If you’re looking for some some down and dirty advice to get started buying Bitcoin, this is the place.
Here are two different sources that explain WTF Bitcoin is:
In sum: It’s a currency and a store of value. It’s cool because is decentralized (no one person/company owns it) and because it utilizes blockchain technology (basically a ledger of transactions that can’t be faked or messed with).
Why it has value (according to me):
- Popularity – It’s really only valuable because enough people believe in it.
- Scarcity – Only 21 million will ever be in existence.
- Trading – A lot of the other digital currencies cannot be bought with fiat (i.e. USD, AUD, etc.). You would need to first buy Bitcoin (or sometimes Ethereum or Litecoin) and then trade for the coin.
Obligatory warning: IT IS EXTREMELY VOLATILE. Some people say it’ll reach a million per bitcoin (these are the typical “to the moon!” type fans). Even more others say it’ll drop to $0. No one knows. It is going to depend on many, many factors (legality, taxes, new technology, etc.). Only invest as much as you are willing to lose.
You do not need to buy a full bitcoin. You can buy a fraction. My mom has almost 1% of 1 bitcoin and watches it like a hawk. Buying a little bit is a fun way to start and kind of keep your eye on the game.