4 things I’ve learnt about bitcoin

It’s a bitcoin bonanza! The world (from the news stories and articles that pop up in my radar) seems to be slightly obsessed with this cryptocurrency. I did some research to discover more about it and pulled together 4 slightly unusual bitcoin facts.

 

  1. Bitcoin is becoming more accessible: bitcoin futures 

    Being a new currency, bitcoin is currently quite difficult to invest in. You need to go through a couple of different websites to actually buy it, move currency from an online wallet to a “physical” wallet (for which if you loose the key, the money can never be accessed!), and platforms are still quite unstable.

    Bitcoin future contracts:”[O]blige a buyer to pay for something at an agreed-upon price at a certain date in the future. They can be used to make a bet on which way the market for a product is going to move. They can also be used to short a market, or bet that prices will fall.”

     Similar to a “buy now pay later” kind of thing. If you bet that the value of bitcoin will rise, you will get a lot of returns. Otherwise, if the value decreases, you don’t get your money back.


  2. What HODL means

    Originating from a bitcoin forum as a mistype, HODL means Hold On for Dear Life.

    Essentially, it is a long-term investing strategy of investing… and forgetting about it. This is how I use investing to live a rich life! Although bitcoin is currently moving a lot quicker than stocks and shares so it may be worth keeping an eye on.


  3. Cryptokitties

    … exist and are adorable!

    It is a game where users breed and trade digital cats using cryptocurrencies, like Bitcoin. According to TechCrunch, people have spent over $1 million on kitties…!

    In a really perceptive, and hilarious, YouTube video by Crypto Investor, he claims they “have been testing the limits of the Ethereum network”. By making it a more accessible route into cryptocurrency, platforms like Coinbase appeared to have a much higher sign-up rate than normal. After all, who would want to own one of these cute cats?!


  4. Is it an investment?

    Depending on your strategy, bitcoin can be used as a way to make money fast (if the markets are rising) or something to add to your investment pots. But use with caution – the value of cyrptocurrencies, especially bitcoin, really fluctuate.  This chart on bitcoin prices shows the highs and lows the market goes through, definitely not for the faint-hearted!

    I would recommend not putting money in cryptocurrencies that you can’t afford the lose. You may triple your investment, but you may also lose the whole thing. Let me know how you get on with this wild ride!

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