Bitcoin is a cryptocurrency that allows millions of people around the world to conduct anonymous transactions without the involvements of banks, credit card companies, or governments. Bitcoin is popular because it is secure as well as convenient. Cryptocurrencies let people from different countries to buy and sell goods and services without needing to worry about fluctuating exchange rates.
The price of bitcoin has exploded in recent months, and investors are flooding into the lucrative cryptocurrency. In the last two years, the price of bitcoin has more than doubled. And many people expect it to continue rising higher and higher as the masses lose faith in paper currencies and government manipulation in the economy.
Investors buy bitcoin for same reasons they buy gold. First off, because Bitcoin is not issued by a government or central authority, it cannot have its value destroyed by inflation. Secondly, like gold, there is a finite number of Bitcoins available in the world. And thirdly, Bitcoin gives people greater control over their wealth so they don't have to keep their savings in a bank that could go bankrupt.
However, despite the strengths of Bitcoin, it will never replace gold. And investors should be prepared to convert their bitcoin holdings into precious metals because precious metals are much safer over the long term.
Transacting in Bitcoin
The first step in any Bitcoin transaction is to get a Bitcoin "wallet". Bitcoin wallets are downloadable desktop or mobile applications that store and transact Bitcoin. The most popular Bitcoin wallet is a website called Coinbase, and it lets users directly link up their credit/debit card or bank account to the applications so they can buy and sell Bitcoins freely. Bitcoin wallets usually charge a small fee on bank or credit card transactions.
After the Bitcoin wallet is installed, the user will receive a personal Bitcoin "address" - this is an anonymous code that is used to send and receive Bitcoins to and from the Bitcoin wallet. Users can receive payments by providing their Bitcoin address and send payments to other users’ addresses.
As soon as Bitcoins are in the Bitcoin wallet, they can be used to securely purchase gold and other hard assets. To purchase gold with Bitcoin, you must first find a precious metals dealer that accepts Bitcoin as payment. The dealer will provide their Bitcoin address. And all you have to do is open up your Bitcoin wallet and send payment to their Bitcoin address. Bitcoin transactions are verified multiple times before they are approved, and the process can take several minutes to complete.
Bitcoin is a popular cryptocurrency, and it is growing in usage and acceptance as a way to conduct business without involving governments and financial institutions. The process of buying gold with Bitcoin is simple. First, you must download a Bitcoin wallet on your computer or phone. Next, you must find a precious metals dealer that accepts Bitcoins, like SuisseGold.com. Send payment to the Bitcoin address they provide, and you are good to go!