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Bitcoin has been steadily gaining popularity ever since its launch. However, in recent times the attention it attracts has skyrocketed with investments coming in left and right. The ownership of bitcoin has become a status symbol and something to boast about. Owning bitcoin is seen as a point of pride since it is extremely difficult to acquire. More and more people are gaining interest in the phenomenon of cryptocurrency and the ways by which they can acquire it. Essentially there are two ways to acquire bitcoin and they are highlighted and explained below.
How to Obtain Bitcoin
Bitcoin can either be purchased from another owner, from an online exchange platform, such as Australia’s bitcoin exchange – CoinSpot.com.au or it can be mined. Due to the enormous amount of people trying to get their hands on it, bitcoin mining has become more complex, less secure, and overall a harder task to accomplish. Upon its launch, bitcoin could be mined by any computer with good hard drives. In the modern-day, due to the insane competition over acquiring digital currency, only large supercomputers can efficiently mine bitcoin. Companies that mine bitcoin usually have whole warehouses full of large and advanced computers that mine it all day and all night. It is understandable why mining bitcoin on your own has become an extremely pricey task in itself.
An advantage of mining is that you do not need to purchase it from anyone and can become a seller which means other people will buy it from you. Bitcoin is given as a reward for solving complex hashing puzzles or for completing blocks of verified transactions that are added to the blockchain. It is to be noted that only one person can solve a puzzle so you have to be extremely quick at it or else someone else will get that reward.
By now it must be clear that bitcoin mining is not for everyone. Only people with the right equipment and the right skill and knowledge can do it. Due to this, bitcoin miners are often hired by people who have the means to invest in equipment but cannot do it themselves. Bitcoin miners have an extremely important job as they are the only ones regulating the transactions and keeping the currency valid. It is a well-respected job among the owners of bitcoin. Since bitcoin is decentralized, no government or authority can regulate or validate the transactions. Bitcoin was precisely designed this way so users will have no choice but to stay honest and they can not double spend it.
What is Double Spending?
Double spending is a common problem that comes with digital currency. It is the illicit spending of the same coin twice. With physical currency, you can use a bill and it will no longer be in your hands and hence, the same bill cannot be spent twice. On the other hand, cryptocurrencies such as bitcoin can be made copies off and people can sell the copies while keeping the original. For Bitcoin, miners check every transaction and get a reward for completing a block which makes these kinds of scams impossible.
Furthermore, the amount of bitcoin you get as a miner from solving puzzles and completing blocks decreases every four years. It is precisely halved each time. With the increasing value of bitcoin, this halving is balanced out with its worth.
Some miners even form a group together called a mining pool. This allows them to combine their computing power to solve puzzles faster.
The other, much easier way to acquire bitcoin is to buy it through transactions. There are many platforms that make bitcoin transactions easy, simple, and accessible to common people. Before making any transaction, it is extremely important that you check exchange rates.
Australians Bitcoin Exchange has been growing more active since there are various Australian bitcoin platforms that are growing in popularity across the world. People value reliability and trust first and foremost while choosing a platform to host cryptocurrency transactions.
The provision of secure wallets from trusted sources is obviously very important. You should do plenty of research before choosing to trust a third party with looking over your digital wallet. Coinspot is an Australian platform that is one of the most popular choices generally for getting both hot and cold wallets.
Just like any investment scheme, bitcoins are extremely demanding in the sense that you need to have knowledge, skill, and resources in order to successfully pull it off.
Before cryptocurrency was reserved for people who regularly visited the dark web and it was seen as a controversial topic due to two reasons. It was strongly associated with the dark web and also that it was the main currency used in the black market to conduct unethical business. From buying drugs to selling human body parts, a lot of illegal transactions were enabled by the use of bitcoin. However, in recent years people have become more accepting of it and its benefits are considered as well. This also allowed the opening of bitcoin ATMs in many countries. Australia has a number of bitcoin ATMs which makes it simpler for Australians to participate in Australia’s bitcoin exchange.
Steadily, the world will advance towards switching to cryptocurrency more and more and it will be accepted and used in multiple places. Especially secure and stable currencies like bitcoin which are already trusted and recognized by some governments.
Conclusion
To conclude, there are two ways to become an owner of bitcoin, either through technical things like mining or transactions through safe third-party platforms. All in all, it is doable as long as you are willing to take the risk and spend a fortune on acquiring bitcoin.
Investing in Bitcoin sounds confusing to a lot of us since it’s a new frontier. However, once you wrap your head around the basics, you can begin trading cryptocurrency just like any regular currency or asset. And the best thing about Bitcoin is that it’s an incredibly hot asset.
