Easy Forex
WHAT IS BITCOIN
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The best and simplest definition for Bitcoin is this “Bitcoin is Money”. Yes, Bitcoin is the money of our generation and the future generations. Well, in the history of money, several objects have been used to carry out transactions. Money has been and still is any object that is generally acceptable as a means of payment for goods and services, in other words money is a legal tender.
Bitcoin fulfills all the characteristics of money. In the past, money has taken many forms like cowry shells, beads, precious metal, paper, and in our generation it is becoming digital in form of bitcoin and other cryptocurrencies, because we live in a digital world.
Bitcoin is digital money; this simply means that unlike the previous form of money, Bitcoin is not anything physical. It is not physical yet more real than any form of money earlier used. It exists on a technology called Blockchain which helps to store all the information and transactions about all the Bitcoin that ever exist. The information on Blockchain can never be destroyed or manipulated. Also Blockchain cannot be controlled by one central body or government, making Bitcoin the best form of money to ever evolve. With Bitcoin, you are simply your own bank, as you can spend your money anytime, anywhere, with no restrictions whatsoever.
Is Bitcoin the next step in the evolution of currency?
As we saw before, anything can count as a currency, if it has this five features:
Divisibility – it must be divisible into smaller units (e.g. Naira divides into kobo while a dollar divides into cents)
Scarcity – it must be of a limited supply (e.g. the supply of gold is limited by the amount we can mine)
Durability – it must be able to survive the wear and tear of rough usage (e.g. modern banknotes are waterproof)
Transferability – simple to exchange between people (e.g. moving from one hand to another)
Fungibility – individual units need to be interchangeable (e.g. any $1 note has the same payment value as any other)
Bitcoin is considered by some to be a logical next step in the evolution of currency. It fulfills the key features perfectly, and it’s also better suited to our modern technology driven world. Bitcoin is:
Divisible – one Bitcoin divides into units as small as one hundred millionth
Scarce – the total supply is limited to 21 million Bitcoin which gives it value
Durable – as Bitcoin doesn’t exist in physical form, it can’t wear out
Transferable – Bitcoin is digital so you can transfer it to anyone, anywhere in moments
Fungible – any particular Bitcoin is equal in value to any other Bitcoin.
The technology has evolved to offer us faster, cheaper, safer money with more equal access. Across the world, people are moving towards digital payment systems because it’s no longer necessary to use physical money for everything.
Changes to the way currency works have always been challenging.
Bitcoin remains controversial because it’s new and different to what we’re used to. But if you look at how currency has evolved over time, you’ll see that people have always moved towards whatever system made the most sense at the time. Right now, cryptocurrencies make a lot of sense.
Recently Bitcoin has gained more popularity in the world, and even in Nigeria, people now choose to send money to their families and friends using this unique form of money. Young men and women working online now prefer to receive payment with Bitcoin Because of the advantage it has over the ever dropping value of naira.
With this new form of money (Bitcoin) gaining popularity and acceptance around the globe, how can you as an individual benefit from it? I have tried to list a few ways to get you started.
Strategies for Making Money With Bitcoin In Nigeria
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Trading Bitcoins
Buying and selling bitcoins is probably the fastest and easiest way to try and make some money with bitcoin. Just like the stock market, bitcoin trading involves buying at a low cost and selling when the price has gone up. Bitcoin is a volatile currency which means the rate can rise or fall several times a day with margin of $10-100 per bitcoin value.
Investments
Bitcoin like gold is scarce, this is due to the finite or limited supply of Bitcoin, there are going to be only 21 million Bitcoin ever. I mean EVER! (Out of that only about 17 million is in circulation now, as the rest are continually being mined). With bitcoin you can invest for the future. For Nigerians, Bitcoin can serve as a high profit investment, due to the behavior of the Nigerian Naira in the foreign exchange market.
In July 2017 one Bitcoins was worth $2,500. The equivalent naira rate for one Bitcoins was about #962,500 because each dollar was worth #385 on the black market. Now a year later, September 2018, the same number of Bitcoin is now worth about $6,250, and the equivalent naira rate for one Bitcoin would now be #2,250,000. Can you imagine the profit margin.
Remittance
Nigerians living in diaspora and those doing business across Africa, China and the world can save on money transfer fees and foreign exchange rate by sending money in Bitcoins, this would save time and reduce over 10% fees charged by several Money Transfer Operators. Bitcoin exchanges are available all over the world, allowing users to convert any currency into and out of Bitcoin.
How easy is it to get Bitcoin and use it?
Obtaining cryptocurrency Bitcoin is easy. This can be done via:
- Payment with credit card, making the exchange of your local currency in return for Bitcoin.
- Exchange money with the help of a person who is already got Bitcoins. Such people can be found even locally on Aboki FX.
Where do people store their Bitcoins?
First In order to have the opportunity to receive and send bitcoins, you need a wallet – an app that lets you receive, hold, and spend bitcoin. Just like conventional money.
There are a variety of wallets on the Internet. We suggest you try the following:
Luno, Xapo or Blockchain
You can learn about, buy and use Bitcoin with Luno now.
Bitcoins are divisible, you can buy as little as N10, 000 worth of bitcoin without extra fees.
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INVEST IN BITCOIN
Click here to watch the video on what is Bitcoin now
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and businesses, running computers all around the world, using software that solves mathematical problems.
What makes it different from normal currencies?
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.
However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.
How did Bitcoin come about?
A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.
This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. The central banks can simply produce more money to cover the national debt, thus devaluing the currency.
Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network.
This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. The rules that make bitcoin work – say that only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin).
Conventional currency is said to be based on gold or silver. But bitcoin isn’t based on gold; it’s based on mathematics.
Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it.
Bitcoin has several important features that set it apart from government-backed currencies.
1. Its decentralized
2. Its easy to set up
3. Its anonymous
4. Its completely transparent
5. Transaction fees are miniscule
6. Its fast
Now that you know what Bitcoin is all about and how it works you’ld not only want to have some or rather would you not want to invest in bitcoins? You can even trade bitcoin and other cryptocurrencies like etheruem and Ripples on the Forex Markets. But first you need to create a Bitcoin wallet. Click HERE.
