In 2009, the year of the launch of Bitcoin, the value of the virtual currency was € 0.01. Those who bought in that period, sensing the potential of digital and completely independent currency, saw their capital grow exponentially during the following years.
Being detached from any external control entity and strongly linked to the value of the virtual space and the energy necessary to make it work, Bitcoin is characterized by high volatility. The possibility of high gains – or losses – has attracted large amounts of capital from investors all over the world, seduced by the underlying technology and by the idea of a currency designed to acquire value over time. The total supply of the coin is, in fact, 21 million units: less and less are minted every year, and in about 32 years, all Bitcoins will have been placed on the market.
According to the developers, the scarcity of the currency will lead to deflation and, therefore, to an increase in its value against the dollar. Governments can only watch – and that’s what they have done so far – accepting the existence of a currency that they cannot control, regulated by the mere dynamics between supply and demand. The system behind Bitcoin is called a blockchain.
“Chain of blocks”: prevents the use of the same unit twice and regulates the creation of new money through the “mining” activity. This technology has limits that have been partially overcome by other more recently developed cryptocurrencies. Still, Bitcoin continues to be the most promising of all digital cryptocurrencies. It is the first to be created and has its time advantage: it has had more time both to acquire investor confidence and to grow in value.
To make money with Bitcoins, you don’t have to understand in detail the mechanism behind its operation (unless you want to be a miner!). You just need to know which are the most reliable sites to buy Bitcoins, what payment methods you can use, and how to resell or use your Bitcoins. Monitoring their value is very easy: simple graphs are available online with all the exchange rates that may interest you.
Pros and cons of buying Bitcoin
Bitcoin is a digital currency, unrelated to any control body. As with all other cryptocurrencies, it is, therefore, very volatile, subject to the game between supply and demand.
Although they can always be converted into euros, dollars, and other traditional currencies, States are not obliged to accept them as exchange goods.
The technology behind Bitcoin is dated compared to that of many other more recently established cryptocurrencies.
Bitcoin is the first cryptocurrency in the world, the most famous among investors and the most widely used. Services related to the world of cryptocurrencies, such as ATM cash machines, have been created for the exchange of Bitcoins and universally accept this currency.
As a digital currency, Bitcoin allows you to make transactions completely anonymously, through a virtual wallet.
According to experts, the fixed offer of 21 million acts as a future guarantee, preventing the collapse of the exchange rate and ensuring certain stability to the currency.
If you do not want to invest directly in Bitcoins, you can take advantage of the price fluctuations of the digital currency also in a “traditional” way, through derivatives, financial assets in all respects.
What are the top expensive ways to purchase Bitcoin?
Buying Bitcoins with PayPal
You can buy Bitcoins on authorized exchange sites, such as Plus500, IQ Option, and eToro. Most of these sites accept PayPal as an exchange method. PayPal is also a safer payment method than a credit card.
Buying Bitcoins with cash
Cash is accepted by ATM Bitcoin ATMs also present in Italy, often Inside Info tobacconists and ticket offices. You can also buy Bitcoin with cash on peer-to-peer exchange sites, such as Paxful and LocalBitcoins, where you will find many other investors looking for a counterparty to sell or buy virtual currency.
Buying Bitcoins with your credit card
Exchange sites that operate with cryptocurrencies often accept credit cards as a payment method. Among them are Coinbase, Bittrex, CoinBar, Binance, Kraken, and Poloniex.
Conclusion: You can also buy Bitcoin with PostePay, by debit card, by bank transfer, by prepaid cards (even those that contain cryptocurrency), or through other circuits similar to PayPal, such as Skrill.