Buying Bitcoin? A Quick Primer

If you are asking, “Should I buy Bitcoin or should I use it in any way?” this quick primer sheds some light on it. Many people would love to break into the world of Bitcoin; they just aren’t sure how to go about it. It is certainly true that in its earliest days, obtaining and storing Bitcoin was far more complicated than the average person had time for. Now, buying Bitcoin is a much simpler process that anyone who wants to can learn with relative ease.

Why Sould I Be Buying Bitcoin?

We assume that you understand what Bitcoin is. It is a cryptocurrency. In fact, it is the cryptocurrency right now. There are many cryptocurrencies available now, each subject to their own price fluctuations. Bitcoin has become the ‘standard’ amongst these new digital currencies. If you have any questions about what Bitcoin is then you can find a detailed guide at Crypto Head. But other than hoping to cash in on the next price increase, why would anyone be buying Bitcoin?

crypto-currency buying bitcoin

Well, many people have been attracted to Bitcoin because of the underlying principles and ideologies at play. Bitcoin is the most prominent symbol of the drive towards a decentralized, global currency. Some people believe that such a currency is a necessary component of a completely free society.

Bitcoin also appeals to those who want some anonymity, and this is part of the reason that it has been used for illicit transactions on the dark web, although this is by no means the only reason someone might want anonymity. Despite the fact that every Bitcoin transaction is recorded in a publicly accessible log, the names of the users involved are hidden and it is only their wallets that are recorded.

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What are the Pros and Cons of Buying Bitcoin?

Bitcoin represents the first widely successful attempt at creating a digital store of value. The anonymity it affords, as well as its decentralized nature, has made it popular with those who are most concerned about their privacy. Some people argue for Bitcoin in the context of a tool with which society can free itself from government control. Most visions for the future of Bitcoin aren’t quite this dramatic, but it could potentially be transformative for economies across the globe.

Bitcoin is growing at a surprising rate. It is currently proving ever more popular as an investment asset, but it is even more unpredictable and prone to massive fluctuations than traditional investment assets. Because of this there has been an increasing drive to regulate it in many parts of the world.

One major emerging concern with Bitcoin is the amount of electricity that is required to mine it in significant quantities. Now that countries like China are dedicating significant resources to mining Bitcoin, sometimes using cheap and dirty coal power, other times environmentally questionable hydroelectric power, the environmental cost of its energy intensive mining process is becoming clear.

Other Cryptocurrencies

If you have been researching cryptocurrencies more generally then you will almost certainly know that Bitcoin isn’t the only player in town. The truth is that, by and large, cryptocurrencies all work according to the same principles. When a new cryptocurrency launches, there’s no telling how popular it will be and so it might be safer to wait and see.

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Bitcoin represents a risky investment, but it is becoming more widely accepted as a general currency. In the future, Bitcoin could be paired with the NFC in technology in phones and become a widespread payment option. For now, it is still relatively niche, although it is gaining acceptance.

Related Articles

  1. This Quick Guide Will Help You Get Started With Bitcoin
  2. Here Are Some Popular Mobile Bitcoin Apps You Can Use

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4 thoughts on “Buying Bitcoin? A Quick Primer

  • March 1, 2018 at 4:36 pm
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    Hmmm….

    They say there can be no business without risk taking.

    Is bitcoin good business? Well, it might be.

    The greatest threat to cryptocurrency is the problem of instability and speculation.

    It’s like the stock markets, there is no regulatory agent to this phenomenon for now. Security wise, Confidence still impedes the proliferation of the bitcoin.

    Let’s keep our enthusiasm and eyes out on this for now

  • March 1, 2018 at 6:50 pm
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    Now I know how Bitcoin works, I have no idea on how it was before now. Should I give it a try? only time will tell

  • March 9, 2018 at 7:53 am
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    Hmmmm….Just waiting to see how this will pan out.

  • March 19, 2018 at 6:57 pm
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    I have once swim in the aqua of bitcoin, my experience wasn’t a pleasant one.. The extremely volatile nature is not helping matters.

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