What Is Bitcoin?

“Bitcoin is a decentralised digital currency that enables instant payment to anyone, anywhere in the world online. Bitcoin uses peer-to-peer (P2P)
technology to operate with no central authority, the transaction management and money issuance are carried out collectively by the network.” (source :
Bitcoinswiki)

If you have any difficulty to understand the above statement, don’t worry.

Now, to elaborate we just compare the Bitcoins with the local currency in your country.

Assuming you are living in the USA, the local currency is US$ and it is issued by the Federal Reserve. You can use the physical US$ notes/coins; you can send and
receive this currency via your bank accounts or other regulated manners.

On the other side, Bitcoin is the first worldwide currency – it is neither controlled nor issued by any government. Any user with a e-wallet can send and receive
Bitcoins instantly all around the world without the regulatory hassles and with a lower fee. The P2P is created when 2 or more PCs/tablets/mobiles being
connected online to enable the Bitcoins transfer. The collective network that supports the function of Bitcoins is the blockchain.

In short, Bitcoin is a digital currency that can be moved and stored easily using internet.

How does Bitcoin work?

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Where did Bitcoin come from ?

 Bitcoin was invented by a person or a group of people under the pseudonym of “Satoshi Nakamoto”. Despite many investigations were done to uncover the real
identity of Satoshi Nakamoto, there is still no clue on who is /are this Satoshi Nakamoto who initiated Bitcoin.

In October 2008, Satoshi Nakamoto published a paper on The Cryptography Mailing list to describe digital currency. Few months later, Satoshi Nakamoto
released the first Bitcoin software that launched the network. Satoshi Nakamoto created a website “bitcoin.org” and continued to collaborate with other
developers on the Bitcoin software until the middle of year 2010.  All modifications to the source code were made by Satoshi Nakamoto. Around that same time,
Satoshi Nakamoto hander over control of the source code repository and network alert key to Gavin Andresen and transferred several related domains to
various prominent members of the Bitcoin community and stopped his involvement in the project. In Satoshi’s whitepaper, he made references on the works
that other people contributed on which he relied to complete his invention.

According to the genesis block, the first Bitcoin was mined on 3 Jan 2009 18:15:05GMT. Timestamps for subsequent blocks indicate that Satoshi Nakamoto did
not mine all the early blocks solely by himself. The transactions log shows that Satoshi Nakamoto’s known addresses contain about 1 million Bitcoins, other than
the test transactions, these remain unspent since Jan 2009.

Over time, many people have worked on the open source code and the program has changed from the original that Satoshi Nakamoto had started.

The value of Bitcoins

Bitcoin creation is one of the greatest inventions in our mankind history, it gives the freedom and convenience to all the human beings – just like the internet evolution
some 20+ years ago.

Bitcoin was created in 2009 as the first world decentralised digital currency.

To be fair, the digital currency is not new to all of us. In most countries, there are more digital currency in the bank accounts than the physical cash circulating in
the market place.

The unique features of Bitcoin lie with its free usage cross the world, its decentralised verification mechanism to avoid double spend plus its maximum issuance
of 21million Bitcoins eventually. 

In comparison to the currency of any country, whereby each government can issue as much money as it desires with no backing reserve and control the money
by setting all kind of rules and regulations to the users.

That’s why Bitcoin can be very valuable when it becomes part of the mainstream economy, when people are accepting Bitcoin to facilitate any trade of goods
and services.

When the usage of Bitcoin increases, it is expected to see more and more governments will step in to formalise this new financial sector in each country.
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How is the price of Bitcoin calculated?
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The Bitcoin price is determined by the demands and supplies of the global market. It is just like how any fiat foreign currency works, but without any
interference of any central bank. The other difference
Bitcoin is Bitcoin has a definite supply which is up to 21 million Bitcoins by year 2140, but for any fiat currency
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there is no limit on supply.  

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due to government new policies, technology development, adoption of blockchain in the mainstream
industries etc), for e.g.  in Sept 2017 when the China government banned the ICO and shutting down cryptocurrency exchanges in China, the whole Bitcoin and
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Is Bitcoin a bubble?
 To answer this question, firstly you must understand the ideology of peer to peer fund transfer of Bitcoins and secondly, you need to know how the blockchain
technology that stems from Bitcoin can bring disruptive impact to the mainstream industries.

If you don’t and just simply listen to others, you could end up with a wrong judgement.

Bitcoin and blockchain become increasingly popular around the world.  Initially, it started with many top tier venture capitalists and entrepreneurs came into
this new industry, then followed by many huge corporations like Microsoft, Google, JP Morgan etc started investing and creating new applications using the
blockchain technology.  We can actually see the disruptive and transformative effects of blockchain technology in our daily lives, for example the peer-to-peer
fund transfer using the blockchain & peer-to-peer lending all around the world which are threatening the traditional banking industry; luxury and medical goods
authentication to fight the counterfeits; digitization of important documents to prove the actual ownership; etc etc. The disruptive impact to the mainstream
industries could be bigger than any innovation that we have ever seen before.

Bitcoin is the mother of all cryptocurrencies, with its undeniably ingenious invention of blockchain and its market capitalisation  which is way ahead of any other
Altcoins.  (Note: Altcoins are cryptocurrencies other than Bitcoin) So, if you know how Bitcoin and blockchain work, you will probably be able to understand that
the fundamental of Bitcoin itself is a good invention and not a bubble.  

Is the current price of Bitcoin a bubble? – May be or may be not, no one knows and only time can tell.  

The future of Bitcoin will depend on the adoption by the people all around the world.  As per the current trend, this digital currency is well adopted by the 
younger generation, henceforth it would mean that the support will grow bigger and stronger down the line.

Other than Bitcoin, there are 1300+ Altcoins,  new Initial Coin Offerings (ICOs ) and new comers that are pouring in the cryptocurrency industry every day. The
fundamental of each coin, coupled with the capabilities of its management team and their ability to execute will determine whether or not any particular coin
will be successful in the years to come. Therefore, no doubt that there are bubbles in the other cryptocurrencies.

Let’s compare the cryptocurrency era with the internet innovation (the Dot Com) era, during the Dot Com bubble, there were hundreds and thousands of dot
com companies that mushroomed and burst, but you will also notice that those that survived are the giant companies in the IT industry, for e.g. Amazon, Ebay,
Priceline etc.

Am I too late for Bitcoin ?

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%of growth in BTC price _ 2017

 Ever since Bitcoins become the hot topics in the main stream media in the later part of 2017, more and more people are getting attracted to this Bitcoin industry,
however most people are still sitting in the fence and waiting for a massive price drop.

Just like any other investment, any investment market can either go up or go down or go side-way and it is just a matter of time when a major retrenchment /
adjustment will happen. Though Bitcoin has surged more than 1100% in 2017, there are dozens of retrenchments with more 30% adjustment happened during
this period. ( see graph above)

Nevertheless, when there is a major retrenchment, the normal people will avoid the blood, they can’t execute the investment and later regret for not buying at
the dip… Well, all these are human emotions!

To answer to the question, from the emotion side – if a person is really interested in Bitcoins, it would be sensible to just get started with a small sum, so that one
can start the journey and be involved in the cryptocurrency development. Later, if the major retrenchment does come, then the person will be well versed with
the market trend and know what is the right thing to do.

For the Bitcoin industry, it has just started and is still in its infancy, we can see those serious players are starting to invest into this new industry, for e.g. CME is
going to launch the futures for it, many big corporations have started using the blockchain technology to build their applications.

When you want to invest,  take Bitcoin/Altcoins as a new investment class in your overall portfolio, the necessary actions are – to research on the fundamentals
of the coins that you have selected, to set yourself a target and to execute it.

When you want to trade, it is important that you know what you are doing, know how manage the risk when calculating the potential rewards – plan your trade
and then trade the plan! The volatility of the prices in Bitcoin and Altcoins are extremely high. If you like the volatility, you will have great fun and good
opportunities to make money.

How to research for any other crytocurrency?

There are more than 900 other crypto coins in the market, if you want to invest in any of them you need to do your research:

• To check out the market capitalization, volume & liquidity of the coin, so that you can gauge how easy it is for you to buy and sell. You can go to
www.coinmarketcapital.com to get these information.
• To go to the coin’s forum to read its latest development, how active is its community and the sentimental within its community and what are the things that the
community is discussing on the coin. ( www.reddit.com or www.bitcointalk.org or twitter). If there is no community and nothing happen in the forum, you need to be
careful. You definitely don’t want to buy a coin that has no development or no future.
• To go the website of the coin to check out its management team & their track records; the project ; the road map and the whitepaper.
• Once you are happy with your research/ due diligence, you need to find out which exchange that trade this coin and sign up.

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Is Bitcoin legit?

As Bitcoin is in a relatively young industry, the legislations

Bitcoin that bind it are not very defined in general globally. The legal status of Bitcoin varies from country to country.
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When Bitcoin is getting more adoption in future, it is envisaged the governments all around the world will start to impose more rules and regulations.
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You may want to check out the legality of Bitcoin in your country from Wkipedia https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
(https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory).
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