Unless you’ve been living under a rock for the past 2 years, you will have at least heard of a Bitcoin. But what are Bitcoins? What do they do? How do you get them? And how are people making money from them?
Bitcoin is an online currency which is essentially an alternative to standard currencies. It is created and held electronically – no one controls it. Bitcoins aren’t printed like dollars or pounds, they’re produced by people and businesses that are using software that solve mathematical problems. It is predicted that in the future, instead of paying for things with dollars, euros, pounds etc., people will simply pay with Bitcoins.
Bitcoin was started in 2009, but never really gained any real value until late 2016. For example, in 2013 one Bitcoin was worth £70. To give you a rough idea of how quickly Bitcoin has taken off, one Bitcoin, in 2017, is now worth £7,700.
People are making some serious money by investing in Bitcoin, because at the minute it only seems to be increasing in value. If you want to get in on the action, go to Coinbase.com, or download the Coinbase app and you can start investing. You don’t have to buy a whole bitcoin – you can simply by £5 worth if you please.
And from there onwards it’s very simple. Buy a share – if Bitcoin’s value increases, the amount that your share is worth will also increase. If you sell the share for more value than you bought it for, you’ve made profit. Simple.
But be careful. Although at the minute it seems like guaranteed profit, and many experts have forecasted Bitcoin to be at £20,000 by just spring, some have also predicted that it will go bang and the whole thing will crumble, which is pretty scary. Download Coinbase and have a go for yourself, but be cautious with how much you spend.
Thanks for reading! I am no cryptocurrency expert so if you have any feedback please dm me on instagram, @dailybusinessthoughts. I have also just opened a twitter account which I am using to post daily business facts, so make sure to follow that too, @dbizthoughts. Come back next Thursday for next week’s blog!
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