Investing in bitcoin (BTC)
You probably came to this page because you are researching bitcoin, ethereum, ripple or another cryptocurrency and want to know if it is interesting to invest in bitcoin. You've come to the right place. The purpose of this page is to tell you why we think bitcoin is a smart investment, how to get started and what to look for to get a flawless start. Spoiler alert: it's all a lot easier than you think!
What makes Bitcoin such an interesting investment?
Good question! People usually expect a very technical story when explaining bitcoin, but nothing could be further from the truth. To understand why bitcoin can be a valuable and good investment, you don't need to know exactly how bitcoin works under the hood. Just like when you drive your car you don't need to know exactly how the duty vehicle works under the hood.
The economic story of bitcoin is mainly a story about saving. We all save for later, but we actually do that automatically in euros. While there are also alternatives to save, including bitcoin. We even think that bitcoin is currently the most interesting savings technology in the world and we don't see that changing any time soon.
After all, the most important thing about a savings is that it can retain its value over a long period of time. In principle, it does not matter that the price of the savings fluctuates slightly from day to day. After all, you only need it in 10 years or maybe even later in your life. But why is bitcoin such an interesting currency to save? What makes bitcoin so special is that the currency is set up in such a way that it is impossible that more than 21 million bitcoin will ever come into circulation. The creator of bitcoin has written this down in the code and the users of bitcoin have in fact accepted this by buying bitcoin and running the software. It is going too far for this article to explain why no one can just cause more than 21 million bitcoin to come into circulation, but let's assume for now that the system is so ingenious that it really is. Bitcoin has thus become the first good that you can invest in, of which we know that there is a maximum amount. The only investment object in the world with a verifiable finite inventory. For the same reason, gold is worth a lot, with the difference that we don't really know how much gold has been conjured above the ground and how much is still hidden in the ground. The number of bitcoin is fixed and can be checked by anyone at any time. In addition, you can safely send your bitcoin to the other side of the world for € 0.50 in transaction costs within 10 minutes. Try that with gold.
Choosing Bitcoin over Euro
But why would you choose bitcoin over the euro as your savings? Actually that is very simple. The euro can be printed indefinitely by the European Central Bank and commercial banks throughout Europe. This is not done literally by printing new euro coins and banknotes, but mainly by changing a few numbers in a database. Many billions have been pumped into the economy in the corona crisis alone to drive consumption and investment. The euro is a currency that is completely under the control of a small group of people. In fact, they can determine what happens to the euro and how many euros are put into circulation. At this time, billions and billions of new euros are added and that is not good for the value of all other euros and therefore also your savings.
In fact, this can be reduced to the following question: suppose you are given the opportunity to receive your salary in a currency that can be printed indefinitely by the ruling power, or in a coin that cannot be printed by anything and no one. Which currency would you choose? Probably the latter. The great thing is that we really have that choice now. After all, Bitcoin really exists and cannot be printed by anyone or anything. You know for sure how much bitcoin there are now and how many more will come in the coming years. Unfortunately, we cannot say that about the euro. That is precisely why bitcoin is so important and works so well as a savings. Now, of course, you do not immediately have to convert all your savings into bitcoin, you should all know that for yourself, but it does not hurt at all to invest a small part of your assets in the promising digital currency.
We dare to say that you are still very early. Bitcoin has only existed for a little over 10 years and the total market value of all bitcoin is currently still nothing compared to gold, for example. All bitcoin added together is worth about € 150 billion at the time of writing, while all the gold in the world is worth about 60x that. When you consider that bitcoin is the digital and improved version of gold, it almost feels strange that there is such a huge difference in value between the two savings technologies. Which in our view only emphasizes the growth potential of bitcoin. There is still so much ground to be gained for bitcoin. And the nice thing is that you can already buy bitcoin from the meager amount of € 50 per transaction. In that sense you can start with it.
How do you start with Bitcoin?
But then of course comes the question… how do I start with bitcoin? Fortunately, we have had that question countless times and we can reassure you that it has become super easy over the years to start with bitcoin. Where you needed quite a bit of technical knowledge in the early years of bitcoin to buy and store the digital currency as bitcoin, it is now a piece of cake. All you need to securely store your first bit of bitcoin is a computer or a mobile phone.
The first step is to download a Bitcoin wallet application on your computer or mobile phone and you are ready to go! Are you unable to open the wallet application or are you having trouble understanding how it works? Then we would like to refer you to the bitcoin wallet page, where we explain in peace how your new digital wallet works. Are you investing in another cryptocurrency? We also have pages explaining ethereum wallets, ripple wallets, litecoin wallets and bitcoin cash wallets. Fortunately, this is also very simple and you can get started with bitcoin in a few minutes. In the wallet you can find your bitcoin receiving address - usually under the button receive in your wallet - with which you can place an order with SATOS. Your receiving address is, as it were, your bank account number that we need to transfer the bitcoin to you. You can always share this address with anyone to receive bitcoin. If you have successfully downloaded the wallet and you know your way around the application, you can simply buy bitcoin with iDEAL, easy as that.
Are there any things I should keep in mind when buying my first bitcoin?
Certainly! When you start your wallet application for the first time, you will see a word sequence of 12 or 24 words. It is extremely important to copy this series and keep it in a safe place. With this phrase you can always retrieve your bitcoin, in that sense it is your ultimate bitcoin password. For example, if your phone loses due to theft or for any other reason, you can use this phrase to restore your bitcoin wallet to another device.
It is therefore important not to share this word string with anyone in its entirety. Always store bitcoin in a safe place in your own home, garden or other place where you could always go and preferably in two separate parts. So that someone who would accidentally find part of your word string is still of little use. In addition, it is useful to give two people you fully trust both part of the phrase so that you can knock on their door if you have lost them, but also so that they can restore your bitcoin at any time should you for some reason therefore no longer be. Not fun to think about, but important.
This is the basis to start with bitcoin. If you have arranged this, you can proudly call yourself a real bitcoiner and you can save part of your assets in the most scarce good in the world. How cool is that? Of course it is important to realize that the bitcoin price can go up and down and that you should never put more into bitcoin than you are willing to lose. Don't be fooled, never act out of emotion and always try to make a plan. After all, it is about money, it is not a toy.
Now that you have a good basis to get started as a bitcoiner, it is nice to look further up and read other articles in our knowledge base.