Open a Bitcoin Account and Join the Phenomenon
Mark Nestmann writing on bitcoin…
I’ve never been an early adopter of new technologies.
While cell phones started to become popular in the 1980s, I didn’t buy my first one until a decade later.
I didn’t see what all the fuss was about the internet. I didn’t start using it for research until the late 1990s…although I did use email for several years before that.
I was also skeptical about the bitcoin phenomenon. When Bitcoin burst onto the scene several years ago, I thought it would soon be forgotten. My belief was that any digital currency that could replace those issued by central banks would need to be backed by gold.
Obviously, I was mistaken. Bitcoin has rapidly gained acceptance as a medium of exchange because it offers low to non-existent transaction costs and, with the proper implementation, virtual anonymity. It’s also become quite the hot investment.
If you had purchased $100 of bitcoin when it was worth $10, your investment would be worth more than $27,000 today.
Of course, it hasn’t been a straight trajectory. In 2013 when the value of bitcoin rose to about $1,100, the price only stayed above $1,000 for 10 days. Prices stumbled in 2014, were mostly flat in 2015, and didn’t recover to the 2013 peak until 2016. In fact, bitcoin lost 75% of its value from its peak in 2013 to its low in late 2014.
But in 2017, bitcoin has made enormous gains. Since the start of the year, it has gained a stunning 141%. And that includes some significant downturns, including a heart-stopping 25% decline in a single day in May. Since then, bitcoin has recovered about half the ground it lost, although it’s still down 12% from its peak.
In an era when opening a bank account requires running the gauntlet of due diligence procedures, it’s refreshingly easy to open a bitcoin account. When I set up my first bitcoin account, the whole process took about 15 minutes.
Because bitcoin transactions are peer-to-peer (between individual users – not through a central authority), they’re far more private than transactions through a bank. The transactions are functionally anonymous. And because of the blockchain, the details are traceable, but the identities of the persons involved are not.
Edtor’s note: Mark Nestmann is an expert in wealth protection at Nestmann.com.
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