Bitcoin has been around for a good few years now. And whilst we might have heard a lot about this cryptocurrency, many of us average folk still don’t understand exactly what it is. So if you’re wondering whether you should jump on the bandwagon and invest in Bitcoin, here’s some vital information to help you wrap your head around the concept of cryptocurrency.
What is Cryptocurrency?
Cryptocurrency put simply is a digital currency. It is money that can be used online to make purchases and transactions.
As our lives become increasingly digital, it was only a matter of time before someone made a currency that was digital too. Before coins and printed money, people traded in products and services, and now as society is evolving even further, so is our currency.
What is Bitcoin?
Bitcoin is just one of the many types of cryptocurrencies available today. Though the idea for cryptocurrency goes as far back as the 1980s, Bitcoin was only made available for online transactions and payments in 2009. Now, ten years later, it is probably the most well-known type of cryptocurrency available which makes it arguably the most valuable and useful.
Bitcoin allows us to make local and international transactions, trades and payments without involving banks, governments and other third parties. Because it is transferred directly between two parties, it removes the two or three day transfer delays between banks and therefore drastically reduced transaction-processing times. It also removes the red tape of international exchange rates and transaction limits which makes it far easier to use on a global scale.
Overall, Bitcoin is therefore cheaper, more convenient, easier and more secure than traditional currency.
Is There Still Time to Invest in Bitcoin?
In short, yes.
Although many people are hesitant about converting to bitcoin because you can’t see or hold it, it’s becoming increasingly popular and is likely to continue doing so as society becomes more and more digitally inclined. Because it’s faster, more secure and cheaper in many ways than traditional currency, more and more people and businesses are turning to bitcoin and its value has increased significantly.
Another major concern that deters people from investing in bitcoin is that they don’t believe that it will be around for much longer. But as we’ve already established, this cryptocurrency has been in circulation since 2009. That’s ten years of more and more people turning to bitcoin. So, much like how AirBnB has changed the hotel and travel industry and how Uber has shaken up the taxi industry, bitcoin has forever changed the financial industry and is unlikely to go anywhere any time soon.
So, in simple terms, even if you weren’t one of the savvy (and now rich) early adopters of bitcoin, there is still time to invest.
Where Can You Buy Bitcoin?
If you’re thinking about buying bitcoins in Australia, you need to make sure you are buying from a legit and reputable source. If you’re reading this article, it is safe to assume that you are a novice in the cryptocurrency world. You should therefore make sure you get your bitcoin via a digital currency exchange that provides plenty of education about bitcoin and other cryptocurrency. This will help ensure that you make smart, informed decisions and ultimately make good investments.
If you have a self managed super fund, you can actually use it to invest in bitcoin and other cryptocurrency. Again, you should make sure that you do this via a legitimate currency exchange platform with plenty of educational material designed to help you make the right decisions.
Crypto-currency is no longer just for the forward-thinking and tech-savvy. Since it’s launch in 2009, bitcoin has become increasingly popular and increasingly accessible to the average person. And yes, that means you. You still have time to explore bitcoin as an investment opportunity as well as a means of paying bills and making day to day transactions and purchases. Just remember to use a reputable digital exchange platform to ensure that you make sensible, informed and smart investments.