Tag Archives: cypto-currency

What Is Bitcoin? How Do I Make Money From It?

What is Bitcoin?What Is Bitcoin? How Do I Make Money From It? Well, according to CNNmoney, Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. It gets even better than that. For a full understanding of this mysterious so-called cypto-currency  go to Bitcoin .org to get the full detail about Bitcoin.

Everyday more and more merchants are accepting bitcoin as payment for their services. The largest merchant online that accepts Bitcoin is Overstock.com. They are doing a really good job  integrating Bitcoin seemlesly into their business model. To date, they have surpass over $1 million US dollars in sales using Bitcoin. The first day sales were $126,000 but that has tapered down to about $20-30 thousand per day. Which is still not bad for a currency that only exist in cyber space.  Here in Las Vegas, there was some buzz about Bitcoin. A few casinos downtown actually started accepting Bitcoin as payment.  It is slowly getting accepted by the general public but it is still very volatile like the stock market. Any bit of bad news will see the value of Bitcoin plummet and vice versa.  I have seen the value go from over $500 per Bitcoin all the way down to under $400 per Bitcoin in the last two weeks. 

So, what is Bitcoin? Does it matter what it is? The question in my mind is, how can I make money from it? There is several different ways to profit from Bitcoin. The fastest one is to trade it like a stock. Buy low and sell high. Sounds easy but this method is the riskiest. Bitcoin is still very volatile. Trade at your own risk. Another method is to mine for Bitcoin. For definition of what Bitcoin mining is, go to Bitcoin Mining FAQ.

There have been a surge of people trying their hands on mining. Like the gold rush of the old west, there are companies ready to sell you the equipment to mine for this elusive currency. One of the biggest one is called Butterfly Labs. Their asic miners are flying off the shelf. There is a waiting list of several months before you will receive your miner and they are not cheap. Their lastest offering is called The Monarch, a 28 nm Bitcoin mining card running at 600 giga hash. The cost is $2196 and they only accept bank transfer or Bitcoin. I ordered one on Feb 28. and I should be getting it sometime in May, I hope. This is crazy but I had to try it for myself. If you go to Ebay, you can see people pre-selling that same card for twice the price. Maybe, I’ll try mining for a while and sell the card for a profit. I will report on my mining experience when I get my miner. I can’t wait.

A third method, the slowest one is using Bitcoin based PTC sites and Bitcoin faucets. Bitcoin PTC sites are basically the same as regular PTC sites. Get paid viewing ads. The faucets are sites that dispenses a tiny amount of Bitcoin every hour for free. There are literally hundreds of these sites out there. Too many to mention. The main one I use is called freebitcoin.in They deposit the bitcoin you earned every Sunday into your Bitcoin wallet. You can get a free wallet from Coinbase This is where you can store your Bitcoin securely. Bitvisitor is the PTC of choice because it consistently pays without question. Check it out if you like. This two site will get you a taste of Bitcoin but it won’t make you rich.

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The idea of a currency that’s just numbers and is not backed by anything in the physical world is a pretty revolutionary idea for people to wrap their heads around. So, at the end of the day if enough people believe in Bitcoin, it will gain traction and become real like Pinocchio. I wish it was that easy but real life is not a fairy tale. There is still a lot of work to be done in the Bitcoin community to make it a legitimate entity.  The idea of Bitcoin is sound and in some cases, it is more stable that some country’s currency. No printing press required. When everything is said and done, money is money because we think it has value today and we think it has value tomorrow. What is Bitcoin? Bitcoin is money because we believe in it. Thanks for reading and please like us on Facebook. If you have any insights about Bitcoin, please feel free to leave a comment.  Happy earnings! Cheech21