Do you want to know how to invest in Bitcoin? Well, before beating around the bush and delving deeper into what bitcoin is, did you know Jackson, Tennessee is the first US city to pay employees in Bitcoin?
The report claims that, for a long time, Scott Conger, the city mayor, has been greatly emphasizing on the inclusion of Bitcon as a “payroll conversion option” for the city’s employees; and now is the time to put it into action.
Moreover, Conger has no doubts over the conversion option as it will spread out the payment mode for the city’s employees. It will also offer the city the opportunity to pay companies and contractors in Bitcoin for grabbing the eyeballs of more customers or bidders.
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Jackson City Open Up Request for RPF Proposal
The release of RFP (Reques for Proposal) will allow third-party platforms to be the cryptocurrency converter of the city. And accordingly, it will be the first step towards the addition of Bitcoin as the payment conversion alternative for the city’s employees.
He further added, “The RFP is open!” the elated mayor said in an address. “The 22nd (December) is when the respondents have to respond to the RFP. So once the 22nd hits, we’ll open the bids, have the committee, and then they’ll review it. They’ll probably make a recommendation to the council in February.”
After the contractors are approved, the city will then pay them in U.S Dollars for those employees who wish to get paid in Bitcoin; as there’s no compulsion!
In addition to this, the company will convert that payment and send the converted Bitcoin payment to the interested employees. And if all goes well, then employees will start getting Bitcoin payments from next year.
Miami in Full Swing
Besides the Jackson Tennesse city, Miami is the only other city that is taking into account the concept of Bitcoin as the payroll conversion option.
Conger believes though Miami is in more desirable position, still according to him, Jackson City could be the first one in the United States to implement this move.
Noticeably, in the last few weeks or so, it’s the first positive announcement regarding Bitcoin. Also, nearly all the recent events have been conflicting to the asset. It absolutely comes as little or no surprise that already the market is already showing a downturn.
For example, the Bank of England recently released warnings that indicate that the asset is meaningless and unprofitable despite inflation. Also, it indeed is a big relief for Bitcoin fans and investors to discover that some people in government are showing support to the asset. They are even looking forward to seeing this adoption rise up.
Now, knuckling it down to bitcoin, let us understand, what is Bitcoin? Bitcoin is a type of cryptocurrency that got its start around 2008 by a guy named Satoshi Nakamoto. Bitcoin is decentralized, meaning that it is free of government regulations, and it doesn’t need the use of a bank. Instead, Bitcoin utilizes what’s called a blockchain using an associated address to send and receive payments.
These transactions are recorded in the blockchain and pass through a shared ledger for peer review. As a result, no one person can control bitcoin, and everyone has a part in looking for invalid transactions. This process helps for safer, faster transactions and is a perfect way to help keep money secure without government eyes watching over your spending.
How Does Bitcoin Work?
Bitcoin is an entirely digital currency that uses the currency code BTC and XBT for identification. Anyone can own and create bitcoin. It’s made through a process known as mining, and miners create it by using their computers to process highly complicated algorithms regarding transactions to generate a block for the blockchain. In addition, miners are responsible for making sure they are not duplicated in a public node. This helps verify the transaction information and helps make the payment network more secure.
It’s estimated that by the year 2140, the number of bitcoins will cease to be created, thus lowering the value and creating a doorway for investors to earn big bitcoin bucks. Until then, it is possible to earn bitcoin in various other ways.
How to Get Bitcoin?
The best way to create new bitcoins is to mine using specialized mining appliances specially designed for the job. The downside to this is that the device is only used for mining and nothing else. It can reach a pretty high price between hundreds and ten thousand dollars.
Is there a better way to make bitcoin? The answer is yes! Purchasing bitcoin is the fastest way to get it, and there are two ways of doing this. First, you’ll need a business that can accept bitcoins as a currency. The number of companies that accept cryptocurrencies keeps rising as more and more people switch to using bitcoins.
The second option is to purchase bitcoins directly from a bitcoin exchange like Coinbase, which acts like a traditional stock exchange. This digital marketplace is specifically designed to buy and sell bitcoins. It serves as the intermediary between makers and takers, much like how a bank works.
Peer-to-Peer Platforms like LocalBitcoins are another way to exchange bitcoins anonymously. This method is quicker and requires fewer fees. In addition, buyers can deposit cash into your account at a higher rate as long as you know the person you’re exchanging with.
If you want to earn bitcoins the fun way, there are options for that too. Bitcoin faucets are methods to which you make bitcoins by various methods such as playing mobile games and multiple gigs that offer to pay in bitcoins like Coinality who pay users bitcoins to write articles. Most of these methods ways are for the company to generate advertising revenue and user activity.
How Do I Buy Bitcoin or How to Invest in Bitcoin?
Before you do anything, you need to download a bitcoin wallet to earn and store any bitcoins you purchase. You can store these hot wallets via the internet or cold wallets, which are offline and therefore safer from hackers. Wallets are no different than physical wallets in that they hold bitcoin information through a set of private access keys. The only way to lose your bitcoins is by losing the keys, hackers, or a computer crash if you have a cold wallet.
Exchange methods are different for each platform, but most offer bank wires, credit or debit cards deposit methods. Ordering bitcoins to purchase is no different than at a regular stock exchange like Robinhood. There are two types of orders market and limit. A market order searches for the best price available in the system, while a limit order will buy either the exact price or lower.
Withdrawing bitcoins as spending money is no different. The third-party exchange you use should convert your bought bitcoins to fiat currency in equal value whenever you purchase bitcoins. This process works much like an airport currency exchange if you are going to a new country. If you have a bank wire, transfer account, or PayPal, your bitcoin funds are transferred as cash in the same way as any other platform. Keep in mind that there are fees attached to most of these transactions.
What’s the Value of a Bitcoin in the Process of How to Invest in Bitcoin?
The value of a bitcoin is mainly dependent on supply and demand. Other factors can contribute to the overall weight, such as availability, competing cryptocurrencies, and mining cost.
Bitcoins are exempt from traditional influences of fiat currency such as inflation or monetary policy. The speculations are there that Bitcoin will increase in value over time. The original price of bitcoin started out valuing at $0.0009 and since then skyrocketed in April of 2021 to a whopping $64,000.
While the market continues to fluctuate, many believe that by the year 2140, the bitcoin’s value will rise again. This is because the number of bitcoins allowed in the system is only 21 million. This finite supply enables the value of the bitcoin to increase during times of demand unless competition becomes a factor making it a potentially wealthy investment. We hope you get a better understanding of how to invest in bitcoin in this guide.