Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Bitcoin for Beginners: What You Need to Know

by Powered by eToro
March 27, 2021
in Explore
‏‏‎ ‏‏‎ ‏‏‎ ‏‏‎

OUR STORY                 DISCOVER CRYPTOCURRENCIES                  NEWS AND UPDATES

Don’t know your Bitcoin from your blockchain? We’re here to help.

Is there a Bitcoin barrier to entry? For many curious investors yet to dip their toes in the proverbial waters, the biggest thing holding them back may be summed up in one word – knowledge.

The more you try to wrap your brain around the technology behind Bitcoin, the more confused you may be about its actual investment value. How exactly is Bitcoin mined? What is a hard fork? And proof of stake versus proof of concept? Head-scratchers abound.

If we haven’t lost you yet – good! While you may never master the concepts of blockchain and how cryptocurrency is created, in reality, you don’t need to when it comes to investing. All you really need to know is why cryptocurrency has value, how that value compares to traditional currencies and what investing means in the long run.

With platforms like eToro, users can deposit as little as $50 to fund an account, where you can buy, sell and hold Bitcoin, along with a dozen other cryptocurrencies.

So, what makes crypto different than investing in traditional currency, like the US dollar? Here are a few key distinctions.

Finite supply

One of the big issues with investing in the US dollar is inflation, which has been made increasingly evident during the Covid-19 pandemic. As the US dollar weakens at a more rapid rate, with trillions printed by the Federal Reserve, it’s no shock that investors will look to unique ways to diversify their money.

How does inflation affect Bitcoin? In the current context, it doesn’t. That’s because Bitcoin has a finite amount of 21 million coins, so while the value can increase, the maximum amount in circulation cannot. Currently, there are 18.6 billion Bitcoin in circulation, meaning there is still some left to be mined. As a result, many investors look to Bitcoin as a hedge against the damaging effects of inflation.

Store of value

Bitcoin’s finite supply lends to its store of value over time. While gold was the original intrinsic asset, its cumbersome nature led to it being replaced by fiat (i.e., paper) money. A store of value, meanwhile, is an asset that maintains its worth and can be exchanged in the future with no deteriorating value – this can’t be safely said for current physical US currency.

Bitcoin, meanwhile, checks all the major boxes as a strong store of value over time. It has a steady level of scarcity thanks to its finite supply, it is easily divisible (up to eight decimal points), it has growing use as a utility (i.e., form of currency) in transactions, it’s easily transportable through digital wallets, it’s durable as a non-physical currency and it’s nearly impossible to counterfeit, thanks to blockchain encryption technology.

Institutional investment

The problem with Bitcoin’s value in the past is it was mostly driven by retail investment, which ebbed and flowed based on how consumer investors felt about the crypto’s future. In recent months especially, however, major players in tech and financial sectors have either plunked money into Bitcoin or adopted the currency on their platforms.

Companies like MicroStrategy, Square and Tesla have invested huge chunks of capital in Bitcoin, while both traditional (Visa, MasterCard) and modern (PayPal) financial institutions are starting to integrate crypto as a feasible form of currency. The more Bitcoin becomes mainstream, the more legitimate it becomes as a long-term investment.

This post originally appeared on the eToro blog.


eToro USA LLC
This is not investment advice; investments are subject to market risk, including the possible loss of principal.

This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.




Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Featured Image: Shutterstock/chaoss

Submit a Press Release

Crypto Livewire – Press Releases

  • First Charity Project Using NFT: All Profits From Sales of Content Produced by Miss Bitcoin To Be Donated
    April 15, 2021
  • MakiSwap Raises $1.4M From Leading Investors to Build AMM Platform on Huobi Eco Chain
    April 14, 2021
  • DigitalBits To Become Premier Choice for NFTs After Litemint Partnership
    April 13, 2021
  • Ethernity Chain Launches Authenticated NFT Marketplace to Curtail Fraud
    April 13, 2021
  • ConsenSys-Backed Virtue Poker Raises $5 Million Strategic Round
    April 12, 2021
  • Cometh Partners With Alchemix for “Wizards” Collection of Yield-Generating NFTs
    April 9, 2021
  • eToro Appoints Dr. Hedva Ber, Israel’s Former Banking Supervisor, As Deputy CEO and Global COO
    April 8, 2021
Submit a Guest Post
ADVERTISEMENT
ADVERTISEMENT
Bitcoin
$62,315.00
$62,315.00
1.13%
Ethereum
$2,469.83
$2,469.83
0.99%
Binance Coin
$537.03
$537.03
1.48%
XRP
$1.70
$1.70
0.68%
Polkadot
$43.02
$43.02
0.09%
Cardano
$1.44
$1.44
0.42%

Spotlight

  • Major Price Manipulation Incoming for Bitcoin and Ethereum, Says Crypto Trader Austin Arnold
    April 12, 2021
  • Coin Bureau Unveils Crypto Portfolio, Top Holdings and Investing Strategy
    April 16, 2021
  • Bitcoin Pullback To $20,000 Possible, BTC in Speculative Bubble: Guggenheim CIO Scott Minerd
    April 13, 2021
  • Cardano Launching Smart Contracts in August, Targeting DeFi Boom and Corporate Use Cases
    April 10, 2021

DON’T MISS A BEAT

Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options

By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.

Check your inbox for confirmation email.

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX • Explore • Futuremash •
Crypto Livewire

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2021 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX

© 2020 The Daily Hodl

×