One of the most significant economic revolutions in years, cryptocurrencies have taken the world by storm. So many of them claim to offer so much and yet for all the smoke and mirrors, bitcoin has thus far emerged as the company with the most traction and brand-name recognition.
But what exactly is bitcoin and what are the risks and benefits of the system?
If you are looking to buy bitcoin in Melbourne, this guide can help you get started.
An Overview of Bitcoin
For those new to the game, bitcoin is a cryptocurrency, which means that it uses data and bypasses banks entirely in order to transfer and use money for transactions. It is supported by blockchain, which essentially allows those operating the system to keep a decentralised system of records around the world. With a bank, there’s a central location that can be hacked. With bitcoin, there’s a system around the world that can check and recheck their systems.
It’s practically impossible right now to hack all systems, giving blockchain data storage a potential edge in that regard.
The Advantages of Buying Bitcoin
There are several advantages to the no-bank system embraced by bitcoin, not the least of which being that it can make money transfers faster. While you can still transfer money pretty quickly with things such as PayPal, transfers can still take a few days when banks get involved. Bitcoin, by contrast, can get the job done nearly instantaneously.
What’s more, because it is decentralised and globalised, it’s a currency that you can use around the world — at least, in places where it is accepted.
You can buy bitcoin here in Melbourne from a trusted seller and use it from Manchester to Manhattan to Mumbai.
Strip away the slowness and fees that are associated with banks and it isn’t hard to see bitcoin’s big appeal today.
The Risk/Benefit Factor
Bitcoin is, at its heart, an investment. As the common saying with investments go, however, you should never invest more than you are willing or are able to safely lose. This doesn’t mean that you will lose money with bitcoin or even necessarily that the risk is demonstrably worse than with other currencies. Investors in foreign markets such as Greece have been burned over the past few years. That being said, you still want to be careful and be sure to evaluate every transaction you undertake by evaluating the risk/benefit factor of every move you make.
Steering clear of risky investments doesn’t make you afraid to invest; it just frees you up to invest more safely and smartly, be it with other bitcoin outlets or in other economic enterprises.
With all of this in mind, you’ll be well set to make your Melbourne-based experience with bitcoin a positive one.
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