Bitcoins has come with a lot of understandable definition on the internet in the past years, but with the way some newbies understands it, some hard earn money has been lost in the crypto space.
In this article, i will be explaining what bitcoins is and what you need to know about bitcoins. read word for word to get the information i am trying to pass to you.
What is Bitcoins:
Bitcoins are a digital asset considered to be a currency or money by the creator “Satoshi Nakamoto” in 2009. though he introduces it as a peer to peer decentralized digital currency that facilitates instant payments.
Ways to understand cryptocurrencies
cryptocurrencies are an internet ledger to ledger ownership and (you can buy as low as 0.00001 to 1 in crypto):
This means when you purchase bitcoins and you store them on a “decentralized wallet” (A crypto decentralized wallet is a wallet that let you secure your bitcoins yourself by providing you with your “private key” or “seed phrase”), you have purchased a certain amount of ledger.
Crypto Centralized wallets: These are wallets that secure your wallet and cryptocurrencies for you by keeping your “seed phase” or your “private key”
This ledger can be as low as 0.00001 to 1 and the ledger name is “Bitcoins”.
What is Bitcoin used for?
Used as a payment: After the break out of Bitcoin project a lot of individuals and companies tends to use BTC as a payment methods and also collect it for payments instead of bank transfers on the internet or pay with cards…
Used for trades: Bitcoin volatile markets gives lots of investors profit and also a lot of loss in the process. you must learn from people before you start to trade any cryptocurrency to avoid losing all your money…
Used as an asset: bitcoins all time high has made people buy to keep just like real estate business you can also hold crypto for a long time and expect a huge return in time.
Do you really think you know what money is ? Read before you start trading Bitcoin…
Money was said to be anything that has value and can be used as a means of exchange…
Is Bitcoin money : If your gold watch still have value after you make a purchase and used it then it is money. Which also make Bitcoin a money if that is the best way you want to put it to your understanding.
Ways to define and understand Bitcoin and other cryptocurrency…
- Bitcoin as a commodity: Even if cryptocurrency like Bitcoin was said to be in form of money, the United States government consider it as a commodity because it can be bought and also be sold in its marketplace like Binance, paxful, coinpaga, coinbase, coinex and so on.
- Bitcoin as money: It can also be defined as money because it has value and it tends to rise and fall in real-time exchange because it also has value, it also tradable in many market place like Binance, coinpaga to buy as many products that you want anonymously.
- Bitcoin as an asset: In the early stage of Bitcoin, it tends to rise when a lot of investors sees it as an asset, not just a commodity that is lying down… bitcoins are used as an asset that rises in hours, minutes, seconds after a purchase of an investor and it also promises a high loss in time if investors are not careful of the time to buy or sell.
- Bitcoin as a product: Bitcoin is a product of “Satoshi Nakamoto” anonymous single or group creator and promoter not Bitcoin on its first lunch. You can define BTC to be a product because it is owned by an anonymous private sector. And can bought or sold to another individual as we do in the traditional market. If you want to be a Bitcoin or any other cryptocurrency trader make sure you have this in mind, “you buy low and you sell higher as you do in your business online or offline” don’t let other definitions stop you from understanding the basic concept of making profits.