Gold & Bitcoin
If you haven’t yet heard of cryptocurrencies like bitcoin or only know a little about them, you aren’t alone. Few people know what these new currencies are all about and the massive change they will create. The main benefit of cryptocurrencies is that they allow for the transmission of money at any point in time to individuals across the globe in real-time, without restrictions. Cryptocurrencies do not involve banks, fees, delays or legal hurdles. There is no need to go through a “middle man” of any sort. Cryptocurrencies are as private as it gets as the transfer is made through one’s smartphone or PC.
Cryptocurrencies like Bitcoin have experienced an incredible increase in values in the past 10 years, making them worthwhile to study as new forms of currency. A single Bitcoin was priced at a US$1c per coin back in 2010. Today, it is worth around US$3,000 per coin. A Bitcoin is best defined as a highly unique mathematical number used in the form of a coin. Each coin is a distinct number generated by a computer. A finite number of these coins can be created as there is an inherent mathematical limitation to qualifying numbers. Just like physical gold, limited supply plays a major part in the value of bitcoins. Bitcoins are bought and sold as “parts” of a coin. As an example, 0.1 bitcoin is worth around USD$300 right now.
Bitcoin is the most popular cryptocurrency yet there are some others of note. Another cryptocurrency that is quickly gaining mainstream appeal is Ethereum. It was priced at US$1 at the start of 2016 and is now worth more than US$340. It is time to take Bitcoin and Ethereum seriously. These cryptocurrencies keep climbing in usefulness and value as time progresses. Some are buying these cryptocurrencies as investments. Others are using them for transactions. Buying a moderate amount of bitcoin and other cryptocurrencies might prove to be a prudent investment in the short-term as well as the long term. The purchase of cryptocurrencies also supports the growth of this new means of transferring and storing value.
Where to View Cryptocurrency Prices
Cryptocurrency prices are quite dynamic. Their prices rise and fall just like other currencies, stocks and commodities. View https://www.coingecko.com/en/price_charts/bitcoin/nzd to get the latest information on bitcoin prices, market cap, trading volume and additional information. Updated Ethereum prices can be found at https://www.coingecko.com/en/price_charts/Ethereum/nzd.
The price and graphic trends of the cryptocurrency known as “Dash” can be found at https://www.coingecko.com/en/price_charts/dash/nzd. Dash is one of Bitcoin’s top competitors. Many claim it is easier to use than alternative cryptocurrencies. Dash allows for transactions to be completed in a near-instantaneous manner. Prospective buyers can also stay up to date on cryptocurrency information feeds at sites like https://www.cryptocompare.com/ and https://cointelegraph.com/.
Buying Bitcoin & Ethereum
If you are interested in buying Bitcoin and Ethereum, look no further than MyGold. Our innovative team can facilitate Bitcoin transactions. Navigating these currencies may seem a bit confusing at first yet they are here to stay and they just might make you a bundle of money. Contact us today to learn more about our cryptocurrency services.
Move to a Wallet
It is advisable to move your cryptocurrency to a “wallet” to keep it as secure as possible. These wallets have robust security that allows for safe and easy storage, transmission and receiving of cryptocurrencies. Popular exchanges for cryptocurrencies are not as secure as wallets as such exchanges are convenient targets for hackers. Make use of numerous wallets to store your cryptocurrencies to diversify risk. There are plenty of wallets available. Examples for Bitcoin include the uber-safe Trezor and GreenAddress. Those who use Dash tend to favour wallets like Exodus.
The word “blockchain” is often associated with Bitcoins. It sounds complicated however the concept is actually quite simple. Think of the blockchain as a database that logs transaction processions. Blockchain is fully automated and operates independent of a central authority. It can’t be destroyed or altered by anyone as secure encryption prevents interference. The benefit of the blockchain is that it permits transactions to be conducted without interference from intermediaries like banks, allowing for deals to be processed without fees or delays.
It is best to think of Bitcoins as a type of money used for transactions between web users in a near-instantaneous manner. Each Bitcoin is a unique number. A bitcoin is currently more valuable than an ounce of gold. It takes computers hundreds of hours to generate a single bitcoin. This processing is referred to as “mining”.
Ethereum “lives” in the blockchain along with Bitcoin. However, with more programming functionality, Ethereum allows for smart contracts (applications that run exactly as programmed, without downtime, censorship, fraud or third-party interference). Being a decentralised platform to run these smart contracts on the blockchain allows developers a world of new possibilities. This includes market creation, storing registries of debts or promises, moving funds according to instructions given in the past and many other things yet to be invented, all without the middle man or counterparty risk.
Dash is fairly new to the cryptocurrency scene. Established in 2014, it has quickly become the third most financed cryptocurrency in existence. Dash transactions occur without delay while other currencies can take upwards of half an hour for authentication and execution. The dash system includes 10 percent of fees generated in transactions to pay its employees as well as miners who devote their computers’ processing power to create coins. This process is referred to as “mining”.
The Future of Bitcoin
Gold and silver have had a strong start to the second quarter of 2017. These time-tested precious metals are just about as reliable as it gets when it comes to investing. Some believe bitcoin is a digital version of precious metals like gold and silver. Yet there is no guarantee bitcoin will continue its meteoric rise even if gold and silver continue to increase in value. There is no doubt bitcoin and the blockchain are remarkable innovations in currency and technology, respectively. Some even argue bitcoin is superior to traditional currencies. One thing is for sure: more people are questioning what constitutes currency in this digital age. The question as to what currency really is has driven many to the safe havens of physical gold, silver and other metals. Others have turned to Bitcoin and similar cryptocurrencies. Perhaps it is prudent to invest in bitcoin as well as gold, silver and other precious metals.
Fast forward a couple decades and Bitcoin might prove to be gold version 2.0. It is highly likely that these cryptocurrencies will stand the test of time and still be used as a form of currency in the years, decades and possibly even centuries to come. However, there is no guarantee that Bitcoin and other cryptocurrencies will continue to rise in value in the short-term or long-term. There is a chance that bitcoin investors who bought the cryptocurrency in the initial years when it first became available may lose a large portion of their earnings. After all, Bitcoins have soared in value across the past half-decade or so. It is certainly possible that Bitcoin prices will fluctuate and possibly stagnate across the ensuing months and years. There is also an argument to be made that bitcoins, like gold, are a solid investment for the long haul. The massive amount of buzz over this new form of currency is hard to ignore. Its inherently limited quantity combined with its idiosyncratic qualities certainly make it quite appealing to investors across the globe.
Buying Gold & Bitcoin in New Zealand
MyGold is proud to support the buying and selling of gold in Bitcoin. Now that you understand the basics of Bitcoin, you are likely pondering whether you should purchase this cryptocurrency. MyGold is here to help you every step of the way. Bitcoin can now be used for gold transactions. You can acquire Bitcoins from exchanges or by way of others in marketplaces. A wide array of exchanges exist yet the value of Bitcoins is standardised across the board, regardless of the platform on which it is traded. If you decide to purchase Bitcoins, there are many payment options. You can pay for Bitcoins with anything from cash to a debit card, a credit card, a wire transfer and even with other cryptocurrencies. Payment method availability partially hinges on your location. Store your bitcoins in one of the online digital wallets outlined above and you will be ready to roll. Reach out to MyGold today to learn more about using Bitcoin to buy and sell gold in New Zealand.
- If you bought $100 of bitcoin 7 years ago, you’d be sitting on $75 million now
- Bitcoin like Gold is money – a unit of exchange and a store of value
- Bitcoins are a deflationary asset because supply is limited to 21 million bitcoins
- Bitcoin can be described as a “Peer-to-Peer Electronic Cash System”
- Bitcoin has no central controlling party as it is based on a distributed ledger or “blockchain”
- Bitcoin mining is similar to mining for real gold, but only digital