Free Guide on How to Earn Bitcoin in 2020
When we have money to invest, many ideas come to mind. It could be property, the currency market, bonds, and stocks, or similar. Considering investing your time or money in Bitcoin, however, is often regarded as thinking outside the box for most people. It probably wouldn’t be the first thing that a mutual fund manager would recommend.
Bitcoin has been around since 2009. Essentially, it’s an electronic currency that is exchanged through its own designated payment network. The bitcoin you accrue can be saved in a virtual wallet, which is totally anonymous and can only be accessed using your unique bitcoin account.
One of the great attractions of using BItcoin is that it can be described as a safe cryptocurrency. It is a peer-to-peer currency that utilizes cryptography to make transactions and currency generation. It is increasingly seen as a safe and practical way to make financial transactions.
There have been many millionaires created during the Bitcoin boom. There are still some outstanding opportunities with Bitcoin for the savvy investor. Read on to discover some great ways to make money with Bitcoin at present.
A Brief History of Bitcoin
Bitcoin was founded in 2009 by an individual known as ‘Satoshi Nakamoto’. This appears to be a pseudonym for a mysterious figure (or figures), the true identity of whom remains unknown. Everything is kept deliberately obtuse concerning this character. He is claimed to be a 44-year-old Japanese citizen, said to have created Bitcoin and the first decentralized digital currency.
He is also credited with implementing the first blockchain. Various people have claimed to be Satoshi Nakamoto, so it seems that the very origin of Bitcoin will always remain a mystery. To add to this strangeness, Nakamoto’s first Bitcoins remain unspent. They would have been worth somewhere in the region of $19 billion at the peak of Bitcoin’s value. This would have made him one of the world’s wealthiest people had he decided to sell.
The whole concept of cryptocurrencies was new, and in the early days, they struggled to be taken seriously as a legitimate investment concept. The first years of Bitcoin were plagued by wild price fluctuations and a struggle to attract attention. It didn’t disappear from view, but it hardly seemed a viable long-term investment strategy either.
The whole concept of cryptocurrencies was new, and in the early days, they struggled to be taken seriously as a legitimate investment concept. The first years of Bitcoin were plagued by wild price fluctuations and a struggle to attract attention. It didn’t disappear from view, but it hardly seemed a viable long-term investment strategy either.
The big breakthrough in the value of Bitcoin took place in 2013. It finished 2012 at a lowly $13.27, and on November 27, it finally broke the thousand dollar mark, peaking at $1,030. That represented an astonishing 7,761 percent raise in less than 11 months. A key factor contributing towards Bitcoin reaching this level is that it was supported by the US game creator Zynga.
This was the first time that the government recognized Bitcoin as an essential part of the financial system and took steps to regulate it. This helped with the hitherto “outlaw” image that Bitcoin had suffered from. It helped with the credibility of the product. 2013 also saw the term “Bitcoin” added to the online Oxford dictionaries for the first time. We did not know at that point, but it was the beginning of a roller-coaster of considerable changes in value.
September 2017 saw the currency break the $5,000 barrier. November and December 2017 saw it break the $10,000, then $18,000 barrier, but then soon after losing one-third of its value in 24 hours and drop back below $14,000. Bitcoin investing was clearly not for the faint of heart during this period.
By February 2019, the Bitcoin price was back to $3,339. Since that day, it has risen to again approach $13,000, and as of writing has settled at $8,622. It is one of the most profitable and unpredictable investments of all time! It was even described as the “biggest bubble burst in history” by a famous economist.
How is Bitcoin Valued, and What Happens When it Runs Out?
Determining how Bitcoin is valued is a complicated process with many factors to consider. It is never issued by a central bank, there are no balance sheets, and it is not backed by any government. Regular economic factors such as inflation or monetary policy do not affect Bitcoin in the same way as regular investments.
The more important factors are the demand and supply of Bitcoin. These include the cost of the mining process that produces Bitcoin, the increasing amount of competing cryptocurrencies, the rewards for verifying transactions by Bitcoin miners and increasing government regulations worldwide. There is a limited supply of Bitcoin, which is capped at 21 million. As of December 2019, over 85% of the total Bitcoins available have already been mined. There are measures put in place to ensure that the mining of Bitcoins is slowed over time, and the last will not be mined until 2140 or so.
There is increasing competition to consider. While Bitcoin is by a long way the most well-known, there are hundreds of alternatives. These include Bitcoin Cash (BCH), Litecoin (LTC), XRP, and Ethereum (ETH). There are low barriers to enter the market, so there will always be new competitors. It will be interesting to see how long Bitcoin remains as the most popular option.
An exciting new competitor will be the recently announced cryptocurrency backed by the Chinese government. Details are still sketchy, but they appear intent on making it a force to be reckoned with, but also subject to more regulations. Having all of these to choose from is a good thing for cryptocurrency investors as it helps to keep prices down.
There has been researched carried out, which has clearly shown that the cost of production is directly related to Bitcoin’s market price. Although Bitcoins are a virtual product, there are certain costs involved in producing them. The main one is the consumption of electricity during the “mining” process. When 2140 nears and the last Bitcoin is ready to be mined, the question of what will happen is an interesting one. Mining will likely continue as miners compete to receive the transaction fees from the users of the blockchain.
These fees will have increased dramatically over the years due to the lessening numbers of Bitcoins available. They will have long become more attractive than mining for the increasingly tiny amount of Bitcoins being made available. It is also difficult to foresee what changes will happen in the future. The Bitcoin network will undergo changes in regulation and reward. It is conceivable that it may lose its popularity entirely before the last Bitcoin is close to being mined.
How Do I Make Millions With Bitcoin?
Due to the wildly fluctuating value of Bitcoin, it is difficult to estimate how many millionaires have been made by using Bitcoin. Last year there were close to 18,000 Bitcoin accounts that had a value of over $1,000,000, so it is safe to say that there are many thousands of millionaires created by Bitcoin.
The point we are interested in here is how do we make money using Bitcoin? It might not make you millions, but there are various ways to profit from being involved in Bitcoin. Here are five of the most powerful ways.
Mining for Bitcoin
Bitcoin mining is a popular method for profiting from Bitcoin. The days of being able to make enormous profits mining with your own personal computer setup are most likely over forever. The sophisticated hardware and high electricity prices required to mine effectively mean Bitcoin is going to be a problematic way to profit. However, there are other mining options. Cloud mining has been prevalent for the past several years. The great attraction is that you don’t actually need to do anything. There is zero investment in hardware or software.
You simply take out a one-time contract and wait to receive your earnings every month. Of course, this will be variable and depend on the success of the plan that you choose. There have been some fantastic successes, and some startups have made a great deal of money for their investors. Genesis Mining and Hashflare are two of the more legit cloud mining companies. If you can find the next big success and invest at the right time, you could make substantial profits.
Investing in Bitcoin
The simplest way to get involved with Bitcoin is to invest by buying it. Many people choose this method, and it is perilous due to the volatile market and lack of reliable information about market trends. It is a real gamble that might pay off greatly one day, depending on your good fortune. Some people just buy whatever Bitcoin they can afford and then leave it. They are purely interested in the long-term. They believe in the future of crypto and plan to cash it in for a massive profit at a later date.
This is an entirely unscientific method, but who is to say it is wrong? After all, a similar investment strategy ten years ago would have probably made you into a millionaire today. There are also those folk who study everything they can about cryptocurrency and read every prediction about the future of Bitcoin before deciding when will be the perfect time to invest.
To my mind, investing in Bitcoin can be a fantastic success or a complete disaster. There is too little of a track record to be able to make accurate predictions. I personally have some Bitcoin saved in my online wallet, and I am just hoping for a dramatic profit at one unspecified day in the future. It is clearly a good idea to do as much research as you can. However, buying Bitcoin as an investment is a risk that can change your life and either make you a millionaire or bring you to the point of bankruptcy. You should only risk an amount that you feel comfortable with losing. Study the market so that you have the best chance of buying at the right time and trust in the future.
Become an Affiliate Marketer for Bitcoin Products
Many industry experts believe that the future of Bitcoin is incredibly prosperous. There are predictions that one Bitcoin will increase in value to $1,000,000 within the next ten years. Wouldn’t you like to be involved with this future boom market?
The process of signing up is straightforward to our affiliate program is simple, and we’ll be more than happy to provide recommendations about how to use this opportunity to make some serious money. Our payouts are generous and it is an extremely attractive product to be affiliated with. Follow this link to find out more, and begin making a better future for you and your family today.
Make Bitcoin Loans
Making loans with interest attached has been one of the most lucrative ways of making a passive income since before the days of Jesus Christ. This principle also works well with cryptocurrencies. If you already have a significant amount of Bitcoin or are in the process of acquiring some, this is a new cryptocurrency business model to consider. You can make substantial profits (over 10 percent sometimes) making Bitcoin loans, or you can use these as a supplementary way to earn extra income with your Bitcoin portfolio.
Bitcoin loans can be carried out through a trusted lending platform such as Bitbond, and the interest rates are high. Bitcoin lending can be compared to peer-to-peer loans as you will be taking on the role of a financial institution. You need to use your judgment and treat this method as if it were any other type of loan. You should make sure you are confident you will be repaid on time and carefully consider who you make a loan agreement with.
Teach People How to Profit from Bitcoin
Cryptocurrency is still something entirely new for most people. There is a great untapped market of people desperate to learn more about this seemingly straightforward way to get rich. Creating online classes that teach people how to make a profit from Bitcoins is a potentially profitable business. You can sell your programs and associated documents or books related to the subject at a high profit.
The truth is, there are too few people who can write or teach knowledgeably about the opportunities associated with Bitcoin. If you have in-depth knowledge and the skills to accurately present it to students, you can make a significant profit.
In time, you can make an even higher income by creating your own affiliate program. You can get other people to work on your behalf to promote your products, further multiplying your revenue by harnessing the power of cryptocurrency.
The Future of Bitcoin
With the massive rise in the value of Bitcoin over the past few years, it is tempting to think Bitcoin is about to take over the currency world. Daniel Krawisz, who is a recognized cryptocurrency expert, predicts that it will become the dominant trading medium worldwide in the near to distant future. Krawisz also predicts that a single coin will be worth $100 million by 2030. The famous software developer and potential Libertarian Party Presidential candidate John McAfee has also predicted a similarly prosperous future for Bitcoin.
As usual with stocks, commodities and currencies, it is difficult to make any predictions with any degree of certainty when it comes to Bitcoin. However, it is becoming accepted by conventional businesses, it has gained credibility with mainstream people, and now even the Chinese government is setting up a competitor.
There are, of course, an increasing number of competing cryptocurrencies. Still, it is fair to say that Bitcoin is the most well-established and will remain the most trusted choice for a long time to come.
Final Thoughts about the Viability of Making Money with Bitcoin
There are many specific ways to make money with Bitcoin in 2020. The early days of mining vast amounts from your own computer may be over. Still, as Bitcoin has become more mainstream and accepted, the ways to make money from it have diversified.
You can still trust in the long-term future of Bitcoin and make an investment to hold for several years. This is pretty much a case of blindly hoping for the best and seeing what happens. Still, if experts like McAfee and Krawisz are right, it could be an extremely lucrative risk to take.
For the right person, there is a significant profit to be made through becoming a Bitcoin product-related affiliate. And you can even create your own products that teach about the opportunities that Bitcoin represents. Making Bitcoin loans through a platform such as Bitbond has excellent potential. As long as you safeguard your chances of getting repaid on time there are tremendous rates of interest to be made.
All in all, the future looks fantastic for Bitcoin. It will face increased competition, certainly, but will always be known as the original coin and remain the most famous. You can expect many more turbulent periods, indeed, but it has proven to be remarkably resilient. With enough research, Bitcoin stands to help you make a considerable profit, whatever trading background you come from.