Bitcoins, often referred to as a peer-to-peer digital cash or a digital cash for short is simply a form of electronic money. It is like an internet version of cash only you don’t need a bank account to use it. You can easily use it as payment to services and goods, but so far not all businesses accept it and in some regions even casinos are unable to deal with it. In view of this problem and the high value of bitcoins (it currently reaches a record high of around $3.2 billion) many people want to know how they can invest in it. Luckily there are several ways to do so. Some of these ways are more risky than others but may offer a higher return in the long run.
The first and most obvious way to invest in bitcoins is by purchasing them.
Like gold, they are mined from the ground and are a bit more expensive than regular coins. The most accessible veins are in Africa. But even if you live in the developed world, like the US, you can still mine a few hundred bitcoins for a relatively low cost. One way of doing this is through what is called pooled mining. With pooled mining you pool together smaller amounts of smaller sized veins and that allows the miners to share the cost of mining them.
Another way of investing in bitcoins is through what’s called a” miner wallet”.
A miner wallet is a special kind of online wallet which only allows people to make transactions with the coins in it. These transactions are kept in a separate location off the Internet where anyone can access them. This makes it impossible for someone to steal your bitcoins using another person’s computer.
The third way to invest in bitcoins is through what’s called a merchant account.
Instead of using your own computer and Internet connection to do all the transactions, you use one virtual account that acts like both a bank account and a currency exchange. To buy bitcoins you can then send them to any participating merchant who will then convert them into local currency. Some of the more popular merchants include Bitfen, FXCM and Bitpond among others. Just about every major online retailer and business accepts at least some form of this sort of payment when customers make online purchases.
There are also different ways that people get bitcoins other than trading them in the traditional sense.
You can exchange them for cash online and transfer them from one place to another. You can also build up a collection of bitcoins and store them in a virtual wallet such as the ones mentioned above. Or, you can even use a service like the ones mentioned above to convert your local currency transactions to bitcoins.
The bottom line is that the future of the economy is based on the future of the bitcoin system.
When the economic problems have been solved through the invention of something like the bitcoin ledger, then people can finally rest assured that their money is safe because they will never have to worry about their money going to waste. People can spend it however they want and that makes it very attractive to merchants. Plus, with all the new jobs being created at home, the possibility of a major gain in mining activities makes the future of the industry look bright for everyone.