Bitcoin 101: Becoming a Bitcoin billionaire
Posted on March 30 2015
Like most things in life that are worth something, it does not come without a lot of time, patience, hard work and learning. Bitcoin is not the simplest concept for the common man to grasp, but the community have introduced millions of people to a currency, which has made millions rich and stands to make more people rich.
Mining is dead
Think of mining for bitcoin as a similar process to mining for gold or other precious metals, except your computer does the work.
Mining is basically your computer solving complex mathematical problems, when the problem is solved you are rewarded bitcoin. This is how early adopters managed to accumulate so many coins.
Unfortunately over time the mathematical problems become harder and harder, it's now at the point where the energy spent on solving the problems will cost you more than you will be rewarded in bitcoin. So this is no longer an option if you're looking to get rich quick.
Buy bitcoin, sell dollars
Again, you probably can't get away with this anymore but two years ago, with bitcoin being quite volatile in price and higher adoption across the U.S, the trade price was different in GBP to USD. This allowed for people to buy bitcoins for cheaper in GBP, sell them in USD and exchange the dollars back to pound.
Widespread adoption and large bitcoin exchanges have led to confidence in the currency. There is still scope to do this across some currencies if you have a decent capital investment with immediate buyers and sellers lined up.
Sell goods, accept bitcoin
If you're an online retailer and you're not taking bitcoin, you're missing a trick.
Even if you're not confident in the currency, you can accept bitcoin payments through providers like bitpay, they will immediately exchange the currency for the market price of your native currency. This is designed to limit risk to retailers. So you accept bitcoin and get paid in pounds (for example, it could be USD or EUR).
Alternatively, you could just accept bitcoin and watch your wallet grow. Having a little bitcoin at your disposal is a great way to learn more about the currency, what you can buy with it and how best to leverage the not-yet-reached potential of it.
Wolf of bitcoin Street
Now is the time, stock exchanges are beginning to take bitcoin seriously.
Bitcoin stock exchanges will gather tremendous traction this year. Admittedly this doesn't have a low point of entry, considering you'll need to understand the markets, trading platforms and a little economics might help too. But people are poised to make millions from investing with bitcoin this year.
Open a Bitcoin Exchange
Admittedly this is going to be beyond the reach of many people who don't have a degree in computer science and economics, but it's possible. Bitcoin exchanges make a considerable amount of money through bitcoin. They provide a platform for people to deal currency in a safe and trustworthy environment, taking a very small percentage to handle the transaction.
The largest exchanges have made the most money from any bitcoin businesses in the entire community.
Don't set up an online drugs bazaar
Dark web markets, the illegal online drugs marketplaces that exist on the dark web (the hidden part of the internet only accessible by special pieces of software such as TOR) have long since accepted bitcoin as the online payment method because of it's easy implementation and relative anonymity.
The law tend to frown upon these enterprises, although you can make millions you can also end up spending a lot of time bars like Ross Ulbricht, the prosecuted owner of the worlds largest dark web market Silk Road.