The most exciting and future changing technology to enter our world thus far is arguably the invention of the blockchain technology that runs Bitcoin. Bitcoin was the first cryptocurrency to use the blockchain technology and has become both a commodity (like gold) and a currency. It is therefore both a method of payment and an asset at the same time. Blockchain technology is quite complex and so I won’t be breaking this down today.

What is important for you to know is that there are three ways to get involved with bitcoin:

  1. Buy and hold Bitcoin
  2. Mine Bitcoin
  3. Trade Bitcoin

Trading Bitcoin is extremely volatile and while fortunes can be made, they can also be lost in a matter of minutes. Only the most experienced of traders should be doing this.

Buying Bitcoin is a safe bet and is the most liquid. You can do this through different exchanges and it is very easy and safe. Personally I hold some Bitcoin to be liquid but I have not spent any yet as the bearish run that it is on has been amazing.

My recommendation though, is to get involved with the mining. Mining involves buying the equipment that all the bitcoin (blockchain) runs on. Only specific pieces of highly specialised equipment can process these algorithms.

Mining means that by solving the blockchain algorithms you get paid in Bitcoin. You can get start with any amount but larger purchases of equipment give you a greater collective processing speed and therefore create more opportunity to earn the Bitcoin before someone else.

I would definitely recommend mining to anyone reading this article for this reason: If you bought 500$ worth of Bitcoin you would still only have the same portion of Bitcoin in a year’s time. It would be worth more in terms of rand or dollar amount but it would still only be that amount of Bitcoin. By mining Bitcoin your 500$ asset has the potential to create more than 500$ in Bitcoin and you would still have asset to mine more. Over a longer period, mining will trump buying and holding Bitcoin any day.

Another pro to mining is that if another cryptocurrency starts to outperform Bitcoin you can simply change the settings to mine that currency. Mining means you own and get paid for owning the equipment that the internet will run on.

 

For more information please contact me and I can help you get set up one way or the other.

 

Chett Goldin

082 686 7777

Chett@chettgoldin.com