How Can You Get Bitcoin? 

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency ecosystems. 

How Can You Get Bitcoin? 

There are a number of ways you can get Bitcoin. First, you can buy it with money or fiat money from a cryptocurrency exchange. These exchanges will exchange your fiat for certain types of cryptocurrencies, such as Bitcoin. Popular crypto exchanges include BlockFi, Gemini, and CoinBase. 

Second, you can sell an item or service and receive Bitcoin in return. For example, a number of major companies have announced that they will now accept cryptocurrencies as a form of payment. Companies now accepting payment in Bitcoin include Tesla, AT&T, and Microsoft. 

Third, you can create new Bitcoins by mining for new coins. As noted previously, the Bitcoin network establishes a global competition among bitcoin miners who are racing against each other to mine these new coins. Successful miners earn financial rewards in the form of newly minted Bitcoins. 

Why Do People Use Bitcoin? 

Some people like Bitcoin because it represents a decentralized transaction where all transactions occur between two entities. There is no third party like a bank or a credit card company that is required to validate a transaction. There is, therefore, no third-party fee to complete this transaction. 

Personal information is not traceable for blockchain transactions. Someone viewing the blockchain can identify that a specific transaction occurred and the amount that was transferred between memory locations. However, the identity of the person or persons involved in a transaction is not identifiable. Therefore, there is no potential risk of identity theft. 

Bitcoin is now a global currency. The value of one Bitcoin coin is the same no matter where you are in the world. And importantly, no government or banking institution can directly affect the value of this global currency by merely creating more of these coins. As noted earlier, there will only be a fixed amount of Bitcoin in existence: 21 million. 

Can You Use Bitcoin to Fight Inflation? 

Inflation causes fiat currencies, such as traditional currencies like USD, GBP, or EUR, to lose their value over time. For example, today US inflation is estimated at 6.2%. So, if you hold one dollar in your pocket today, one year from now that dollar will only be worth about 94 cents. 

Unlike Bitcoin, fiat currency gets its value from a central authority, most often from a government-controlled banking system. These systems can also print an unlimited amount more of the currency which tends to devalue the currency in the form of inflation. 

Crypto backers argue that, unlike these other traditional currencies, Bitcoin is designed to have a limited supply. Bitcoin, therefore, cannot be devalued by the actions of a government or by a central bank printing too much of it. 

Therefore, unlike most fiat currencies, Bitcoin can act as an anti-inflationary currency. Similar to gold, Bitcoin will not lose its value over time. That is why some people refer to Bitcoin as “digital gold.” 

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity whatsoever with which Thomas Wettermann has been, is currently, or will be affiliated. 

Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk, and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor. Thomas Wettermann is not an independent financial advisor.