Bitcoin Cryptocurrency For Beginners 2021

Speaker 1: Bitcoin has been one of the most talked about investments over the past couple of years. It’s made a lot of people rich, but guess what? It’s also made quite a few people poor.

The reason being is because they’re uneducated about the investment that they’ve made. And that’s the whole point of this video. I want to give a beginner’s guide to Bitcoin so that you’re actually educated before you choose to make the investments or not choose to make it. We’re going to go over the four key questions related to Bitcoin in this video. One, what is Bitcoin and what makes it so powerful to Bitcoin going to be the future adopted cryptocurrency three. How do we go about investing in Bitcoin and for Bitcoin? Actually a smart investment to make? Can I earn a lot of money here or am I just going to lose it? What’s the story? So Bitcoin is the biggest form of cryptocurrency, it’s the most well known one, and it’s the one that’s been the most adopted. Now, to understand cryptocurrency, you first need to understand what money is. Money is just an agreed upon store of value accepted by everyone as a form of payment. Money in itself doesn’t actually hold any value. You know, back in the day, you could have exchanged money for gold. However, today money is not backed by anything. The only thing that makes money valuable is the fact that we’ve all agreed and accepted it as a form of payments. Now, the problem with money is that first it’s centralized, it’s controlled by the governments and the central bank. This means with the dollar or any other currency, you’re entirely at the whim of their choices. If they choose to constantly print money, which is what they’re doing, and devalue it. You don’t really have a say.

Your hard earned money in the bank gets eaten away by inflation and worth less. Another problem is if you choose to send money overseas, you get hit with exchange fees and exchange rates. If you choose to make transactions again, you’re often hit with more fees. The great thing about a cryptocurrency like Bitcoin is it solves all of these problems. First, it is not centralized. It’s decentralized. You don’t just have to rely on one central bank’s ledger of keeping track of everyone’s money, which none of us can see. Bitcoin, every computer that participates in the system keeps a copy of the ledger. So it’s basically impossible to take down the system because you’ll have to take down thousands of computers who keep a copy of the ledger so it’s safer. Everyone can see it transparent. Not one central authority has control over it. And arguably the most important is that’s protected against inflation. With Bitcoin, there’s only twenty one million total coins in the system, so you can’t print more and evaluate. So you look at all of the problems that is associated with currency fiat money and cryptocurrency solves all of it. But that brings us onto the question. What normally happens with a currency or just business in general is one normally rises to the top and takes all of the market share. For example, with search engines, you don’t know que Alta Vista, Infoseek or the web. No, you only know Google. You don’t use live journal, Friendster or MySpace. You use Facebook. One thing dominates the entire sector and that’s most likely what will happen with cryptocurrency.

So the question is, will Bitcoin be the cryptocurrency of the Internet, the one that rises to the top? The answer is that it most likely will be at least it’s leading the race. So this is what Jack Dorsey, the CEO of Twitter, said about it’s the Internet is something that is consensus driven and is built by everyone. And anyone can change. The course of its bitcoin has the same patterns. It was built on the Internet. I think the Internet once a native currency, and I think Bitcoin is probably the best manifestation of that so far. At the end of the day, money is just about mass adoption. It’s about everyone agreeing that it’s an exchange of value. And right now, Bitcoin is the closest to getting this done. Most people who haven’t heard of Litecoin Dash Manero Rypple, but you ask people on the streets if they know Bitcoin and it’s likely that they do. OK, I want to just quickly go over the process of how you go about investing in Bitcoin, and then we’re going to answer the most important question, is Bitcoin actually a good investment? Essentially, there’s just three steps that you need to go over to buy Bitcoin. The first is you need a wallet, just like with cash. You need a wallet to put it in. It’s the same with Bitcoin except Bitcoins, a digital wallet. So you use the wallet for sending, receiving and storing Bitcoin. There are two types of wallets that you can get. One is the software wallet, which can be run on your computer or mobile device. A software wallet is better, easier with just small amounts of bitcoin. And two is a hardware wallet, which is the device that connects to your computer and is considered the much safer option.

OK, so once you have the wallet, you need to buy some Bitcoin and you do this through an exchange. Some of the more well-known examples of these Jemini and Coinbase, finally, once you bought the Bitcoin through an exchange or you need to do is withdraw it from the exchange and send it to your wallet. It’s a pretty simple process. I don’t want to go over it, too, in detail. What I’ll do is leave a link in the description to a video. If you want a nice step by step guide on how to do it safely. But first you need to decide if Bitcoin is actually a good investment or not. So I’ve personally been investing for a long time now, and the best way that you can think about investing is through the lens of risk and reward. How much can I lose? But on the other hand, how much do I stand to gain and what are the chances of each? So let’s start with the risks of Bitcoin. And I’m going to be honest and upfront with Bitcoin. There is a chance that you lose everything Bitcoin as a currency that is 100 percent technology based and its reliance on people eventually adopting it and using it as a currency. As time goes on, more and more people are learning about assets, using nets and adopting nets. But this is no guarantee that in the future they will continue to do so if everyone decides to sell it and not think about it anymore, bam, the investment goes. But then on the other hand, the potential reward for Bitcoin is huge. Its reward is way higher than the risk. So let’s think about the reward. I’m going to give you a path of measuring this. So gold gold is similar to Bitcoin and a lot of ways, although it’s physical, it doesn’t have much use other than a store of value. It can be mined just like Bitcoin. It has a limited supply, just like Bitcoin. It’s used as a safety hedge from an economic crisis just like Bitcoin. So if we look at the total worth of all of the gold in the world, it comes to around 12 trillion dollars.

As of making this video bitcoins total market cap is around 600 billion dollars. That’s around 20 times smaller than gold. If Bitcoin were to grow to the same market cap as gold, which a lot of experts think it could, we would see at 10, 20, 30 times return on investment. And I’m not saying that it will definitely get there, but it could. That’s why the way I see Bitcoin as an investment is there’s a lot more potential to gain. Then you have to lose. If it was lose everything or double your investments, it would be even. But no, the potential is a lot more than double. So you’re on the right side of the risk reward equation. But the thing is, you don’t want to bet your whole house that Bitcoin is going to go up. Remember, the risk is that you could lose everything. So you only rarely want to invest what you can afford to lose, whether that be around one percent of your portfolio or perhaps your more gutsy, there may it may be more, but play this investment smartly. I wouldn’t throw the whole kitchen sink at this cryptocurrency. Nevertheless, at the end of the day, Bitcoin is superior to the fear money that we’re currently using and all of the problems that come with it. Think about Tesla 10, five, even three years ago, people were saying that Tesla is a joke of a company and now it’s the biggest car company in the world. Why? Because it had superior technology and was creating a better version of transportation. It’s the same thing with Bitcoin compared to the flawed money system that we’re using is just better overall. And if you look at the times that we’re in, they’re very abnormal.

You’ve got the Fed printing trillions of dollars every year, devaluing the dollar by the second. You’ve got governments with more control than ever with the lockdown’s business has been shots, crazy politics, bitcoin. It doesn’t rely on any one institution. So it may not be the dumbest idea to have some investments. And it’s your future self might. Thank you for it.

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