One of the side-effects of wearing glasses is that people automatically assume you know everything about Bitcoin, or cryptocurrency in general….or why their computer is doing something weird.  And most of the time they are right.  When it comes to cryptos there is just a ton of shit to understand, and to be honest, if you are not capable of using Google to find a simple answer like, how to reset your Gmail password, then knowing the ins-and-outs of Bitcoin really should not matter to you.  So let’s face it if you are having to ask someone “what the hell is Bitcoin?” what you really mean is “should I get some of this mystery money and how do I do it?” So that is exactly what we are going to talk about here.

But First A History Lesson

There are still some critical points to understand, most of which will matter to you folks looking to just buy and sell.  For starters, BTC began in 2009 and was started by nobody…yep, nobody.  It is a mystery, the “founder” goes by an alias of Satoshi Nakamoto which is similar to that of John Smith in the US.  Around March 2010, 1BTC was about $0.003, let that settle in for a minute [1].  Now, a quick bullet point timeline for you to help the FOMO/depression settle in.

  • Around February 2011 1BTC was valued at $1
  • During June 2013 1BTC hit $100 and then dipped back to $70
  • On January 2014 1BTC hit $1000 and then dipped to the $800s
  • Fast forward to May 2017, 1BTC broke $2000 for the first time
  • Jump to today, December 12, 2017, 1BTC surpassed $17,000

Let’s just dream a minute.  Say you bought or mined, $100 worth of BTC around March 2010, you would have 33,333 Bitcoins, meaning at today’s current value, you would be sitting on over $566,661,000.00 worth of Bitcoin.  Yeah.  Let that sit on your mind for a bit (no pun intended).

Does A Stork Deliver Bitcoin?

Kinda. Not really.  Bitcoin is mined via computers solving algorithms.  Once an algorithm is solved the miner used to get 25 coins, it’s then halved with the growth of inventory.  Only 21 million Bitcoins can be mined [2].  Some say all of them have been mined, some say it’s not possible.  However, regardless, there comes a point when the cost of mining BTC outweighs the daily earning.  For example, if it costs you $50 a day to mine $0.10 worth of BTC per day, you are essentially driving yourself into the hole, on short game.  Hopefully, long-term you make it up with a positive growth of BTC value, which is safe to say will probably happen.  That is where “mining pools” come in place.  Personally, I am not a fan of them.  I have heard of too many pool scams to justify saying it is safe to invest in.  Personally, I say buy and sell cryptos at highs and lows, just like you would the stock market as you will then have more direct control of the trades.

Oh yeah, and some 18-25% of Bitcoins have been lost [3] and will never be recovered.  These are coins that were lost during early stages of BTC life.

Now, at this point, you probably just want to buy some BTC and see what happens.  Cool.  Click on this affiliate link to Coinbase.com and get yourself a $10 credit, along for myself.  I use Coinbase myself, as do hundreds of thousands (maybe millions) of others.  Coinbase is like TD Ameritrade for crypto.  You can buy and sell Bitcoin, Ethereum, and Litecoin and the moment.  Hopefully, more options will occur down the road, but right now these are the main cryptocurrencies that “matter” on the exchange.  These are coins that you can actually use to purchase things online, like hosting from WooPilot.com.

How Do I Profit On Crypto?

That is a great question, and I do not have an answer for that.  You have to just get in it.  I got started with buying/selling BTC back in 2010 and have been buying/selling Ethereum and Litecoin since 2016.  Needless to say, I am not Bitcoin rich compared to those who started very early in the “game” of crypto mining and trading.  I would say that if you want to positively profit on crypto, don’t waste your money on trying to mine, just jump straight to the buy/sell aspect of it.  Above all, like any investment, do a ton of research.  Do not empty out your 401k on BTC because let’s face it, it could reverse all the way back to $1 which would just really suck.

Final words of advice, take all levels of security serious as well.  Utilize dual authentication for your email associated with your Coinbase account and also utilize dual authentication on your Coinbase account.  Just like having cash money stolen from you, the same applies to crypto.  People can, and will, hack and steal your coins and there is no getting them back.

And For Kicks – FAQs:

Q: Ben, do you have Bitcoin?
A: Yes, I have exchanged most of it for LTC or Ethereum which I have mostly exchanged for XRP (Ripple)

Q: Ben, what do you think about cryptocurrency?
A: I think it’s effing great.

Q: Ben, where do I get started?
A: See above.  If you want to know where to exchange and such, shoot me a message on any social media account.

Q: Ben, where do you think cryptocurrency is going?
A: Hell if I know, honest truth.  It could all go tits-up tomorrow.

Q: Ben, how much should I invest in cryptocurrency?
A: I am not your financial advisor, but again, don’t dump everything you have into it.  Remember, investing is just calculated gambling.

Lastly, if you enjoyed this then feel free to donate some BTC to me! Just send whatever you desire to address 1EVPdDydLKCdQRCzBfJoY9tcDsWUWoaEZR

Sources:

  1. History of Bitcoin
  2. Bitcoin Mining Limit
  3. Lost Bitcoins
  4. Join Coinbase (affiliate link)