Bitcoin

So You Want To Become A Bitcoin Millionaire?

Bitcoin

Whenever you have an idea allocating the hard-earned assets you probably think of stocks and bonds. There are certainly other You commodities, currencies, and whatnot. But the situation of lingering out into a mutual fund manager’s office and negotiating about Bitcoin seems bad if the second person is not tech-savvy.

The digital currency Bitcoin introduced in 2009,  is exchanged through its own payment network. You can store these coins in a virtual wallet. This is essentially a and has a decentralized, peer-to-peer currency that is dependent on cryptography. It provides facilities for currency generation and transactions. A good way to restrict double-spending, computers are known as “miners” receive transaction fees and free Bitcoins in exchange for running a proof-of-work system.

So hereafter the introduction of Bitcoin, we start to view the ways to become a Bitcoin millionaire.

“Do You Take Bitcoins?”

Bitcoin is a digital currency that should be treated essentially as a speculative vehicle for geeks. Basically, it could not be used as easily as your local currency which you can use to pay your day to dau utility bills. Not long ago, it was used to buy banned drugs you could have bought illicit drugs.” Silk Road” was its main channel. But the FBI has closed down “Silk Road” earlier this year, making all these activities nearly impossible.

Here you can also see that some legitimate vendors have taken to Bitcoin, and started to purchase real products and services with digital currency. 

Richard Branson who is a member of the Virgin Group has also decided to accept Bitcoins through his Virgin Galactic. Reddit also allows you to use the Bitcoin circuit to buy Reddit Gold.  It is still not possible to shop your everyday use items with Bitcoins, but you can buy a trip to space. As some local vendors have started accepting Bitcoins,  most of the demand for the currency has been fueled by speculators, rather than early adopters.

Due to its immense volatility, using Bitcoins in everyday life would be extremely risky anyway. Say you buy a TV for $1,000 which might have cost up to 10 Bitcoins last month and now after one month it’s just one Bitcoin now. With such volatility, any serious shopping or business done with Bitcoins is likely to result in one party losing out on a lot of value. 

Bitcoin History

Let’s take a view of Bitcoin’s history in brief.  In the year 2013, Bitcoins were trading for either less than $10 each or not much over. It was in the year 2013 when Bitcoins experienced a surge in their value and until April its value reached over $200. Although by April 16, Bitcoins had lost almost half their value.

This is quite enough to show you bitcoin’s volatile nature. You can only make predictions but no one knows what the future holds for Bitcoin

How To Make A Million With Bitcoins?

To make millions out of tour Bitcoins, there are two options: mine or trade. The option if mining is beneficial, as long as the markets remain active you can basically make money for nothing. But the problem is, this whole exercise of mining is very tough, time taking and energy-consuming. Also turning your computer into a miner will likely make it noisy and heat up. 

It could be only beneficial to you if you have access to some serious computing power and you don’t have to pay the bills.

Conclusion

Making money by trading Bitcoin seems to be a more realistic way. Back in 2011, it was possible and easy too to buy Bitcoins for $10 at one day and sell them at $1,000 the next day. They delivered a profit of $990 per Bitcoin. It was profitable at that time when Bitcoins were cheap. Its price was around $10,000 in 2011, making you a millionaire today.

But earning a million with Bitcoins today is not at all impossible. But you will need some capital. The price of Bitcoins can fluctuate at any time. There is a risk lying in the day trading of Bitcoins too. But it is also true that opportunity originates from volatility. In any case, you should take your time to come to the decision of investing in Bitcoins. If you are going to invest with the hope that Bitcoin is going to be traded by foreign exchange dealers, market makers, and institutions one day, it still has to travel a long journey. 

Again if you are quite sure of the Bitcoins price fall, you need to short the cryptocurrency in any way you can. It is full of risk initiatives, but you would be lucky if you get rich when the bubble pops. In brief, you could either choose to get creative or join an exchange that offers such services.

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