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Let's talk about bitcoins today, shall we?
The first time I heard about Bitcoin was in 2013
I was trading Forex on a platform called @etoro and a couple of guys there talked about including cryptocurrencies as part of diversifying our forex portfolio
As I am such an over cautious trader, I went to my Forex trading encyclopaedia: @BabyPips
Now, @BabyPips has been my Day 1 guide to Forex trading.
Have a look at their website as I am not going into details about what they do in this thread
Have a look at their website as I am not going into details about what they do in this thread
Babypips discussed cryptocurrencies and provided a strategy for potential buyers to follow
Before investing, I really wanted to understand the whole crypto space, so I went to Bitcoin 101 school. 
If you understand paper money, you can understand bitcoin
So grab some popcorn and let me break it down in manageable chunks for you to understand it
At some point in history, gold was the legal tender
But countries with no gold mines were at a disadvantage because they could not trade on the international market.
Enter paper money
But countries with no gold mines were at a disadvantage because they could not trade on the international market.
Enter paper money
In the 1800s, countries without gold printed paper money to prove that the paper was backed by the gold they had stored somewhere
Later, that "somewhere" became bank.
And banks became known for giving out paper money instead of gold
And banks became known for giving out paper money instead of gold
For a long time, the value of paper money was intrinsically tied to the value of gold
But for reasons best known to them, The United States (via President Richard Nixon) decided to mess it all up by unlinking the value between the dollar and gold in 1971.
How smart…not.
How smart…not.
Then the house of cards fell…inflation escalated
Alongside the inflation, the many issues with paper money were unearthed
I would not go into them. Let’s stick to crypto shall we?
What is the Technology behind Bitcoin?
There are 21m Bitcoins in existence according to the software behind Bitcoin
Yes, I read the software because I am a geek like that.
If you have the time, read it at http://bitcoin.org
If you have the time, read it at http://bitcoin.org
This fixed supply of bitcoin is exactly what makes it seem more valuable than paper currency
The technology behind Bitcoin is a blend of cryptography, blockchain technology and data
As with gold, you mine Bitcoin…but that’s a totally different discussion for another day
Bitcoin is not the only cryptocurrency we have - just like the Pound Sterling is not the only currency that exists in the world.
There is Ethereum, Bitcoin Cash, Comodo…the list is endless
There is Ethereum, Bitcoin Cash, Comodo…the list is endless
Should you buy crypto now?
I think everyone should by some cryptocurrencies but should apply a healthy dose of common sense
Crypto is the future that is fast becoming the now
he best way to understand it is to dabble in it while reading books and websites dedicated to cryptos
Just like you will trade Forex, similar rules apply in trading cryptos
Why is Bitcoin so volatile?
Elementary, my dear Watson.
Actually, it’s basic Economics
Actually, it’s basic Economics
There is no central authority (like a Central Bank) to regulate supply and demand
