Bitcoin is a digital money network that is decentralized, peer-to-peer, developed to allow internet users to perform transactions via a digital exchange unit known as Bitcoins. This is a virtual money, in other words.
The bitcoin framework was developed by an anonymous programmer(s) in the year 2009. Until then, as an alternative to US currency, euros and commodity currencies such as gold and silver, Bitcoin has gained considerable interest as well as controversy.
Until the year 2009, Rise to Popularity Bitcoin has not acquired much interest in industry and finance. It acquired popularity in the era 2011-2012 when it earned more than 300 per cent. Bitcoin’s value has risen by 400 per cent from last year’s August. As a consequence, the blockchain starts to gain attention from venture capital companies and developers around the globe.
In the first half of 2014, venture capital funds in the first quarter spent $57 million in Bitcoin, backed by another $73 million in the second quarter amounting to a total of $130 million, which is 50 per cent more than the average of $88 million in the last year. This is a total contrast to the 2012 situation where a comparatively modest amount of $2.2 million was earned by Bitcoin companies.
Such numbers show beyond questioning that Bitcoin is worth the money, which begs the issue of how to purchase and invest in Bitcoin?
A recommendation for new Bitcoin buyers Buying bitcoins is the simplest and least difficult way to invest in Bitcoin. There are several existing companies that are engaged in the sector of buying and selling bitcoins, abbreviated as BTC, mostly in the US as well as abroad.
If you stay in the U.S. then the location you are searching for is Coinbase. Coinbase delivers BTC to its users at an average 1 per cent rate over the current market level. US residents have the option of synchronizing their Coinbase wallets with their bank accounts. As a consequence, potential money payments would be rendered trouble-free. This business even offers you sometimes the right to purchase automated bitcoin. For eg, if you’re interested in purchasing $50 in bitcoins at the start of each month, Coinbase would allow you to set up an auto buy for that price.
Beware of the terms and conditions before you continue using this program. You would not be able to monitor the price at which the BTC is bought every month because you have subscribed to an automated bit coin program. Notice that Coinbase is not operating as a Bitcoin exchange, i.e. purchasing and selling the coins directly from the service. Since the business needs to purchase the coins from other customers, you may face delays or shortages while placing orders during quick movements on the sector.
BitStamp meets the specifications of a standard exchange of bitcoins. Bitcoin acts as an intermediary that allows you to trade with other users rather than the firm itself. The demand here is better, and you always have a good chance of finding someone willing to trade with you. An introductory cost of 0.5 per cent can be lowered to 0.2 per cent if you sell $150,000 within 30 days.
Alternative ways to acquire bitcoins Local Bitcoins Trading isn’t the only way to invest in bitcoins. Local Bitcoins are often used for offline purchasing of BTC. The website is designed to link prospective purchasers and sellers. The bitcoins are locker in an escrow from the seller and can be released only to buyers.
Offline purchasing bitcoins isn’t always pretty reliable or secure. It is therefore best to visit the sellers during the afternoon, and let a mate tag with you in case things go south.