The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

What Exactly is Bitcoin? 7 Facts About Bitcoin

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Investing
Reading Time: 3 mins read
Bitcoin-AskTheMoneyCoach
99
SHARES
1.6k
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Bitcoin became all the rage among many investors in 2017 – and even people who don’t regularly invest have gotten in on the action with this cryptocurrency.

If a friend has been telling you how much money he or she made from buying bitcoin, you may be wondering: Should I invest in bitcoin?

Some of you may also be thinking: What exactly is bitcoin anyway?

Well, before you plunk down your hard-earned dollars to jump into the bitcoin market, you should at least know some facts, and not just listen to all the hype.

Here are 7 facts about bitcoin, as well as some insights into deciding whether bitcoin is right for you.

7 Facts about Bitcoin

Fact #1: There are no actual coins 

Bitcoin is an electronic currency that exists only on the Internet. Bitcoin is money built online with “blockchains,” through a decentralized cash system that has no defined national barriers.

A blockchain is basically a digital ledger for anything and everything that has virtual value.

Fact # 2: Bitcoin has a lot different names

Speaking of “virtual value,” you’ll also hear people call bitcoin “virtual currency.”

Other generic names for bitcoin include: crypto-currency, digital currency and even software currency.

Fact #3: Bitcoin is just one of many crypto-currencies

Even though bitcoin is super hot right now, it’s definitely not the only game in town. Some people favor other cryptocurrencies, like ethereum, which hasn’t seen the same explosive price gains as bitcoin, and therefore proponents say has better upside potential.

Besides bitcoin and ethereum, some other crypto currencies include: NEO, Litecoin, Monero, Dash and Zcash.

Fact #4: Supply and demand affects bitcoin, like all investments

If you’re wondering what’s driving the price of bitcoin, some of it – besides pure investor speculation – is the law supply and demand.

As you probably know, when an item has high demand but low supply, the price for that item will rise. That’s part of what’s going on with bitcoin.

By various estimates, there are roughly 16.7 million mined bitcoin, and as many as 20 million bitcoin overall, currently in circulation. And right now, there’s awful lot of demand, so that’s pushing up bitcoin prices.

Fact #5: You can buy bitcoin fairly readily

Many people in the U.S. buy bitcoin from Coinbase. It’s a company that acts like a digital wallet. They let you connect your bank account to your Coinbase wallet so you can easily makes future payment transfers.

Coinbase also lets you automatically buy bitcoin buying at regular intervals. (This might sound like dollar cost averaging, but it’s not).

Fact #6: Bitcoin is definitely in a bubble

Right now everyone from Uber drivers and hairdressers to schoolteachers and cashiers are buying bitcoin – even though many of these folks have never previously invested a day in their life.

That’s one reason bitcoin is up from $1,000 in the beginning of the year to well above $19,000 as of this writing, in late December 2017.

Still, bullish bitcoin advocates say bitcoin could hit $40,000 or even $50,000. Meantime, detractors argue that bitcoin is extremely over-priced, has no underlying value, and therefore its price trajectory is completely unsustainable.

Regardless of which viewpoint you believe, bitcoin meets the traditional definition of a “bubble” based on recent pricing and market trends alone.

Fact #7: The bitcoin market is tiny

Bitcoin is currently a $300 billion market – but that’s extremely small compared with other major asset classes. For example, compare bitcoin’s size to some other well-established assets that have been around for well over a century:

  • Bitcoin: $300 billion market
  • Gold: $6 trillion market
  • S. stocks: $25 trillion market
  • S. bonds: $38 trillion market

As you can see, bitcoin has a long, long way – some say impossible – to catch up to more established financial markets.

Now you at least know the basics about bitcoin.

In my next article, I’ll explain the pros and cons of investing in bitcoin to help you make a “yes” or “no” decision about purchasing this cryptocurrency.

Tags: Bitcoins
Previous Post

4 Smart Ways To Shop Smart, Entertain And Decorate On A Holiday Budget

Next Post

Keeping Your Financial New Year’s Resolutions

Related Posts

Trade and Travel Live-2023 Teri Ijeoma

2023 Trade and Travel Conference Special Offer

by AskTheMoneyCoach

Teri Ijeoma's Trade and Travel Conference is an excellent opportunity for those interested in learning how to trade and travel. The conference offers a chance to learn from Teri Ijeoma, the founder of Trade and Travel, and connect with a community of like-minded individuals. This post contains affiliate links. If...

Two businessmen working together, forex diagrams hologram and big business data analysis. Double exposure hologram with candlesticks and chart. Concept of teamwork and trading

The Basics of Forex Trading for Beginners

by AskTheMoneyCoach

Forex trading can be lucrative for anyone willing to put in the effort to learn the basics. While it can initially seem overwhelming, with some knowledge and practice, anyone can become a successful part-time forex trader. This article will cover the ten basics of forex trading that every beginning trader...

Web wide portrait of happy African American man investor recommend financial app on cellphone, white mockup screen. Millennial male trader work trade online on computer. Stock market, crypto.

7 Benefits of Cryptocurrency in 2023

by AskTheMoneyCoach

Cryptocurrency, which is a form of virtual currency utilizing secure cryptography techniques and independent of government or financial institutions, is becoming increasingly popular in the dynamic digital landscape. This article will delve into the seven benefits of employing cryptocurrency in 2023 without introducing new information or facts. What is Cryptocurrency?...

Forex trading, Young man using smartphone and laptop computer with Forex icon on VR screen on desk, Online investment. Business, internet and technology concept.

The Basics of Part-Time Forex Trading

by AskTheMoneyCoach

Trading foreign currency has become a popular side hustle to generate part-time income. The global market for currency exchange offers lucrative investment potential, but prospective traders still need to understand the fundamentals to make the most of their predictions. The foreign exchange market – or forex market – is a...

Man holding planet by two hands for earth day and saving energy environment concept ,Element of this image from NASA and 3d render.

Understanding ESG Investing and Its Benefits to Businesses

by AskTheMoneyCoach

Many companies have considered adopting ESG strategies because they believe the world is changing. Besides, some investors feel obligated to support companies with good environmental and social policies. In this article, we will briefly explain what ESG investing is and the benefits of investing in an ESG strategy as a...

Compound Banc App on mobile phone

Compound Banc Launches New Investment App

by AskTheMoneyCoach

Compound Banc is a financial technology (Fintech) company that provides access to institutional-quality real estate investments and products to retail investors. They offer low-cost, tax-advantaged investments with fixed contractual returns, unlike other investment instruments where past performance is not necessarily indicative of future returns. PRESS RELEASE NEW YORK - February...

Trade and Travel

The Epic Guide to Teri Ijeoma’s New Trade and Travel 2.0 Course

by Lynnette Khalfani-Cox, The Money Coach

If you’re considering trading stocks – which is also known as “active investing” – chances are you may have heard of Teri Ijeoma, creator of the popular Trade and Travel course. She’s been featured as the #1 course creator on Teachable and profiled in various media, from Forbes to Black...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1526 shares
    Share 610 Tweet 382
  • What to Do if Your Spouse Stole Money From You

    1308 shares
    Share 523 Tweet 327
  • What to Do If You Can’t Afford to Leave Your Spouse

    1273 shares
    Share 509 Tweet 318
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1129 shares
    Share 451 Tweet 282
  • What Do All Those Strange Codes In My Credit Report Mean?

    899 shares
    Share 360 Tweet 225
  • Which Credit Report is More Important: Equifax, Experian or TransUnion?

    866 shares
    Share 346 Tweet 217
  • Do This Now If Your Wages Were Not Reported

    853 shares
    Share 341 Tweet 213

Categories

  • Bankruptcy
  • Budgeting
  • Building Wealth
  • Careers
  • Couples and Money
  • Coupons and Deals
  • Covid-19
  • Covid-19 Video
  • Credit Cards
  • Credit Reports
  • Credit Scores
  • Crypto
  • Debt
  • Entrepreneurship
  • Family Finances
  • Featured
  • Identity Theft
  • Insurance
  • Investing
  • Loans
  • Paying for College
  • Personal Finance
  • Press Releases
  • Real Estate
  • Retirement
  • Saving Money
  • Scams
  • Student Loans
  • Taxes
  • Uncategorized

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist