Bitcoin - Future of Money?
- Alessio Favaretto - Founder
- Jun 10, 2017
- 3 min read
Updated: Sep 11, 2020
When I read this recent article from CNBC entitled:"If you bought $100 of bitcoin 7 years ago, you'd be sitting on $75 million now", I completely freeze since five years ago I came across Bitcoins for the first time, and wrongly thought it was just a scam.
This is the exact price most people pay for their ignorance! The unwillingness to learn more about a subject.
Straight away after reading this article I started doing my own due diligence about Bitcoin and other crypt-currencies. I came across this video interview which completely changed my viewpoint, and it's like living a dejavoo.
Video - What is Bitcoin and How to Explain it in 2017!
If you watched the video above, you now have a better understanding about Bitcoin and you probably feel the same as I do. Shocked!!!
Especially when you have people like Bill Gates clearly stating "Bitcoin is better than currency". So you are probably asking yourself should I buy some Bitcoins? How do I buy it? Is Bitcoin the only cryptocurrency out there?
How To Buy/Sell Bitcoins?
The best starting point is by exploring directly www.bitcoin.org official website.
Like anything else, when something is new it's easy to get loss. It's normal. So I totally recommend reading the FAQ (Frequent Asked Questions) session on the main menu.
Then go to Resources > Bitcoin Exchanges. You will see this page below, showing the different approved exchanges platform by country and international.
After reviewing each exchange platform in Australia, I noticed a huge gap in charges between exchanges. For example, Coin-jar charges for BUY/SELL Bitcoins a flat 1% fee. Surprisingly even FREE if using BPAY® or POLi transfers with a linked bank account. This particular platform even provides an Eftops - ATM card. That's incredible!
I am not in favor of one exchange versus the other since they all may have some benefits for the extra charges paid. Although be careful and educate yourself.
Watch out for commissions and big spread!
Other exchanges like Bitcoin Australia and CoinLoft charge 5% in commissions. So you will notice a big different between the buying/selling price of Bitcoins (even up to 10%). How? If you buy and sell from the some exchanges you can loose 5% when buying Bitcoins + 5% fees when selling it.
So, do your own due diligence before paying extra fees. One of purpose of Bitcoin is avoiding unnecessary fees in the first place.
How much is one Bitcoin worth it right now?
Coindesk is one of the reliable live sources used to value Bitcoin in USD, CNY, EUR, GBP. Be aware that if you are in Australia, there will be an exchange rate applied between USD > AUD or whatever currency you .
When I took this screenshot one Bitcoin was traded at 2,849.85 USD. This value will fluctuate based on the market and the exchange platform you choose to use.
Opening a Bitcoin exchange (e-wallet) account
What should I expect?
I open and trial three e-wallets at this stage. So, expect to be asked for your email, phone number and log in password for log-in purposes. Then, you are required to link your bank account for withdrawing of funds.
Often, the e-wallet will ask you to save a six words computer generated password which you must keep. It's the most important piece of information for accessing your account in case you loose you smartphone, or whatever device the e-wallet is attached to.
Is Bitcoin the only cryptocurrency?
Despite Bitcoin being the first cryptocurrency with a Market Cap of 46 Billions, there are others already on the rise. Ethereum for example with a 26 Billions Market Cap is the second most preferred one, followed by Ripple, NEO, etc. There are 867 cryptocurrency to choose from, in case you wondered. Find here a list of all.
Conclusion
It remains to be seen whether or not Bitcoin or another cryptocurrency is going to be the Future of Money. One thing is sure. It has surpasses any expectation and like the first computer, or the first internet experience, its benefits are enormous. In less than 6 minutes I can transfer money worldwide to anyone, I can copyright any of my work, anything type of label or ID by attaching it to a crypto-coin transaction. No central bank or financial institution can control Bitcoin, is that perhaps the beginning of real free market?
To your success!!
Article Reference:
https://bitcoin.org/en/
http://www.cnbc.com/2017/05/22/bitcoin-price-hits-fresh-record-high-above-2100.html
http://www.coindesk.com/price/
https://www.youtube.com/watch?v=LnqRMT-XXVo
https://www.coinjar.com/?signup_params=%40Millionaire
https://coinmarketcap.com/all/views/all/
DISCLAIMER: BEA HERO™ does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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