is investing bitcoin profitable?

Who created bitcoin

The creator of Bitcoin is Satoshi Nakamoto. It is a pseudonym, so it is unknown whether it is a person or a group of people.

Satoshi Nakamoto is the name listed as the creator of the bitcoin protocol, who mines the first bitcoin block and makes the first transaction to Hal Finney.

This user made his last public contribution to the development of electronic currency in 2010.

Until 2016 Gavin Andresen was the most visible figure of bitcoin.

Who controls the bitcoin network?

Although Bitcoin has developers who act as spearheads, nobody controls the virtual currency as nobody can control email development in the sense that it does not have a single owner.

Programmers can improve Bitcoin software, but they cannot enforce a protocol change. This must follow the same rules for all, and these are created in consensus among all users with their decisions about which platforms they choose to operate, for example.

When discrepancies about bitcoin arise, they are resolved among the entire community. For now, there has only been one occasion in which a consensus was not reached, and it resulted in the creation of Bitcoin Cash, a new fork in technical language. For the common public, it would be a new, separate version of the base cryptocurrency with which it shares the detailed history of blocks until separation.

From there, the ‘control’ of the transactions is carried out through the users themselves, who are the ones who validate the blocks of the chain and the security of the transaction since this chain cannot be altered because it is present in thousands of computers around the world, each change must approve the absolute control of the bitcoin users.

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How bitcoin works

For the end-user, Bitcoin is another means of payment, such as the euro, and an asset to invest, such as a share of oil. So is it safe to invest in bitcoin or not? Faced with this question, it is convenient to know that there is a technology behind this entire market that allows the system to be reliable. It is the blockchain technology or chain of blocks that, among other things, prevents the double spending of the currency, that is, that someone can spend the same bitcoin again.

Very briefly, the Bitcoin network is a public accounting system in which each user keeps a copy. Every time someone makes a transaction, it is stored on the users’ computers in a way that is avoided, known as double-spending.

The following video that we share summarizes how bitcoin and other cryptocurrencies work, their strengths and weaknesses:

And for those who want to go further about the operation of Bitcoin as a cryptocurrency, here we also leave you a somewhat more technical version:

What is the blockchain?

The blockchain is the technology behind bitcoin that acts as both a database and a backup for the system. As we have just seen, in a traditional financial system, any transaction is entrusted to a third person (bank, credit card …), who is the one that validates the process. With block technology, it is the users themselves who do it.

The blockchain is like a large book of digital events (transactions in Bitcoin) shared and distributed among many people. It can only be updated from the consensus of the majority of users and, once it is updated, the information cannot be deleted.

In this sense, each blockchain that is added contains verifiable information of all the transactions that have been carried out in the history of bitcoin.
Is bitcoin safe

Bitcoin as a means of payment is safe since carrying out any transaction requires most users’ authorization.

The security of bitcoin is also based on the fact that to access your bitcoins, and you will need to provide your private key. Without that key, no one will be able to access your bitcoins. In the wallets section, we explain what this private key consists of and the difference with the public address; it is something like your bitcoin user, and it will help them send you, and you can send coins.

How to get bitcoins

What do you have to do to get a bitcoin? If you don’t know how to invest in bitcoin, we’ll explain it here: currently, there are three ways to get hold of one of these cryptocurrencies: mine bitcoins, buy bitcoins through a platform and sell something, and get paid in bitcoins.

Of the three formulas to get bitcoins, the first two are the most used unless you have an online store and accept payment with virtual currency.
Mining Bitcoins

Mining is the earliest way to get bitcoins. Mining work involves using powerful computer equipment to solve mathematical problems while acting as guardians of the currency’s security.

To understand it better, it must be remembered that bitcoin is an encrypted code associated with a bitcoin address stored in a bitcoin wallet that does belong to a natural person. These bitcoins can be sent to other people, used to pay, exchanged for another cryptocurrency, or get paid.

Bitcoin, dogecoin, ethereum or Cardano

“There is more to the cryptocurrency market than bitcoin. Like there is more to the equity market than Apple,” said Denis Vinokourov, head of research at digital asset platform Bequant. But with more than 4,000 cryptocurrencies in circulation, according to the data site Statista, finding the ideal cryptocurrency to invest in is not a simple decision.

Although bitcoin remains the highest value cryptocurrency, other exciting options such as ethereum, thether, binance coin, Cardano, dogecoin, and XRP.

Differences between cryptocurrencies: bitcoin, dogecoin, ethereum, and binance coin

For Greg King, CEO of Osprey Funds, a company that invests in digital currencies and other bitcoin experts, the bet is on investing beyond bitcoin. “It makes sense for investors to have a long-term portfolio of bitcoins and ethereums and own a basket of some of the others (cryptocurrencies) to trade,” King said.

Whether in bitcoin or any other asset, investing should be an informed decision and ideally should be based on your risk profile, which is the level of tolerance you have for potential losses of money. Don’t invest more than you are willing to lose.
Platforms for the exchange of cryptocurrencies

By mid-June, a bitcoin coin was worth roughly $ 38,000, which could be above your investment plans, but to invest in bitcoin – and most other cryptocurrencies – you don’t need to buy the coin entirely since you can acquire half or even a tiny fraction of it.

Once we make that point precise, the next thing is to choose the platform on which you will make the purchase. According to Investopedia, the three highest-rated platforms for buying and selling cryptocurrencies are Coinbase and Coinbase Pro, the CashApp app, and Binance. However, these are not the only platforms available, as the list is long.