5 Reflections About Bitcoin

The most interesting of the talks were the questions from the audience, of which I have selected these 5.

Is Bitcoin a currency?

In recent weeks one of the central discussions of the G20 is whether Bitcoin, and cryptocurrencies in general, are currencies or values. The positions of the countries are very different.

In my opinion, Bitcoin is a currency because it has value and serves to buy products and services. In addition, it can be used as a “currency” refuge as well as the Dollar, Yen, etc.

What gives Bitcoin value?

The value of Bitcoin is governed mainly by the confidence of those who buy the Token. It can be said that the trust and solidity of the projects is the basis of the success or not of the cryptocurrencies.

Many are scared of the current value of Bitcoin, and think that the bubble burst, far we are from that. Without going any further at the beginning of last year the BTC was worth only US $ 1,000.

Can bifurcations harm Bitcoin?

First of all, it is worth clarifying that bifurcations occur when a group of people (developers, investors, enthusiasts, etc.) decides to take another path of the original blockchain.

Last year, the best-known bifurcations were Bitcoin Cash and Bitcoin Gold. There were others but they were minor.

Personally, I think the forks (Forks) strengthen it even more since none of them even looks at their quotation. This does not mean that Bitcoin should improve a lot.

What is and how arbitration works in Bitcoin?

One of the most interesting questions from the audience was about arbitration, something that is little talked about and can be profitable. Arbitrage is about buying in one Exchange at a price (lower) and selling it instantly on another Exchange at another (higher) price.

To make it simpler I will give an example … Let’s suppose that we go to a house of exchange and the dollar is worth $ 20, we buy 100 USD, so we would pay $ 2000. Then, we go to another exchange house that buys it to $ 20.50 and we sell the 100 USD, receiving in total $ 2050, that $ 50 that we won is the famous “Arbitration”.

More and more companies are engaged in this field, offering returns to investors with low risk, since they only do “Arbitration”.

What is the safest way to store Bitcoins?

Bitcoins can be stored online, through wallets such as Xapo, Coinbase, etc., or offline in a paper wallet. Personally I think that offline is the safest way, since it can not be hacked, and at all times we have control of the private key.

It is very important when you store offline that you have your own backup in case you lose the paper where you have the key. Example, you can have 3 copies in different places.

To finish I share a reflection that I am staying from one of the talks I attended:

“To invest in the stock market it is no longer necessary to wear a suit”

With the advance of technology you can invest from the comfort of your home in any financial asset anywhere in the world. And the best part is that you can do it with “comfortable clothes”.

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