I’m no expert in Bitcoin, or any crypto currency, just a regular guy with a bit of background knowledge. I’m starting to experiment with Bitcoin partly to diversify my investments, but mostly out of curiosity – I am a geek and this sort of thing interests me! I thought I’d blog about my Bitcoin journey in case anyone else is looking into it, but also to serve as a notebook for myself.
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
In the UK we have already started to change how we use money, even five years ago the major banks had a monopoly, but now fintech startups and even the big players such as Apple/Google are trying to replace the old banks. I was an early adopter of Apple Pay, registering and using iron the first day it was available in the UK. Bitcoin is certainly a part of the changing landscape for our money – I especially like that it is decentralised and not run by a company whose main motivation is do get more data about us. I spend a lot of time online, both for work and leisure, and Bitcoin has been in my peripheral vision for years – I’m not going to think about how lucrative it could have been to have bought some Bitcoin when I first heard about it! The value has already doubled since I put “Research Bitcoin” into my todo list three months ago! I am not interested in learning about the mining side of things, it seems like I have already missed the boat on that. Mining now seems to be the domain of large “mining pools”, plus my old iMac doesn’t need anything else to slow it down!
Whilst I’m certainly no financial expert, I have researched stocks/shares/funds etc and how to invest in them efficiently over the last few years, both for myself and for my young son Owen. I came to the conclusion that I prefer to take a hands off approach to investing, and that fees can eat into your profits so need to be minimised. Obviously the biggest risk is that the value of your investment can go down, as well as up. I got caught out by investing just before a big dip, but stuck it out, investing more when the prices were low and did OK when things bounced back. I’m going to take a similar approach to Bitcoin, finding a balance between returns, effort and fees, and to start with – not investing more than I can afford to lose!
This is going to be a series of posts, documenting what you need to get started with Bitcoin, how to get Bitcoins and hopefully how I become filthy rich – if only it was that easy!