Based on a recent tweetstorm of mine…
1/ A #bitcoin decoder: Bitcoin, and the larger category of “data-currencies”, is something you can benefit from right now. You can make money. Bitcoin is both simple and complex, so let’s understand the landscape. It’s volatile, with huge swings up and down. It’s misunderstood.
— Andy Rosic (@arosic) November 21, 2017
Bitcoin, and the larger category of “data-currencies”, is something you can benefit from right now.
You can make money.
Bitcoin is both simple and complex, so let’s understand the landscape.
It’s volatile, with huge swings up and down.
It’s misunderstood.
It’s speculative.
Like sailing across oceans, building railroads, or stock markets, people make the most money in the early days.
What do the bitcoin-curious really need to know?
Turns out, not that much.
Bitcoin is a store of value or a contract.
It is not a transaction mechanism.
Some of the data currencies are transaction enablers, some are both.
Bitcoin is just a value.
Example: with a cash dollar, you get both a store of value $1 and the ability to instantly transact with someone.
Most currencies are backed by a government to dictate their accepted value and usefulness.
Bitcoin is backed by a data contract.
Each bitcoin owner becomes a member of that contract.
There is no central authority.
This is called a “blockchain”, or a set of mirror-image contracts (blocks) connected together in a continuous link (chain).
When everyone has the contract, then no one person needs to “own” it or back it.
Everyone shares it.
Bitcoin can seem expensive.
People ask me if they’ve already missed out.
The answer is no.
Unlike shares of stock, where you often need to purchase whole shares, bitcoin can be purchased in any fragment size.
Want to invest $10, or $100, or $1000?
You can.
This makes bitcoin investment stand out.
There are transaction fees, so carefully consider how often you want to buy/sell and for how much.
Stocks are specific to a single company’s performance.
Not bitcoin.
This can be seen as a risk of less diversity.
It can also be an advantage not being tied to one company’s good or poor decision-making.
The excitement in bitcoin right now is the drama.
I’ve made over 40% on my investment in the last 2-months alone.
FORTY percent.
In TWO months.
There isn’t a stock or investment available performing like this.
There are also huge drops and dips in bitcoin.
I highly recommend buying in and staying in for some period of time.
Security is built into bitcoin.
I spent 5 years pioneering the smartphone payments space (ref: Apple, Square).
Trust me, bitcoin is built on security.
Stay alert, though.
There are many scams, schemes, and tricksters lurking.
With something new and exciting like bitcoin, many unsavory folks want to steal your money.
Check the spelling of the URL you visit to buy/sell.
Don’t just google search, the scams pay for google ads too.
Create tough passwords.
Use 2-factor authentication options – where you have to verify logins from your phone.
Treat your bitcoin investment like gambling.
Play with money that you’re ok losing – whatever your particular tolerance is.
You very well could lose some or all of it.
But more than likely, and with better odds than gambling, you will profit as I have.
Then sit back and enjoy the drama and the ride.
The simplest way to invest in bitcoin is Coinbase.
Create an account, link up your bank, buy coin.
Use the secure wallet.
Watch for at least a small dip in price and buy!
It has historically gone up, so hang tight and watch what happens.
I predicted bitcoin would hit $10k before the end of 2017, and people mocked me.
It’s at nearly $8500 right now…
There are hundreds of data currency variations beyond bitcoin.
The majority of them are worthless, and many are scams.
If you see “ICO” or initial coin offering, this decoder is not enough to help you navigate those waters.
You may have heard big finance people talking badly about bitcoin.
It is hot air and part of the current drama.
Do I need to know about bitcoin mining, and barrels of oil, and forking?
No.
If you’re curious to really understand the underbelly of data currencies, then get reading.
There are wonderful sources of info at inside.com, MIT technology review, and across Medium.
The short answer is that there is fun and money to be had in bitcoin now.
Get off your couch and get to it.
Drop a comment or tweet me to let me know you’re joining in!
Also published on Medium.
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