The Ultimate Guide to Bitcoin in 2020

24/03/20

The Ultimate Guide to Bitcoin in 2020

Have you heard about the many fantastic opportunities Bitcoin has to offer, both for the rookie and expert investor? There are even teenagers becoming millionaires using Bitcoin, and recent estimates show that there are more than 18,000 Bitcoin millionaires.

The Ultimate Guide to Bitcoin

Bitcoin has been around since 2009 and has made significant progress in becoming widely accepted by mainstream businesses and investors. Nobody can deny that there have been many ups and downs along the way, but Bitcoin has proven an excellent way to make large profits for the savvy investor.

Investing in Bitcoin can be a little daunting in the beginning. Fear not, though. In this article, I’ll be bringing everything together and providing you with the ultimate guide to Bitcoin.

How Did Bitcoin get started?

Bitcoin is certainly the most famous virtual currency, but, surprisingly to many, it was not 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 poorly regulated and attracted too many criminal elements for the government's liking, so it finally folded in 2009.

2009 also gave rise to the creation of Bitcoin. A mysterious and anonymous character known as Satoshi Nakamoto perfected E-gold’s software and invited other people to start using it.

How Did Bitcoin get started

Satoshi mined the first Bitcoin block, and until this day, he owns billions of dollars worth of Bitcoin. Lists show him as the 44th richest person in the world.

His real identity is still a mystery, and wild speculation from journalists continues until this day. Whoever he really is, he is 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.

Famously, the first real-world transaction was made by Laszlo Hanyecz on May 22, 2010. He paid 10,000 Bitcoins to order two pizzas. Those Bitcoins would be worth over an incredible US$58 million as of writing. I hope the pizzas were of excellent quality, and he enjoyed them!

Bitcoin: 5 Basic Points You Should Know

Bitcoin is undoubtedly controversial. Many enthusiasts believe that it is the future of currency, whereas the doubters remain harbingers of its doom.

Even those people who have never owned a Bitcoin account seem to have an opinion. Some even doubt if Bitcoin is really legal. (It is!)

The mainstream media seem to be in love with spreading misinformation about Bitcoin. With this in mind, let's take a look at some of the facts.

What are Bitcoins, exactly?

Bitcoin has no physical banknote or representative coin. It is traded solely via digital transactions. It was the first truly global digital currency, and it is decentralized and not issued by any government.

All you need is an internet connection to transfer Bitcoin to the other side of the world. 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 transfer them via blockchain, an encrypted technology. Bitcoin is open-source. This means freelance developers have contributed to its success and continue to refine its development until this day.

Are Bitcoins anonymous?

Contrary to popular belief, Bitcoins are not totally anonymous. You can protect your privacy with some effort, but Bitcoin stores transactions performed on the blockchain network.

Are Bitcoins anonymous

This means that anyone with the know-how can see the transactions and balance of a Bitcoin address. While you might always 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 anonymity is that the user of the address's identity is unknown. Your identity can only be revealed through the purchases you make or a clumsy error, such as putting your Bitcoin address on a crowdsourcing site or similar.

It’s recommended that you only use a Bitcoin address once, and that you familiarize yourself with ways to protect your privacy when dealing with Bitcoin before making transactions. That is, of course, if you wish to remain anonymous. Otherwise, trade away!

How do you buy Bitcoin?

You can buy Bitcoin online using real money - US dollars, UK pounds, etc. You can purchase through a Bitcoin exchange or, in some cases, private sellers. Cash, credit cards, or transfers from your bank account are all viable methods to fund buying Bitcoin.

There are various Bitcoin exchanges such as Xcoins.com, which will show you the steps to easily and instantly buy Bitcoin.

How do I begin using Bitcoin?

Bitcoin might have a reputation for being overly complicated, but now in 2020, it is a straightforward currency to utilise. You can begin using Bitcoin with no risk before you have even mastered all of the technical terms.

Firstly, you need to have a Bitcoin wallet. This can be easily installed on your smartphone or laptop or even on the cloud. Popular examples of web-based Bitcoin wallets are Electrum, Armory, or Blockchain.com. Bitcoin wallet for Android is famous amongst smartphones and allows you to easily make transactions via tap to pay or utilizing a QR code.

Your wallet will enable create your first Bitcoin address, and you can create more whenever needed. You simply share your addresses with whoever wishes to pay you, and they can transfer Bitcoin to you. In practice, it is a simple process!

How many people use Bitcoin, and which companies accept it?

Estimates state that there are over 42 million Bitcoin wallets and 7 million active Bitcoin users in 2020.

Many mainstream businesses now accept Bitcoin. Some examples would be Overstock, Expedia, Whole Foods, and Microsoft.

How many people use Bitcoin, and which companies accept it

Bitcoin in 2020 is now accepted as a legitimate way to pay for anything from a sandwich to a holiday. There are estimated to be over 15,000 locations worldwide that accept Bitcoin.

It is important to note that the value of Bitcoin fluctuates widely on any given day, so you should familiarize yourself with the market before you commit a set amount of Bitcoins to buy something.

Part of the fun of using Bitcoins is learning to understand the market conditions and using that to make significant profits by predicting the next turn of events.

How Do People Get rich Using Bitcoin?

The key to getting rich through Bitcoin is understanding the market, then learning to predict what is about to happen. Nobody pretends that that is easy to do, but the fact that Bitcoin has created 18,000 millionaires is testament to the notion that it is indeed possible.

There are many industry experts with an excellent track record such as James Altucher and Jeremy Liew, who have predicted that one Bitcoin will reach $500,000 to $1 million in value in the next few years. When you consider that as I write this, the cost of one Bitcoin is around $6,000, the potential to become a Bitcoin millionaire is still apparent.

You should also consider that the price of Bitcoin has increased by 9 million percent over the last ten years. It might go down from time to time, but it has always recovered.

Buying and holding Bitcoin will always be a waiting game unless you are extraordinarily fortunate and buy at the exact right moment. There is even a slang term for buying Bitcoin with the hope that it will one day rise in value. "HODL" means Hold On for Dear Life. That’s pretty funny if you think about it.

Buying Bitcoin, however, might not be the most effective way of using it to make profits, which leads me nicely on to my next topic...

Other Opportunities with Bitcoin

One fantastic side-effect of the emergence of Bitcoin as a force is the associated business opportunities that it has brought with it.

There are several ways to make money here, which many people consider to be an additional option aside from buying and selling Bitcoin. They range from tiny profits to legitimate business ideas. Let's look at some of the more interesting ones.

Bitcoin Affiliate Programs

If you have a strong internet presence, you might be halfway to making a good income through Bitcoin Affiliate Programs. I have always found that people have a natural curiosity about Bitcoin. It is seen as cool, or at the very least, interesting.

There are an estimated 7 million regular users of Bitcoin. That leaves literally billions of other potential Bitcoin clients to target.

There are some excellent Bitcoin Affiliate Programs around which pay some high commission rates (Xcoins currently offers one of the most competitive referral programs anywhere paying a flat $10 to the affiliate, $10 to the new user, and 20% of all fees generated on affiliated accounts forever!) If you are savvy at internet marketing, this is an exciting opportunity to make some serious money from Bitcoin without investing a massive sum of money.

Create Your Own Course and Teach About Making Money from Bitcoin

If you have a talent for writing and teaching (as well as promoting yourself!), there is a tremendous opportunity to teach people about investing in Bitcoin.

There seem to be courses teaching just about anything… Amazon FBA, Sales Funnels, Facebook Marketing - all promoted through affiliate sales.

More often than not, the buyer's only hope of making a profit is to become an affiliate and sell the course. People are still under-informed about Bitcoin, and there is a legitimate opportunity to teach people about how to make money from it.

It would involve putting together a series of video lectures, proper coursework and study materials, and creating a way to interact with your students. For the right person, this is a fantastic money-making Bitcoin idea.

Accept Payment via Bitcoin for your Business or Service

If your business or service has an online presence, you should consider accepting Bitcoin. It will appeal to the millions of Bitcoin users, and the ease of transaction and convenience will allow you to gain clients and even charge a higher price.

It is quite simple to set up, and it could prove to be lucrative in the long-term.

Work in the Bitcoin Industry

The majority of people still have little knowledge about the ins and outs of Bitcoin. They don't know how transactions or the blockchain works. They would struggle to take up a job involving Bitcoin.

If you have studied Bitcoin, perhaps even turned a little hobby into an obsession and have learned everything there is possible to know about Bitcoin, this could be the path for you.

Salaries tend to be high in the Bitcoin Industry, and you can usually take a remote position and work from anywhere in the world. Earning a fat salary and living on a white beach Island somewhere sounds like a good life!

You may even be able to get paid in Bitcoins and keep your knowledge of the latest Bitcoin advances up to date. There are some excellent associated ways to make money with Bitcoin. These are just a few of them. Doing some more research will reveal more opportunities.

Bitcoin in the Time of Covid-19

It is a sad time for the world at the moment. Many people have gotten sick and died from the Coronavirus. Many people have also lost their business and savings.

It has become a modern reality that we need to stay away from other people as much as possible and practice social distancing. One useful way to utilize Bitcoin at this time is as an easy way to transfer money. If you have a family member on the other side of the world who needs help, it’s quick and easy (and contactless) to transfer Bitcoin to them.

If they already have a cryptocurrency wallet, it will take seconds to make a transfer. If they don't have a wallet and are unfamiliar with how to use Bitcoin, there is also a quick, secure, and simple way to transfer them some funds.

If they find a Bitcoin ATM, the process is simple. For example, you can take dollars to your local Bitcoin ATM, convert them to Bitcoin and send them the code. They simply convert the Bitcoin on their end and withdraw local currency from the Bitcoin ATM.

It couldn't be easier, and it does not involve getting into a long queue in a bank. It is practically instant and far quicker and cheaper than using a bank transfer or money remittance centre.

Bitcoin: The Truth

There are fantastic opportunities available with Bitcoin. Whether it is using the HODL buying and holding method or working hard with some other possibilities, there is money to be made.

Bitcoin: The Truth

It is difficult to know what will happen with stocks and bonds due to the uncertain times we are living in, but the informed investor would be well advised to consider investing in Bitcoin as part of an overall investment plan.

I have always liked the idea of investing in a stable business (Bitcoin-related or otherwise), diversifying with a selection of stocks and bonds, and leaving a lump sum aside to invest and see what will happen with Bitcoin.

It has made so many people rich already, that it is worth taking a shot at. Bitcoin was by far the best investment you could have made between 2010 and the end of 2019. Who is to say that by 2029 it won’t have performed as spectacularly again?

There are many x-factors which we can't predict about Bitcoin, but history has shown its tremendous potential for growth, so it makes perfect sense to me to include it in any investment strategy.

Final Thoughts on Bitcoin in 2020 and Beyond

The popularity of Bitcoin means that it is most likely here to stay. The number of users around the globe is expanding daily, and it is now a viable alternative to using traditional fiat currencies for many people. Although Bitcoins are still relatively new, their popularity is increasing.

Bitcoin ATMs are becoming more prevalent, and they make international transfers to friends or family fast and straightforward. They are simple to use and can even facilitate sending cash to your loved ones, which they can withdraw as local currency at the other end.

While not all businesses accept Bitcoin directly yet, it is being adopted by many more mainstream companies each year. The fact that huge companies like Microsoft and Expedia now take it as a valid payment method means others are likely to follow in the short-term.

The value of Bitcoin can fluctuate rapidly (even in one day). Still, there are enormous profits to be made when you begin to understand the way cryptocurrency works and learn to identify opportunities in the market.

The turmoil brought by the Coronavirus pandemic means we live in uncertain times. The stock markets of the world have suffered a considerable downturn already.

Bitcoin has been unstable also, dropping dramatically and then rebounding. As it is not beholden to any government, it 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.

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