fbpx Skip to content
Click Here

Special Columns

  • From Hot Mess To Success
  • The Happiness Press

Around The Home

  • Buying & Selling a Home
  • Cleaning
  • DIY & Home Improvement
  • Gardening
  • Home Decor
  • Home Ownership & Maintenance

Business & Career

Encouragement

Entertainment

  • Celebrities
  • Movies & TV
  • Music

Faith & Christian Living

Family Life

  • Parenting
  • Pets
  • School & Education

Finance

  • Budgeting
  • Debt
  • Trading & Investments

Health & Wellness

  • Diet
  • Exercise
  • Running

Holidays & Celebrations

Humor

Lifestyle

  • Beauty & Fashion
  • Food & Drink
  • Fads & Trends
  • Hobbies & Crafts
  • Life Hacks
  • Reading & Writing

Musings, Opinions, and Editorials

News & Current Events

Politics

Random Stuff

Relationships

  • Marriage

Self-Improvement

  • Planning & Organization

Social Issues

Sports

Technology & Social Media

Search
Close this search box.
MENUMENU
        • Around The Home
          • Buying & Selling A Home
          • Cleaning
          • DIY & Home Improvement
          • Gardening
          • Home Decor
          • Home Ownership & Maintenance
        • Business & Career
        • Encouragement
        • Entertainment
          • Celebrities
          • Movies & TV
          • Music
        • Faith & Christian Living
        • Family Life
          • Parenting
          • Pets
          • School & Education
        • Finance
          • Budgeting
          • Debt
          • Trading & Investments
        • Health & Wellness
          • Diet
          • Exercise
          • Running
        • Holidays & Celebrations
        • Humor
        • Lifestyle
          • Beauty & Fashion
          • Food & Drink
          • Fads & Trends
          • Hobbies & Crafts
          • Life Hacks
          • Reading & Writing
        • Musings, Opinions, and Editorials
        • News & Current Events
        • Politics
        • Random Stuff
        • Relationships
          • Marriage
        • Self Improvement
          • Planning & Organization
        • Social Issues
        • Sports
        • Technology & Social Media
Search
Close this search box.

Bitcoin: Have you invested yet?

  • November 3, 2021
Written by: Judy Dudich
  • Finance, Trading & Investments

Are you investment savvy? If so, good for you! I have great respect for people who have a natural aptitude for numbers and percentages and all-things-financial. I’m not one of them, but admire those who are. What I do have, however, is an intense love of learning. The specific topic doesn’t particularly matter. I just love to learn. Those who know me in person might tell you that I spend an exorbitant amount of time reading, researching and studying. They’d be right. One of the things I’ve been studying about of late is Bitcoin. Again, I am NOT a financially or investment-minded person. I do have somewhat of an entrepreneurial spirit in me, though, so it behooves me to learn as much as I can about such things.

I have several friends who have invested in Bitcoin. (Don’t worry. If you’ve never heard of it, just stick with me in this post and you will hopefully gain a basic understanding by the time you reach the end.) It’s a decentralized digital form of cash. (Wait, what??? Digital cash? HUH???) A lot of high-powered people have launched a campaign against this type of cryptocurrency . (That’s another term that refers to Bitcoin and other, similar systems.) From what I can tell, most of the naysayers are either bankers or government officials. I assume that they don’t like the idea because the system pretty much eliminates the need for intermediaries, such as banks and governments. lol The goal of this post is to provide basic information about what Bitcoin is and isn’t. It will hopefully give you enough to go on to spark your own interest to learn more and, perhaps, even to invest. (I haven’t done that yet but am definitely considering it.)

What exactly IS Bitcoin?

As mentioned earlier, Bitcoin is a form of digital currency. But, what is that? It’s basically a money-like asset that exists in electronic (digital) form. There are several types of digital currency, including cryptocurrencies and decentralized digital currency, as well as central bank digital currency. Think of this post as a 101 class, sticking to the basics. Just know, for now, that Bitcoin is decentralized digital currency, meaning that transactions occur through a peer-to-peer network without government or bank oversight, although you must link your initial investment to a bank account. However, beyond that, the bank has no oversight over your transactions.

This type of currency is a form of “fiat money,” which means that it’s not backed by gold or silver. It’s value is determined by credit worthiness. In other words, supply and demand determines its value. Each unit (for lack of a better word) is, in fact, a file stored on a smart phone or in “digital wallet” on a computer. A blockchain powers the transactions. A blockchain is an open-source code that creates a shared public ledger (think: permanent record) of every transaction. You can secure transactions through “keys,” either private or public.

Bitcoin miners confirm transactions

Within this decentralized digital currency community are people known as “miners.” (They’re also sometime referred to as “nodes.”) They are owners of high-speed computers. Their job is to independently confirm each transaction. They are compensated with bitcoins for their work. You can become a miner, but it requires you to invest in a sophisticated, high-powered computer system.

In simple terms, how does it all work?

The easiest way to explain the system is to say that you invest cash in exchange for a fraction of a bitcoin. You can then make purchases from merchants or peers who agree to accept this form of currency. Remember that value of a “unit” fluctuates according to supply and demand. When you invest cash, you’re taking a risk that the value of the fraction of the bitcoin you receive will increase in relation to the U.S. dollar in the future. You can transfer bitcoins to anyone at any time, anywhere. There are even bitcoin ATMs.

As you research this cutting edge form of digital currency, you’ll learn that there are various terms that refer to types of “wallets,” or places where you can store bitcoins. For instance, you can store your currency in a digital cloud and access it through a desktop PC, a browser or an app on a smart phone. If you prefer, you can also transfer bitcoins to a device (like a thumb drive) that you can carry with you. It’s important to research “wallets,” to become familiar with the terminology and to ensure that you understand the differences between the various types of storage.

How much is one whole unit worth right now?

At the time of this writing, a single bitcoin is worth $60,992.20. Remember, when you invest, you are investing in fractional amounts. You might decide to pay $100 for your initial investment. You would receive the fractional equivalent of value in ratio of the current worth for one bitcoin. Make sense? Using the current value at the time of this writing, if you were to invest $100, you’d receive 0.0016 of a bitcoin in exchange. However, as time goes on and the value (hopefully) of a whole unit increases, your 0.0016 that was equivalent to $100 U.S. dollars at the start, would be worth more in U.S. dollars down the line.

Benefits of investment

Getting down to the bare bones of it all, the following list shows the “pros” of investing in decentralized digital currency:

  • No government or bank oversight
  • Private, secure transactions, anytime, anywhere, with anyone
  • Fewer potential fees
  • Transactions not tied to personal data or information
  • Reduces chances of identity theft

Potential downsides

Those who pooh-pooh the idea of decentralized digital currency say there are several possible downsides, including these issues:

  • Some wallets are considered potential targets of hackers
  • Use limited to companies that accept this form of payment
  • Not covered under investor insurance
  • Scammers are out there (Example: Average Joes saying, “Pay US and we will invest for you!” Don’t fall for this!)

There are typically four ways to buy bitcoins. You can purchase through a cryptocurrency exchange, such as Coinbase. There are also numerous investment brokers offering this type of currency investment. You can purchase bitcoins through miners or from peers.
Many people hesitate to get in on this trend, stating that it is a speculative and volatile investment (unpredictable). Others say it’s safe enough, as long as you don’t investment more than 10% of your overall financial portfolio.

If you’ve already invested in bitcoins and want to share your experience, we’d love to hear about it!

 

 

  • Judy Dudich
    Judy Dudich

Share THis

Judy Dudich
Judy Dudich
Judy Dudich resides in the beautiful woods of Pennsylvania, where 24 acres of land and a home-office provide the perfect setting for her writing ventures. Mom of 10, Grammy to seven -- sharing the love and joy she finds in Christ and living her best extraordinary-ordinary life!
All Posts

You Might Also Like

Your 10 rights as a taxpayer in America

Becoming frugal requires these 3 habits

Ease financial stress by doing without these things

5 ways to lower common expenses

Tackle debt with these 6 tips

Increase cash flow with these 4 jobs

Error furious emoji -- The Hot Mess Press

Costly errors: There are typos and then there are TYPOS

cashless, hands holding cell phone and a credit card

Would a cashless society be good or bad?

Recent Posts

Daylight savings time- are you ready to fall back?

3 crazy facts that will make your head spin

Babies—will you find out early what you’re having?

Four tips to survive house-hunting in a crazy market

Government intervention is changing life in the US

Elders share wisdom for healthy living

Hip pain and other symptoms associated with heart disease

Are you playing pickleball yet?

Subscribe

Never miss a post!

Enter your email address to subscribe to The Hot Mess Press and receive notifications of new posts by email.

Around The Home

  • Buying & Selling A Home

  • Cleaning

  • DIY & Home Improvement

  • Gardening

  • Home Decor

  • Home Ownership & Maintenance

Business & Career

Encouragement

Entertainment

  • Celebrities

  • Movies & TV

  • Music

Faith & Christian Living

Family Life

  • Parenting

  • Pets

  • School & Education

Finance

  • Budgeting

  • Debt

  • Trading & Investments

Health & Wellness

  • Diet

  • Exercise

  • Running

Holidays & Celebrations

Humor

Lifestyle

  • Beauty & Fashion

  • Food & Drink

  • Fads & Trends

  • Hobbies & Crafts

  • Life Hacks

  • Reading & Writing

Musings, Opinions, & Editorials

News & Current Events

Politics

Random Stuff

Relationships

  • Marriage

Reviews

Self-Improvement

  • Planning & Organization

Social Issues

Sports

Technology & Social Media

Special Columns

From Hot Mess to Success

The Happiness Press

THE HOT MESS PRESS specializes in the publication of online news, media, entertainment, fiction, nonfiction, and human interest stories via original content, aggregation and open discussion. “News for people who hate the news.”

Contact | Privacy Policy

All content © 2015-2020 Vertū Marketing, LLC. All rights reserved. Images used with permission.