Should I Invest In Bitcoin And What Actually Is Bitcoin?

 

Bitcoin is _______________ (finish the sentence)

Ask 100 people the question above and you will probably get 100 different answers.

Worst of all, most of the answers will come from people who have no idea what they are talking about and who have no real experience with bitcoin.

However, in my opinion, bitcoin is the only product in the world, (understand why later in this page) that has the capacity to get you out of debt and create enough income for you, so that you can stop work and go on holiday for 6 months all within 1 year!

That is a very bold statement to make, and on what authority do I make it?

 

Should I invest In Bitcoin, What is Bitcoin –  Introduction To Bitcoin

By now, you have probably heard of bitcoin. It’s pretty big these days.

However, you may not really know what it is.

And that’s cool…

I actually have some friends who have bitcoin, they are getting great returns on their bitcoin and they have no idea what it really is…

In fact, I totally understand how you are maybe confused, because as of February 2017, I didn’t really understand it either.

And then a friend of mine spent about 1 hour explaining to me what it was. He explained the potential behind it and on 28th Feb 2017, I bought my very 1st bit of bitcoin.

I invested just $100. So you don’t need a lot to get going.

At the time, bitcoin was just about $997 a coin. I didn’t have a whole coin, just a ‘bit’ of a coin (hence the name bitcoin – you can buy bits)…

By December 2018, a coin was almost $20,000…

Not only had the price gone up by almost 20 times, over the next few months, I had bought more ‘bits’ and I had a pretty good stock and a pretty good value.

In fact the way I invested it and the compounding techniques I used, created enough to not only pay off ALL my debt within 10 months…

I am also presently on a 6 month holiday in Thailand with my girlfriend Jane.

So when I say, in my opinion, bitcoin is the only product in the world, that has the capacity to get you out of debt and create enough income for you, so that you can stop work and go on holiday for 6 months all within 1 year…

…I know what the hell I am talking about…

First hand experience beats indirect hearsay any day!

 

 

Should I Invest In Bitcoin And What Actually Is Bitcoin?

 

In the first place, I am not a financial advisor, nor am I a qualified investment advisor, so I cannot tell you to invest…

What I can do is explain what bitcoin is and what capabilities it has as well as the risks and then let you decide for yourself.

So what is bitcoin…

In brief : it’s decentralized, it’s online, it’s virtual, it’s volatile, It was created in 2009, It’s the world’s first cryptocurrency, it’s peer-to-peer, it works without banks, etc etc…

Bitcoin has power because of these elements. You will see later there relevance. Here is a quick video to give you an intro…

 

 

It’s decentralized – This means there is no one place that controls it. In fact, the users control it. A bank is not like that. It’s centralized and the bank controls the money, not the users.

It’s peer-to-peer – A network of computers in which each part of the network acts as a server for all the others. The network is secure. The transfer of files and information is transparent.

It’s virtual, it’s online – I cannot actually give you a gold bitcoin. Bitcoin is not paper or metal. It is an online currency. This is nothing new. Credit cards are a version of online currency. In fact, you may not know, but about 97% of all money does not exist. It’s actually online. The other 3% is the physical cash we have in our wallets.

It’s transparent – Every transaction is available on a public ledger. The Blockchain is the ledger. Every transaction is verified by bitcoin miners. It is non-reversable. It is very secure.

It’s volatile – Right now, bitcoin is a volatile product. Last February 2017, it was worth about $1000 a coin, then it went up to almost $20,000 a coin in December 2017 and right now in July of 2018, it’s worth about $6700 a coin. The volatility is what gives us the chance to make money. But with that also comes risk. But we like to think it is a calculated risk.

Satoshi Nakomoto – Satoshi holds credit of the design and invention of bitcoin. He presented the concept here in this document. However, the real identity of Satoshi is actually not known. He disappeared to keep his identity a secret. Probably a very smart move. In fact,  a  satoshi is the smallest amount of bitcoin, representing 0.00000001 bitcoins, one hundred millionth of a bitcoin. You do not need to buy a whole bitcoin, you can buy tiny little ‘bits’ to get going.

 

 

What is Bitcoin –  And What Really Give It It’s Value In My Opinion

Bitcoin solves a problem.

The problem was that the banks, financial houses and governments have basically bankrupted the financial system with their fractional reserve system.

They just keep creating more and more money, which just keeps devaluing money.

Have you noticed, you keep working harder and your money goes nowhere. The banking system is broken.

Only 21 million bitcoins can be made in total. You cannot ever make more. Therefore you cannot devalue it, by creating more.

For the most part, this has the opposite effect in general. The price of bitcoin goes up, more people want it, but because there is a limited supply, it gets harder to find….

So the price goes up….

And when the price of bitcoin goes up, more people want it, but because there is a limited supply, it gets harder to find….

So the price goes up….

And this continues…

Every now and then, the banks, the financial houses and governments, (who tend not to like bitcoin) try to scare the public, by sharing some bad news about bitcoin or cryptocurrency…

And the public get scared, because they do not understand the trap that is being set by these financial house…

As a result, they sell and the prices go down…

And very often you see the very financial houses that gave the bad news, buying the coin at the new low price.

Do you see the trap?

And then the price goes up and they make a load of money!

But it is within this volatility, that if you know what you are doing, that you can make a lot of money…

WARNING: As fast as you can make money, you can lose it too…

Crypto and Bitcoin is very volatile and not for those who demand guarantees and fixed security.

But with the risk, can come very high returns. Indeed millionaires have been made in less than a year.

So when you ask “should I invest in bitcoin?” I have to say, “It depends”

 

Should I Invest In Bitcoin – The Good and The Bad

The Oxford Dictionary defines invest as:

 

Put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

 

I believe that the very issue of investing is the within the definition.

Everyone investing has the ‘expectation of achieving a profit‘ and thereby lies the problem.

No one expects to lose!

So for most investors, you can tell them till you are blue in the face, that it is “not wise to invest more than you can afford to lose” and every time, the investor says, “yeah yeah no problem…” because they expect a profit…

But what happens is when they do not get a profit, their expectations are not met, and then they cry bloody murder!

And swear blind you made a promise to them!

So if you want a guarantee, and if you expect to make a return, you are probably not a good investor in bitcoin.

We all want a return, but expecting it, is the problem.

So bitcoin and cryptocurrency is a very volatile product right now. One minute value is up, then next it’s down.

Earlier this year I bought some altcoins and the value has gone down by 50%…

I see a lot of people dumping the coins because, ‘they lost so much’ but in reality they only lost when they sold.

In contrast, I kept mine, and the value is coming back up and by next month it should be back to normal and I will not have lost anything at all. In fact, I will make money…

If ‘fear of loss’ drives you because the price has dropped, bitcoin is probably not your thing.

Better to get your 0.5% per annum in the bank!

 

So Should I Invest In Bitcoin – I Totally Understand The Risk!

As I said before, I am not a financial advisor, so when you ask me “should I invest in bitcoin” I cannot give you advice or a definite YES!

 

But if, you understand the risks:

As with all investment, there is no guarantee of a profitable return;

And that you could lose everything you invested;

That cryptocurrency and bitcoin are really volatile;

That they are relatively new investment platforms;

Money is at risk. you may lose it.

But before you make the decision, let us explore exactly what bitcoin is

 

Bitcoin Is A Movement – A Currency Crusade

I believe bitcoin is a movement aimed at creating freedom for man. Freedom from the banking system and the Federal Reserve.

Satoshi Nakamoto, or a team of people working under that name, shared the bitcoin concept on 3rd Jan 2009 in a white-paper that explained how they had created a system that would allow people to transfer money directly to each other. The system is online and is anonymous. It was also out of government and financial house control. It is peer-to-peer.

In the document they release, they suggested that the motive behind bitcoin was to solve a problem created by the financial crisis. They stated that “The root problem with conventional currencies is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.”

Bitcoin, therefore, was created to extricate mankind from the financial grip of the banks and the governments that had been imposed on us for so long.

The price of bitcoin was the last thing on the minds of the early bitcoin movement.

What they wanted was financial freedom and this thought movement spread through communities quickly. At last we had a way of separating money from the state!

With that in mind, do you understand why the banking system and governments globally put out so much negative hype about bitcoin.

Clearly, it undermines their power over us and they do NOT want us to have financial power and freedom.

Once they realized they could not stop it, their next mission is to regulate it…

Or in other words TAKE OUR FREEDOM AWAY!

So while, you have the possibility to make money with an investment in bitcoin, the real investment is financial freedom and that, in my opinion, is something worth investing in.

The video called the Declaration Of Bitcoin’s Independence, explains this concept more.

 

 

Is a tool that takes financial control over mankind away from governments and gives us freedom, worth investing in?

I leave you to answer that question!

Lastly, if you want to invest in something that has the capability of exponential explosion, then watch this video:

 

Turn Your Computer Into A Crypto Currency Trading Machine

 

 

 

 

 

 

This article ‘Should I Invest In Bitcoin And What Actually Is Bitcoin?’ is written by Tim Bennett exclusively for Bitcoin Training Camp © 2018