Since the concept of decentralized currency was introduced, Bitcoin has been in the headlines. 

Bitcoin is a decentralized virtual currency that has no physical existence. It is not linked with any brand or government, for that matter. So people who buy cryptocurrencies can purchase this currency and spend it anonymously.

A cryptocurrency is produced via a digital mining process that uses Bitcoin. It involves lending computer power to various buyers using blockchain technology. In exchange, they receive bitcoins that can be converted into any currency.

Several businesses have started accepting Bitcoin as a payment mode, but this currency’s mainstream use still needs to be improved.

Bitcoin cannot be purchased everywhere except for specific locations. For example, you can buy in Canada using a Bitcoin credit card. So, ensure that your site should enable you to make a safe purchase. 

But you must be wondering:

  • Why does this cryptocurrency continue to make headlines? 
  • Is it safe to purchase bitcoins via credit card?
  • Why is there a location barrier? 

Let’s dive in and find out.

7 Things You Should Know About Bitcoin

Since we are going back to the basics of Bitcoin in 2022, here are a few things you should know about it.

Bitcoin is Regarded Differently in Various Countries

One of the reasons why Bitcoin is so popular among the masses is because governments do not regulate it. That said, progressive governments ensure their citizens can buy cryptocurrency without hesitation.

For instance, Canada, Japan, and Australia welcome Bitcoin and treat it like any other currency. You have sophisticated options to buy or sell bitcoins using a Bitcoin visa card in Canada if you live in Canada.

Because of the initiatives like these, we see a staggering growth in Bitcoin ownership in Canada. According to the Bank of Canada’s 2021 report, 13% of Canadian citizens own bitcoins, which is astonishing.  

On the other hand, some governments still need more high-end resources. They don’t have the infrastructure to monitor Bitcoin transactions. But that doesn’t stop the citizens from buying it.

It’s Not Completely Anonymous

It will take us years to finish if we try to explain why Bitcoin isn’t completely anonymous. So, we will keep it as familiar as possible.

Contrary to what has been portrayed for years, Bitcoin was never wholly anonymous, and neither is it today.

Government agencies and hackers can track everything happening on the internet, including the buying and selling of Bitcoin.

For example, suppose a hacker or someone from a government agency can connect various nodes to the Bitcoin network. In that case, they will have sufficient data to determine where a specific transaction originated.

There are other things regarding the anonymity of Bitcoin, and you should do thorough research before purchasing.

Bitcoin is Available in a Limited Amount

Satoshi Nakamoto created Bitcoin, and when it was founded almost a decade ago, the creator said it was only available in a limited amount. Nevertheless, more than 19 million bitcoins have been mined, and the number continues to grow.

One of Bitcoin’s significant characteristics was its limited supply of coins. According to the creator, no new bitcoins will be created even if the total number of mined bitcoins reaches 21 million. Therefore, the total supply of Bitcoin will stand at 21 million as determined at the time of creation.

Most Popular Cryptocurrency

Although other cryptocurrencies are available in crypto, bitcoin tops it all. Last year, the coin appreciated as high as $70,000, so you can know how many people would be interested in investing in Bitcoin.

People have started to invest in this currency frequently, and even the leading world governments are trying to break into the crypto world.

Multinational firms such as Microsoft, REEDS, and Overstock.com are among the most prominent names that use Bitcoin as a mode of payment. As Bitcoin grows in popularity, more multinational firms and international brands will accept it.

The “New Gold”

In 2018, China closed down exchanges to prevent citizens from investing in Bitcoin. But that gained more popularity and has also been labeled the New Gold. Previously, the people who used to invest their savings in gold are now opting for Bitcoin.

Multiple Options to Buy & Sell Bitcoin 

Progressive and forward-looking countries understand this shift and are trying to pave a smooth way to invite more investors.

They are launching different gateways to buy & sell Bitcoin more conveniently, including eTransfer. The platform makes it very easy & convenient to buy, sell & transfer bitcoin.

Some other options include,

  • Buy Bitcoin from the closest Bitcoin ATM via credit card.
  • Use your digital wallet to buy & sell Bitcoin.
  • Purchase from an authorized seller on top crypto exchange platforms.

Remember that purchasing bitcoins from authorized sellers on various platforms minimize the risk of being scammed.

You Have to Account for Bitcoin

Although the laws regulating Bitcoin are still under consideration, the USA considers it a real currency, unlike other countries.

According to the IRS, Bitcoin and other cryptocurrencies are tangible assets, like bonds and stock exchanges. So, if you have invested in cryptocurrency but don’t account for it on your yearly income taxes, you can be held accountable for tax evasion.

As we mentioned earlier, bitcoin is now referred to as digital gold. People must account for their withholdings once laws are passed, and the currency is regulated.

Final Verdict

As we live in digital currencies are familiar with the name “Bitcoin.” It is the cryptocurrency that changed the horizon of the financial markets. Today, we have a long list of cryptocurrencies, but none seems to have matched the hype that Bitcoin already has.

It’s been years, and this cryptocurrency has seen a lot of ups and downs. For example, it went as high as $70,000 in the previous year but stands at $27,000 today. But it never ceases to garner interest as more people have recently turned to Bitcoin.

The basics discussed in this post must have made it easier for you to make your first investment in bitcoins. However, if you’re a new investor, you should start with small investments to see if the playing field is smooth enough.

Leave a Reply

Your email address will not be published. Required fields are marked *

Explore More

How to select a crypto spot trading platform

November 15, 2022 0 Comments 0 tags

With the increase of crypto spot players, choosing the best crypto spot trading platform has become the most popular topic. Some players will judge the security of the platform, and

Why do Web3/Crypto Products Need Great UX Design & Research?

November 8, 2022 0 Comments 0 tags

The cryptocurrency market is booming. Thousand crypto and Web3 startups were established over the past decade to enter the market. Why are some crypto startups more successful than others?  Research

Ways to Identify the Next Big Cryptocurrency

October 19, 2022 0 Comments 0 tags

Although cryptocurrency is considered a speculative investment or just another bubble by some people, the fact is that those who were able to foresee its future and held on to