For most of us, it wasn’t that long ago in real terms that we were asking the question, Bit what? Rather than using it and even strategizing on how to profit from it. Ever since the inception of Bitcoin way back in 2009 by the mysterious individual, or individuals, Satoshi Nakamoto, it has been the subject of furious debate; is it for real, is it even legal, and will it last? Bitcoin is not regulated in the way that traditional currency is, as it is not tied to central reserve and does not have a single government legislating on it. However, the code behind the blockchain encryption has a set of rules which could be interpreted as a form of regulation. But as a cryptocurrency, the idea behind it is a financial one, and so the aim must be to make money. How to earn money using Bitcoin is a much-debated one, and here we are going to look at how to earn cash by engaging in trade.
The process of ‘mining’ for new Bitcoin is a way to make money, and it’s essential to how Bitcoin itself works. Effectively miners are verifying that Bitcoin transactions are legitimate in a time-consuming process that gives a potential reward of new Bitcoin. But the catch is that more than one miner can be working on this verification process at the same time, meaning that there is no guarantee to be rewarded by engaging in this task.
Trading (& Being Lucky)
Bitcoin can be traded, just like any traditional currency, and if you time it right with the correct amount of luck, then you can make a profit through trading. You simply find a good place for bitcoin arbitrage, then you pick a time to trade, when the prices are suitably low and buy the required amount of Bitcoin. The difficulty in trading Bitcoin, or any other cryptocurrency, is that in comparison to traditional currency, the price is significantly more volatile, and this makes it more of a guess-work endeavor.
Accepting it as Currency
There is another, more traditional way to make money using Bitcoin, which is to accept it as payment. Many businesses, particularly online, are doing this, such as these casinos. Mostly the type of companies that can thrive taking Bitcoin payments are those that appeal to the alternative or risk-taking crowd. One big issue with this is that to spend a lot of the profits, you might need to convert them to traditional currency, and the volatility in the price we mentioned earlier makes this problematic.
It’s much easier to hide your transactions if you are using Bitcoin as it’s often portrayed as being anonymous, which isn’t entirely true. Still, it’s undoubtedly less easily traceable than traditional bank transfers. This can be useful for consumers that wish for something to remain private, such as someone buying adult materials or engaging the services of a legitimate escort service. It’s essential to make the distinction between discreet transactions and illegal ones, although some may use Bitcoin for illicit activities, we would never recommend this.