What Is The Most Profitable Way To Make Money With Bitcoin? Even after a decade of ups and downs and the unidentified Satoshi Nakamoto, Bitcoin remains at the top of the charts. To be more accurate, Bitcoin is the largest cryptocurrency in the world. So, the response to a question such as is it still possible to make money with bitcoin is a resounding yes: Bitcoin is a viable source of revenue. Since you seem to be on solid ground at this stage, the next logical question is – What is the best way to make money with Bitcoin?, put in another way, what is the most profitable way to make money with bitcoin? There are various options, with Bitcoin mining, trading, investing, affiliate earnings, and micro earnings being the most common. However, there is no one-size-fits-all solution to making money with Bitcoin. The amount of money you earn is determined by your risk perception and the system you use. This write-up will go into seven of the most profitable ways to make money with Bitcoin.
Digital currencies are
precisely what they sound like: currencies kept and transferred electronically.
They are an internet based
medium of exchange or currency distinct from physical coins and banknotes, but
allows for borderless transfer-of-ownership and instantaneous transactions.
Real digital currencies date back to 1990s.
The first digital currency
was E-gold, created in 1996 and backed by gold.
Liberty Reserve was
another digital currency that was founded in 2006; the currency allowed users
to convert euros or dollars to Liberty Reserve Euros or Dollars, and exchange
them freely with one another at a fee of 1%.
Both services were
believed to be used for money laundering. Consequently, they were inevitably
shut down by many governments such as the USA.
Emerging in 2005, QQ coins
and Q coins were used on Tencent QQ’s messaging platform as a kind of commodity-based
digital currency.
In China, Q coins were so
effective that they were believed to have had a disrupting effect on the
Chinese Yuan.
Current interest on
cryptocurrencies has resulted to renewed curiosity in digital currencies.
Introduced in 2009, Bitcoin has become the most
widely accepted and used digital currency.
In 2016, the city of Zug in Switzerland started to accept bitcoin as a mode of payment.
As part of a Bitcoin pilot project, occupants of Zug are now allowed to pay their fees,
fines, and taxes with the digital currency.
To reduce risk, the city
instantly changes bitcoin into Swiss currency. The payments are also limited to
200 francs to lower the level of risks during the trial phase.
The project makes Zug the world’s first city to allow
bitcoin payments from people for government services and utilities.
There is a
misunderstanding around the terms “digital” and “virtual”. Mistakenly,
people often use them interchangeably.
In reality, virtual
currencies are a form of digital currency. Put simply, all virtual currencies
are digital, but the inverse is incorrect.
There are two main types
of digital currencies:
virtual currency and
cryptocurrency.
According to a study carried
out by European Central Bank in 2012, a virtual currency is “a type
unregulated, digital money, which is issued and controlled by its developers,
and accepted and used by the members of a specific virtual
community”.
In 2013, The US Department
of Treasury defined virtual currency as “a medium of exchange that functions
like a currency in some areas, but does not have all the features of real
currency”.
On the other hand,
cryptocurrency is a medium of exchange that uses cryptography to secure the
transactions and to regulate the creation of additional units of the currency.
Digital currency has several disadvantages.
Many of those currencies
have no widespread usage and banks do not offer or accept services for them.
Second, there are worries that
cryptocurrencies are very risky due to their extremely high volatility.
In addition, regulators in
some countries have warned against their use and some have taken measures to
dissuade users.
Source TechBullion
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