Bitcoins: Who, What, How, and Should I Jump On The Bandwagon!?

Desmond McCain

Bitcoins: Who, What, How, and Should I Jump On The Bandwagon!?

Coins? Say What?

When I first heard of Bitcoins, Sonic the hedgehog and those Gold Rings came to mind. Yep! Brings back memories doesn’t it?!!! Those days are long gone, but Bitcoin is continuing to gain traction all over the world and seems to be here to stay. A ghost developer or collection of ghost developers put their minds together to create potentially the biggest wave of technology since the internet. I oftentimes refer to Bitcoins as internet money, but technically speaking, that’s probably not the best way to describe it. Let’s dive in! 

What? 

Bitcoins came into being in 2009 when a person referred to as Satoshi Nakamoto published the first Bitcoin specification and proof of concept. Nakamoto wanted to provide the ultimate solution for internet commerce and create a system where money could be transferred person to person without financial institutions serving as a middleman to regulate transactions. He created a payment network that eliminates transactions costs, enables people to transfer money to each other no matter the amount, and prevents fraud in the way of non-reversible transactions. Probably the most attractive of advantage for Bitcoin is the privacy – there is no need to give your real name when doing transactions. The people involved can be totally anonymous. 

Can I Buy Items With Bitcoin Now? 

I get this question all the time and the answer is…definitely! An increasing amount of merchants are beginning to accept Bitcoin as a means of payment. From nail shops to pizza delivery services, even me! I will accept bitcoin. International payments? Yes indeed! Bitcoin can be easily, cheaply and ANONYMOUSLY transferred all over the world just as easy as we can transfer dollars on PayPal.  

How? 

Bitcoins are stored in “digital wallets.” Usually these wallets will exist on some type of cloud application or the individual’s computer and serves as somewhat of a virtual bank account that allows for owners to transfer, receive, buy, and sell Bitcoins with other digital wallet holders. The marketplaces for Bitcoins are called, “Bitcoin exchanges.” They enable people to buy and sell bitcoins using all types of existing currencies. This site here can provide some assistance in choosing a wallet that’s best for you should you decide you want to get into Bitcoins. 

Bitcoin as an Investment:

What I have been truly interested in is Bitcoin as an investment opportunity. Bitcoin is gaining a lot of attention with its recent gains in value. Just this past week, it skyrocketed over $7,000 gaining $1,560 in value. And over the past year, it has seen growth upwards of $6,600. Early adopters are seeing huge gains and the wealth generated from their early investment is astonishing. Bitcoin will continue to rise in value as it becomes increasingly more apparent that this cryptocurrency is extremely useful in the business world. Earlier this week, the CME Group, the world’s largest Option Exchange and owner of the Chicago Mercantile Exchange, revealed they will be introducing the trading of Bitcoin futures by the end of 2017. This signals that Wall Street is beginning to accept Bitcoin, and once they completely do, there is no limit on where Bitcoin will go. 

Invest or Nah? 

I have given you some very high level information about Bitcoin, but I recommend you all do more research before investing in the cryptocurrency. The information above cannot be solely relied upon for one to make an educated decision on whether to become a player in this budding industry. Personally, yes I have some money in Bitcoin. How much? Definitely not $7k worth! These recent gains honestly got me feeling like Jay Z when he didn’t invest in Dumbo….DUMBO! A lack of knowledge has prevented me from really taking advantage of the growth in this industry. However, I have used this as a learning experience and I’m working overtime to gain as much wisdom about this industry as I can. I truly believe this is not just a fad but a phenomenon that is here to stay. 

Have more questions? Let’s connect 

IG: @DezzTheCPA

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Bitcoins: Who, What, How, and Should I Jump On The Bandwagon!?