Bitcoin, introduced in 2009 by an undisclosed programmer(s), stands as a decentralized, peer-to-peer digital money system, revolutionizing online transactions through the use of Bitcoins. In essence, it represents a digital currency challenging traditional forms such as the US dollar, Euros, and precious metals like gold and silver.
Rise to Prominence
Before 2009, Bitcoin had limited attention in the realms of business and finance. Its breakthrough came in the 2011-2012 period, witnessing a remarkable surge of over 300%. Since then, Bitcoin’s value has experienced a staggering 400% growth since August of the previous year, capturing the interest of venture capital firms and global investors.
In the first half of 2014, venture capital investments in Bitcoin saw a substantial increase, reaching $130 million. This marked a 50% growth compared to the previous year’s total of $88 million. A stark contrast to 2012, where Bitcoin companies managed to accumulate a modest sum of $2.2 million.
These statistics undeniably highlight Bitcoin’s appeal as an investment. The question then arises: how can one invest and acquire Bitcoin?
Coinbase: Your Gateway to Bitcoin in the U.S.
For residents in the U.S., Coinbase emerges as the go-to platform. Coinbase provides its customers with BTC at a nominal markup of 1% over the current market value. U.S. residents can seamlessly sync their Coinbase accounts with their bank accounts, ensuring convenient future payment transfers. Additionally, Coinbase offers an option for automated bitcoin purchases at regular intervals. For instance, setting up an auto-purchase of $50 in bitcoins at the beginning of each month is feasible through Coinbase.
However, it’s crucial to understand the terms before utilizing this service. Opting for an automated bitcoin service means relinquishing control over the purchase price each month. It’s worth noting that Coinbase operates differently from a traditional Bitcoin exchange, as users buy and sell coins directly from the company. Given that the company sources coins from other buyers, there might be potential delays or interruptions during fast market movements.
Investing in Bitcoin through platforms like Coinbase provides a convenient and accessible entry point into the world of digital currencies, paving the way for a new era in financial transactions.