure to Bitcoin because it does not require any active management from your side, and since Bitcoin has been in a long-term bull trend ever since its inception, it might also prove to be very effective. Dollar cost averaging is a strategy also often used in stock market investing.
It essentially consists of buying small chunks of an asset periodically every week, or every month in order to minimize the risk of buying at the top. Therefore, if you are not comfortable with timing the market then dollar-cost averaging may be the right Bitcoin investment strategy for you.
Finally, the last strategy is to actively manage your portfolio. This can be done by selling some of your Bitcoin after it has gone up a lot, and by re-buying them cheaper if there is a drop. You may also go on a margin trading exchange like Bitmex , Deribit or Bybit , where you can open a leveraged short. Instead of selling 4 Bitcoin when you think that the price is going to drop, what you could do is send 2 Bitcoin to Bitmex and open a short with 2x leverage.
When the price then drops and you think the bottom is in, you can now close the short at a profit and use the profits to buy more Bitcoin.
Needless to say, this strategy should only be used by people that are experienced with the matter and that are familiar with the risks of bitcoin trading. The macro price cycle occurs in the form of multi-year bull markets that push for new all-time highs, and that is then followed by a year bear market.
On the micro level, Bitcoin is known to follow patterns in certain seasonalities. As pointed out earlier, Bitcoin is a highly speculative asset and you should never invest more money that you can afford to lose.
A good mentality hack to use before investing in Bitcoin is assuming that the money you are planning to invest is gone forever. If that thought makes you nervous, then you were planning to invest too much. That being said, if you are going to start investing a bigger amount into cryptocurrency, then try to own 1 whole Bitcoin first.
After you own your first Bitcoin, then you are now in a good position to also invest in other cryptocurrencies. Both coins are focused on becoming a digital currency.
BCH has a significantly lower hash power computing power than Bitcoin does and its blockchain is hence significantly less secure. With that being said, if you are just getting started and are looking for the best cryptocurrencies to invest in , then you should stick to Bitcoin since many people consider it the safest bet in the cryptocurrency space. Once you are more familiar with the technology and this asset class, then you might want to also buy some altcoins like BCH.
In late , another new fork happened. Should I buy Bitcoins or Ethereum? They wonder if Bitcoin still is worth buying now that it has already gone up so much in value, or if they should buy altcoins like Ethereum instead. So, while the decision if you should buy Bitcoin or Ethereum is one you have to make, what we can do for you is to outline some relevant facts for you.
This is especially powerful for fin-tech applications as Ethereum can completely cut rent-seeking intermediaries like banks out of the equation.
This not only applies for value transfer, but also to loans, digital representations of assets like companies listed on the stock market, and trading without the need for a central platform like a stock exchange.
If you want to learn more about Ethereum then a great starting point is our article about real-world use cases of Ethereum. Since Ripple has developed into a very powerful coin in the market, we should also keep it in mind as an option.
This digital currency currently ranks as 3 on Coinmarketcap, although it has beaten Ethereum in market capitalization a couple of times. When choosing which cryptocurrency to buy most of, everyone has his own factors or reasons to always keep in mind. Some look more into security considerations, others more into ease of use, etc. This all depends on the user and his own technical ideas. Setting aside other features, Ripple stands out for having a very strong community.
The transaction system of Ripple is more similar to what a bank would like. Bitcoin can normally manage around 5 transactions per second. On the other hand, Ripple can process around 1, transactions per second. That makes it pretty clear that Bitcoin and Ripple are very different cryptocurrencies. Bitcoin dominates the market as a store of value, and Ripple looks forward to dominating the fast transaction system. This means that transactions could technically be censored on the Ripple blockchain, and funds could be confiscated.
Buying Bitcoin is a lot simpler than most people think. Coinbase is a great cryptocurrency exchange for beginners because it is not only safe and trustworthy, but it is also extremely easy to use. So the first step to buy some Bitcoin is to create an account on Coinbase , this just takes a few minutes and the exchange will initially only ask you for your name and email.
After you verify the confirmation email to confirm your email address, you have the option to complete a basic identity verification where you submit your ID or Passport. You may only have to do this if you are planning to buy a large amount of Bitcoin. Note: This is a common practice in cryptocurrency exchanges and Coinbase has to do this identity check with large buyers to stay compliant. After your funds arrived, which depending on your bank may take up to days, you are now ready to buy Bitcoin.
Alexander has worked in community growth for multiple cryptocurrency companies. In his free time, he writes articles sharing his industry insights. You can get in touch with Alexander on LinkedIn.
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Should I buy Bitcoin? Do you know any other asset that has offered similar returns? Probably not. Risk Disclaimer. Investing in Bitcoin is very risky. Never invest more than what you can afford to lose. Buy Now.