In an age of technology and the digital world taking over our lives, currency and money matters do not lag behind. A famous form of digital currency called the Bitcoin is steadily gaining popularity among people of all backgrounds. You do not have to be a tech-guru to have at least heard about it, have an interest in it or want to try your hands at it. Making money through Bitcoin is not all that complicated a process as it sounds.
Simply put, Bitcoin is basically a digital or virtual currency not owned by any Government or any banking system. This is one of the biggest reasons for its ever growing popularity. With more and more people not trusting their Governments and the banking system, Bitcoin seems to be the way out or rather a tool of going against the system.
This cryptocurrency is shrouded in quite some mystery. Whether it was created by one man or a group of people is not clearly known. The only known details regarding this currency’s creation are that it was created using the name Satoshi Nakamoto. The Bitcoin system was released in 2009 as an open-source software.
There was a time when it was viewed as a sneaky and untraceable currency only used by criminals and in underworld transactions for nefarious purposes. Now people are slowly opening up to its value, uses, and advantages. Acceptance by people is the most important stage and challenge for any monetary system. Bitcoin is steadily growing in its popularity and acceptance around the globe.
The Bitcoin digital currency system is slowly coming out from a shadowy realm to mainstream life. It can now be used in exchange for products, other currencies, and services like other established currencies. By February 2015 the recorded number of merchants and vendors accepting Bitcoin as a payment exceeded a 100,000.
Bitcoin is a form of money exchange that cannot be monitored by Governments or regulated by any authority. It does not get affected by global economic conditions and recession. As resentment and concerns grow among people regarding their Governments spying on them and keeping unnecessary checks on the monetary side of their lives, Bitcoin is the blinking green signal towards true freedom.
Understanding the Bitcoin system is not as complicated as it first sounds. Consider it a currency, but a digital one, without any central regulatory authority, as is the case with the banking system. It does not belong to any Government neither is it run by a bank. Rather it is truly a system by the people for the people. People who made the system made the software autonomous. It runs automatically and regulates itself based on user activity.
To create a Bitcoin, a computer must generate a correct code comprising of 64-digits. Special software is used to achieve this. Once created, these Bitcoins have to be ‘mined’. This means the code has to be broken using powerful machines and can seldom be achieved by one person using a normal computer. Usually, a group of people brings together their machines’ power to mine Bitcoins. This is how Bitcoins are earned. Though, this is not the only way.
The earned Bitcoins can then be stored in a wallet like any normal currency, only the wallet is digital as well. After understanding the whole process of creating/earning Bitcoins, many questions come to mind. Such as, what if infinite Bitcoins are produced thereby causing it to be devalued, like any normal currency. This cannot happen because the rate of production of Bitcoins is finite. Nobody can create more than a certain amount at a time.
Using Bitcoins to Make Money
Bitcoins are gaining steady popularity the world over. Its value has seen exponential rise since the time it was first introduced. Making money through Bitcoins is easy if you know where to start. Following are some ways to make money using the most popular digital currency ever:
Where to Start
A Bitcoin address and a digital wallet are the two fundamentals of starting the whole Bitcoin business. Before submerging into this world, these two are essentially required.
This is where you store your earned Bitcoins. It is also used for sending and receiving Bitcoins. Wallet services are provided online by different sites. Offline wallets are also available which are safer as compared to sites on the internet.
Next, comes the Bitcoin address. It is not a physical address. It is used for Bitcoin transfers between yourself and other people. All transactions are stored in the Bitcoin system and are called the block-chain.
There are certain websites on the internet called Bitcoin faucets. As the name suggests, they provide you with Bitcoins in exchange for simple things. These things may include checking out ads present on the website. The website earns revenue from these ads placed there and doles out a small sum to users. Although the process is painfully slow and does not result in rapid earnings, it is safe and great for beginners. Just sign up with your Bitcoin address, make sure you have a wallet to store the Bitcoins and start earning.
Earning Bitcoins from Apps
Bitcoins can be earned through certain apps. These apps pay in Bitcoins in exchange for accomplishing small tasks. Tasks may include playing a game, completing an online survey or simply downloading an app on your smartphone.
Bitcoins can be traded in order to make money. Bitcoins should be bought when their value is down and sold when the currency increases in value. You have to be current on market trends and stay updated on news regarding Bitcoin value in order to gain profits from trading activities.
Doing it the Old Fashioned Way
Just like currency notes can be acquired by selling goods or providing a service, Bitcoins can be earned the same way. Many vendors now accept Bitcoins as a legitimate mode of payment. There are websites that offer such services. Bitify is one such website. It sells products for both Dollars and Bitcoins. Escrow service is available on the site. Buyers can pay in Bitcoins after the goods are delivered and services are rendered.
Bitcoin mining is a more sophisticated way of earning Bitcoins used by advance users. Mining requires powerful machines, a lot of energy and time to solve complex algorithms. Once solved, users receive new Bitcoins. Simply put, it is the process of unlocking new Bitcoins. It is quite complicated and not suggested to individuals and newbies.
Instead, individuals can join groups or ‘mining pools’. In a pool, resources are shared by each individual and the earned Bitcoins are divided among the members of the group. Division depends on how much each individual contributed to the pool.
The Bottom Line
It is quite obvious that this system of digital currency is getting all the opposition it can from Governments, regulatory authorities, Banking authorities and the like. So much so that Thailand and China have actually placed a ban on Bitcoins. Many Governments deem digital currencies especially Bitcoin as illegal. It is linked with shady and illegal activities and is considered as a means of money laundering and a tool for criminals. But many people see it differently.
Bitcoin is a digital cryptocurrency which threatens to break the monopoly of Governments and banking systems. It is providing people with the opportunity to break free from their clasp and use a system where they are more in charge. But at the same time, there are also countries which are gradually opening up to the concept.
Canada is the first country in the world which got a Bitcoin ATM in 2013. Users could make deposits and withdrawals from this machine, converting their Bitcoins into regular currency. It was an instant success. Many more countries expressed interest in such machines. Although Robocoin later suspended its Bitcoin related operations, the rate at which Bitcoin is gaining popularity and trust of people is a nod towards its future success.
This currency may take a while to anchor itself in mainstream markets and gain acceptability by authorities. Norway is the first country taking steps towards recognizing it as a force to reckon with. It has decided to tax Bitcoins, making it an asset for the country rather than a threat.
It is true that this system could be misused. Skilled hackers can hack into Bitcoin accounts. Hackers could misuse the money and target innocent users. Some consider it a fad and a system with many vulnerabilities including security issues. But the same is true for the banking system. Regular currency is also prone to theft. Credit and debit card frauds are rampant and online bank account hacks are a reality.
Every system has vulnerabilities. No system is perfect. People are slowly accepting Bitcoin as a reliable currency, having actual value. If it proves itself as a stable system in the future, it will establish a strong foothold in major markets. Since reliance on technology is rampant in society, the day is not far when Bitcoins and other digital currency systems will gain widespread acceptance and application.