The Ultimate Guide to Bitcoin 2022
Unless you’ve been living in a cave for the past 10 years, you’ve probably heard of Bitcoin. What you might not know is that Bitcoin has become one of the most valuable assets in the world.
The Bitcoin revolution began in 2009, and since then the coin has made significant progress, becoming widely accepted by mainstream businesses and investors. Nobody can deny there have been ups and downs along the way, but Bitcoin has proven an excellent choice for the savvy investor.
Investing in Bitcoin can seem a little daunting if you’re new to the world of crypto, which is why we’ve put together our ultimate guide to Bitcoin 2022 where we break down the Bitcoin facts and figures.
Satoshi and the rise of Bitcoin
Bitcoin is certainly the most famous virtual currency, but it might surprise you to know that it wasn’t the first. The first well-known one was E-gold. It ran from 1996 and was backed by real gold guarantees. At its peak in 2008, it had over 5 million users.
Unfortunately, E-gold proved to be vulnerable to abuse due to its opaque and centralised nature, so it finally folded in 2009.
It was also in 2009 that Bitcoin hit the scene. A mysterious and anonymous character known as Satoshi Nakamoto created the first decentralised currency and invited other people to start using it. And so, the Bitcoin revolution began.
Satoshi mined the first Bitcoin block, and until this day has more Bitcoin than anyone else, with approximately 1,000,000 BTC at a current value of around $38 billion, he is one of the richest people in the world.
His real identity is still a mystery, and wild speculation from journalists continues until this day. Whoever he really is, he’s unquestionably one of the most interesting characters in history, and his ability to keep his identity secret is admirable.
One anomaly is that whoever the real Satoshi is, he hasn’t touched his Bitcoin accounts since 2010, despite them being worth billions of dollars. He has made no communication since 2011 when he declared that he had moved on.
He (or possibly they) has changed the use of money forever and has built a viable alternative to traditional fiat currencies. Since 2009, the rise of Bitcoin has continued apace.
The Bitcoin facts
Bitcoin is undoubtedly controversial. Many enthusiasts believe that it’s the future of currency, whereas the doubters continue to insist it’s a speculative bubble just waiting to burst.
The mainstream media seem to be in love with spreading misinformation about Bitcoin, so with this in mind, let’s take a look at some Bitcoin facts.
What is Bitcoin and how does it work?
Bitcoin has no physical banknote or representative coin. It’s traded solely via digital transactions and was the first truly decentralised digital currency. It’s completely decentralised and not issued by any government.
You can transfer Bitcoin to the other side of the world with nothing more than an internet connection. You simply send the desired amount of Bitcoin from your wallet address to the wallet of the receiver. The process is usually complete within minutes, unlike bank transfers which can take several days to execute.
You can store Bitcoin via digital addresses and transfer them via blockchain, an encrypted technology. Bitcoin is open-source, which means freelance developers have contributed to its success and continue to refine its development until this day.
Can Bitcoin transactions be traced?
Contrary to popular belief, Bitcoin is not totally anonymous. You can protect your privacy with some effort, but Bitcoin stores transactions performed on the blockchain network.
This means that anyone with the know-how can see the transactions and balance of a Bitcoin address. While you might not need to give details such as your address or bank account details, there will still be slivers of your information left behind whenever you use Bitcoin.
The good thing for fans of Bitcoin anonymity is that the identity of the address’s user is unknown. Your identity can only be revealed through the purchases you make or a clumsy error, such as publishing your Bitcoin address on a website that can be linked back to you.
It’s recommended that you only use a Bitcoin address once and that you familiarise yourself with ways to protect your privacy before making transactions. That is, of course, if you wish to remain anonymous. Otherwise, trade away!
How to buy Bitcoin 2022
There are many ways to buy Bitcoin in 2022, including through a Bitcoin exchange, private seller, and even using Bitcoin ATMs. You can buy Bitcoin using practically every currency under the sun, and cash, credit cards, or transfers from your bank account are all options to fund your Bitcoin purchase.
There are various Bitcoin exchanges such as xcoins.com, which will show you the steps to easily and instantly buy Bitcoin, as well as other cryptocurrencies.
How to store Bitcoin
Bitcoin has a reputation for being complicated, but it’s surprisingly easy to use. You can buy, sell, and trade your Bitcoin effortlessly in 2022 without having to know all the technical terms or the specifics of how Bitcoin and blockchain actually work.
When getting started, the first thing you need is a Bitcoin wallet so you can store your coins safely and securely. This can be installed on your smartphone or laptop or even in the cloud. Popular examples of web-based Bitcoin wallets are Electrum, Armory, and Blockchain.com. Bitcoin Wallet for Android is a good option and allows you to easily make transactions via tap to pay or using a QR code.
Your wallet will enable you to create your first Bitcoin address, and you can create more whenever needed. You simply share your address with whoever wishes to pay you, and they can transfer Bitcoin to you. In practice, it is a simple process!
Using Bitcoin in 2022
The Bitcoin revolution is now in full swing. On Blockhain.com alone, there are more than 81 million Bitcoin wallets in use.
Many mainstream businesses now allow payment in Bitcoin. Companies that accept Bitcoin include Microsoft, Expedia, Starbucks, and Amazon.
In 2022, Bitcoin is now accepted as a legitimate way to pay for anything from a sandwich to a holiday, and it’s estimated that over 15,000 locations worldwide accept Bitcoin.
It’s important to note that the value of Bitcoin fluctuates widely on any given day, so you should familiarise yourself with the market before you commit a set amount of Bitcoin to buy something.
Part of the fun of using Bitcoin is learning to understand the market conditions and using that to make a profit by predicting the next turn of events.
How to make money with Bitcoin
Want to make money with Bitcoin? The key is understanding the market and then learning to predict what’s about to happen. Easier said than done, of course, but if you take the time to do the research and acquire the necessary knowledge, it is possible.
Bitcoin expert Jeremy Liew has predicted that Bitcoin will reach $500,000 by 2030. Perhaps that seems unlikely to you until you consider just how much the value of Bitcoin has grown since its creation in 2009.
Despite dramatic price fluctuations over the years, Bitcoin’s growth has been exponential, rising from $1 in April 2011 to an all-time high of over $68,000 in November 2021. Yes, the price has gone down from time to time, but it has always recovered.
Buying and holding Bitcoin is a waiting game, unless you’re extraordinarily fortunate and buy at just the right moment. But HODL (hold on for dear life), as this strategy is known, is the safest approach for those looking to make money with Bitcoin.
If you’re up to the challenge, you can day trade Bitcoin instead. Day trading is when you buy and sell your crypto on the same day, profiting from small fluctuations in the market.
Investing in Bitcoin 2022
There are fantastic opportunities available with Bitcoin at this moment in time, whether it’s taking the HODL approach or dabbling in a spot of day trading.
It’s difficult to know what will happen with stocks and bonds due to the uncertain times we live in, so the informed investor would be well advised to consider investing in Bitcoin as part of their overall investment plan.
Bitcoin is regarded as the best performing asset of the decade, and there’s no reason to think it won’t perform well over the next 10 years.
There are many unknowns that make Bitcoin predictions difficult. History, though, has shown Bitcoin has tremendous potential for growth, so it makes perfect sense to include it in any investment strategy.
The Future of Bitcoin
The popularity of Bitcoin means it’s almost certainly here to stay. The number of users around the globe is expanding daily, and it’s now a viable alternative to using traditional fiat currencies.
Bitcoin ATMs are becoming more prevalent, and they make international transfers to friends or family quick and easy. They’re simple to use and can facilitate sending cash to your loved ones, which they can withdraw as local currency at the other end.
The number of companies that accept Bitcoin is increasing all the time. With huge corporations like Microsoft and Expedia now taking Bitcoin as a valid payment method, others are likely to follow suit.
The value of Bitcoin can fluctuate rapidly (even in one day). Still, there are significant profits to be made when you begin to understand the way Bitcoin works and learn to identify opportunities in the market.
Bitcoin has a reputation for instability, dropping significantly and then rebounding, but as it’s not beholden to any government this cryptocurrency has always played to a different tune. As the world’s currencies suffer, it remains well-placed to become a viable and desirable alternative to traditional fiat currencies.
If this happens, those seemingly wild predictions of considerable gains in the value of Bitcoin become more likely to happen.
As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making any investment decision.
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