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Did you know that investing in Bitcoin and Ethereum could make you a millionaire? You didn’t put any blood, sweat, and tears to earn them nor did you receive an inheritance from an unknown family member. You’ve just made a small investment that ballooned into a fortune over time. That’s what happened to a man from Oslo. Back in 2009, Christopher Koch learned about Bitcoin while working on a thesis paper about encryption. Koch quickly forgot about the investment until four years later when Bitcoin started popping up in the news. Unfortunately, not all of us are as lucky as Koch.
But, that doesn’t mean you can’t possibly become a millionaire by investing in virtual currency. You just need to understand how they work so that you can maximize your profits. This comprehensive guide will teach you everything you need to know about why you should invest in Bitcoin, Ethereum, and other altcoins and how to do it. I will be direct and let you know that I am not a financial advisor and invest in cryptocurrencies at your own risk.
Let’s dive right in, shall we? Why Bitcoin, Ethereum, and Cryptocurrencies Could Make You a Millionaire? A lot of people scoff at the idea of virtual currency when they first read about it. It almost seems too good to be true.
However, after reading more about how it works, most people get sold on the idea. Since the first Bitcoin transaction recorded in 2008, the cryptocurrency was proven to be one of the most secure investments one could make. 30 for a short period, Bitcoin continues to exceed all expectations. Let’s look at the numbers to understand the hype around it better. So, it should come as no surprise that Bitcoin is the world’s most high-profile digital currency right now.
The first mention of this cryptocurrency appeared in 2013 when Vitalik Buterin, a Russian programmer, described the technical details and rationale for Ethereum protocols in a white paper. The currency was launched in 2015, and although it’s less than two years on the market, it has already become Bitcoin’s top rival. So, the future sounds bright for those who decide to invest in Ethereum. In fact, both virtual currencies seem to have a lot potential. But to better understand how much potential we’re talking about, let’s find out more about how they work. Bitcoin is the first global, decentralized currency that allows you to send money from one person to another without involving a third party broker, such as a bank. You only need your computer to make transactions because Bitcoin is fundamentally software.
As a decentralized currency, Bitcoin isn’t controlled by anyone. It’s open so that anyone can benefit from it. You might think that the lack of control could mean chaos, but that’s not true at all. That’s because Blockchain, the technology behind Bitcoin is one of the most accurate and secure systems ever created. A blockchain is a ledger that keeps records of digital transactions. Instead of having a central administrator, like a bank or the government, blockchain organizes data in batches called blocks. These data batches use cryptographic validation to link themselves together.
Blockchain solves two of the most challenging problems of digital transactions: controlling the information and avoiding duplication. When a purchase is carried out, the ledger records it and sends it out to the entire network. The validated block is timestamped and added to a chain in chronological order. The entire chain is continually updated so that it’s always an accurate representation of who owns what at any given time. You can send it to anyone across the world with no condition. The only information required is the bitcoin address and the amount you’re sending. So, when you make a payment, you don’t risk having your identity stolen since the system doesn’t send any sensitive information to the network.
So, due to this transparency, operations can’t be manipulated. Smart contracts are computer codes that can facilitate the exchange of money, property, content, or anything of value. Because these computer programs are made up of code that runs on a blockchain network, they aren’t controlled by a central entity. Think of Ethereum as the world’s first decentralized virtual supercomputer.