How Do I Get Bitcoin

We need to answer the most researched question, which is how to obtain Bitcoin, we will need to provide a detailed explanation about the Bitcoin currency, which has held the interest of many people, specifically those interested in the financial and banking sector around the world. , being one of the mysterious currencies that did not exist on the ground until today, it has not been officially traded at all, either in countries, or at the level of individuals, or banks, but it exists from 2009 to the present. Bitcoin news through our topic entitled Explain Bitcoin.

Read more: What is Bitcoin Halving.

What is Bitcoin

Bitcoin is one of the digital currencies that has appeared recently in the world, as it was created specifically in January 2009, and it is a real translation of a group of special ideas in the mind of the mysterious developer of this currency, who introduced himself. to the world under a pseudonym, and this pseudonym is Satoshi Nakamoto, whose true identity has yet to be verified, Bitcoin conveys a clear message including the promise of lower transaction fees compared to traditional online payment mechanisms).

It is operated by a decentralized authority, unlike government-issued currencies, knowing that there is no official, physical Bitcoin, it exists only in digital form, and along with all Bitcoin transactions, it is verified by a large number of audits. Bitcoins are not regulated by any bank worldwide and are not recognized by any government, and individual Bitcoins are not valuable as a good or service collectively like Altcoins.

With regard to the classification of Bitcoin, it is a cryptocurrency, since the balances of the Bitcoin tokens are maintained using public and private "keys", which are long strings of numbers and letters linked by the mathematical encryption algorithm that is used to create these symbols. , and serves the public key, which can be compared to the account number. The bank as a published address to the world to which others can send bitcoins, that is, a private key similar to an ATM PIN.

Bitcoin working principle

It is one of the first cryptocurrencies to use peer-to-peer technology to facilitate instant payments, and is available to independent individuals and businesses with the computing power to participate in the Bitcoin network, spurred by the rewards of issuing new Bitcoins and transactions. . fees paid in Bitcoin. These can be considered as the decentralized authority that reinforces the credibility of the Bitcoin network, and new Bitcoins are issued to this category at a constant rate, but it decreases periodically and continuously, so that the total supply of Bitcoins approaches 21 million , and at the moment there are approximately 3 million Bitcoins that are not yet mined, and in this way, bitcoin, and any cryptocurrency generated through a similar process) works differently from fiat currency; In central banking systems, the currency is issued at a rate commensurate with the growth of commodities in an effort to maintain price stability, while a decentralized system like Bitcoin sets the issue price in advance.

Bitcoin value

In 2017 alone, the price of Bitcoin soared from just under $ 1,000 earlier in the year to close at $ 19,000, ending the year above 1,400%. Recently, the cryptocurrency has more or less fallen in value, except for some periods of relatively low price numbers, which is the first part of 2019, when prices were around $ 3,500) and relatively higher in June and July 2019, when the prices were briefly. peaked at over $ 13,000), and as of October 2019, Bitcoin appears to have found a new price in the $ 8,000 to $ 9,000 range.

Invest in Bitcoin

There are many Bitcoin supporters who believe that digital currency is the future. Many of those who support Bitcoin believe that it facilitates a faster, no-fee payment system for transactions around the world. Although it is not backed by any government or central bank, Bitcoin can be exchanged for traditional currencies; In fact, its exchange rate against the dollar attracts potential investors and traders interested in playing with the currency. In fact, one of the main reasons for the growth of digital currencies like Bitcoin is that they can be a substitute for national paper money and traditional commodities like gold.

Note that in March 2014, the IRS stated that all virtual currencies, including bitcoins, would be taxed as property and not as currency, as gains or losses on bitcoins held as equity would be realized as gains or losses from capital. normal profit or loss. Therefore, selling bitcoins that people mine or buy from elsewhere, or using bitcoins to pay for goods or services are examples of transactions that can be taxed and therefore we find that investing in this type of currency involves a lot. risks, of which we will speak. about It is detailed in the next paragraph.

Risks of Investing in Bitcoin

There are many risks that accompany financial investment in Bitcoin, the most prominent of which are the following:

Although Bitcoin was not designed as a regular stock investment (no shares were issued), some speculative investors were drawn to digital money after it rallied rapidly in May 2011 and again in November 2013. Consequently, many people are buying Bitcoin for its investment value rather than as a medium of exchange.
The concept of virtual currency remains innovative and compared to traditional investments, Bitcoin does not have a long-term track record or credibility record to back it up. As their popularity increases, bitcoins become less and less experimental; However, after 10 years, it remains, like all digital currencies, in the development stage and constantly evolving.
Investing money in Bitcoin in any of its forms is surrounded by many risks, Bitcoins are considered competitors to the government's currency and can be used for black market transactions, money laundering, illegal activities or tax evasion.
As a result, governments may try to regulate, restrict or ban the use and sale of bitcoins, some have already done so, and another category appears with different rules. For example, in 2015, the New York State Department of Financial Services finalized regulations that require companies that deal with buying, selling, transferring, or storing bitcoins, register the identity of customers, have a compliance officer, and maintain capital reserves, transactions of $ 10,000 or more must be recorded and reported.