The cryptocurrency Bitcoin is gaining considerable popularity in today’s markets. With online transactions becoming commonplace, more and more people are beginning to discover the appeal of using a virtual currency. With Bitcoin, transaction costs are extremely low, and since Bitcoin uses a peer-to-peer system, payments are instantaneous. Bitcoin is becoming more and more reliable and reputable.
Many people believe that digital currency is the way of the future. Any central bank or government may not back Bitcoin, but it can still be traded for traditional fiat currencies. What is often a key selling point is that bitcoins have a healthy exchange rate against the dollar. This inspires people to find out more about Bitcoin, and some are even taking steps to start their cryptocurrency journey. Many people have been successful in the past; some have become extremely wealthy after starting Bitcoin.
As with any investment, it is important that you only risk as much as you can afford to lose. Bitcoin is known for its volatility, as with many other cryptocurrencies, so you must do your research. Bitcoin continues to have a strong influence on the market and has a positive growth outlook for the immediate future.
Bitcoin is the first cryptocurrency decentralized digital money that allows you to operate privately and securely to transfer value quickly and easily. Due to these advantages, all over the world, there are more and more people using bitcoins.
What is Bitcoin?
Before proceeding, let’s review the main concepts about Bitcoin.
It is the first decentralized cryptocurrency: it works in a network between people, without intermediaries to validate transactions.
This network is protected with cryptography, so it is very difficult to breach.
Bitcoin transactions do not compromise private or personal information.
If you want to know more about how Bitcoin works, you can review our Bitcoin Guide: a trip to the crypto planet, where we explain everything about the main cryptocurrency.
For Genesis Mining CEO Marco Streng, 2020 proved to be a historic year for blockchain technology and cryptocurrencies due to the convergence of several factors, including the weakening of the US dollar and large institutions that welcome digital currencies in their platforms. The 31-year-old CEO, who co-founded Genesis Mining in 2013, has witnessed the industry’s maturity from a concept promoted by a small community of passionate coders to a recognized and increasingly credible alternative payment system.
In a special conversation with YPO’s global CEOs during a recent visit to Dubai, UAE, YPO member Streng shared his business trip and insight on recent Bitcoin market gains.
Bitcoin: recognizing the opportunity
Streng’s passion for blockchain technology and cryptocurrencies was ignited in 2011 while studying mathematics at the Ludwig-Maximilian University in Munich.
In late 2013, when Bitcoin prices rose from $ 100 to $ 1,000, Streng was well-positioned to seize the liquid market opportunity. “At first, I set up a mining device (a server to start mining bitcoins) in my dorm. My partner and I quickly recognized that we were in the middle of a gold rush and started the first full-scale installation in 2013. From there, we built more data centers in Eastern Europe and the Nordic countries. “
Today, Genesis Mining has become a leader in the cryptocurrency mining industry, with multiple cryptocurrency farms worldwide and providing a platform and the expertise for clients to run their mining operations efficiently.
A key moment
In a year marked by a global pandemic and economic crisis, the price of Bitcoin has exploded almost 150%, returning to its previous all-time highs in December 2017. For Streng, there has never been a better time in its 11-year history.
“This is the year that institutions, large corporations, and professional money have entered the space. Now Bitcoin and cryptocurrencies are not only widely accepted, but large amounts of money appreciate them,” he says, citing PayPal’s decision to allow access and integration of bitcoin and Square’s payment company Investing in bitcoin. “I never believed that we would find ourselves in a situation like this again, in another historical record, more than 10 years since its founding in 2009. It is still a very wild and interesting journey.”
Streng adds that while market volatility remains, the unique characteristics of the cryptocurrency make it “absolutely” sustainable. Blockchain, which Bitcoin’s underlying technology, is based on open-source software and is therefore available to anyone. Digital currencies are decentralized, not tied to a specific country, central bank, or currency, and independent of the financial market.
As for the concerns of the governments that shut it down, Streng says that while 10 years ago this may have been a legitimate concern, it now seems less unlikely. “We have seen that space becomes more regulated. The government’s strategy has been to try to regulate, not ban it. Many countries are also afraid to ban it as other countries could adopt it, so they risk missing the boat. “
What investors need to know
Streng offers the following insights for engaged investors looking to capitalize on the latest price resurgence in the historically volatile Bitcoin market with renewed interest in Bitcoin.
Using credible exchanges and wallets: Investors interested in buying Bitcoin can choose from many exchanges and wallets. They can get information on suitability for their own needs from many great online sources, for example, bitcoin.org, says Streng. “Bitcoin is now a very liquid global market, and there are billions of dollars in trading volumes every day. So there are easy ways to buy and sell by signing up with one of the reputable exchanges or sending it to your Bitcoin wallet. Fake on the market.
Bitcoin versus Bitcoin Mining: Streng explains that Bitcoin and Bitcoin mining are two different asset classes and have different perspectives on risk. While Bitcoin trading is comparable to speculation on For stock prices or commodity trading, the mining business has other dynamics comparable to the mining of physical gold, except that there is a fixed number of Bitcoins that are issued every day, namely 900 Bitcoins per day. . With just 21 million Bitcoin to be issued, just under 2.5 million Bitcoins remain for mining.
“In mining, you have a continuous stream of Bitcoins that are produced daily,” explains Streng. “When the price goes down, if you are one of the lowest producers, you can stay and be profitable. However, if you are not among the most efficient miners, you may be kicked out. So since you are an efficient large-scale miner, you have a protected disadvantage and a strong advantage. Therefore, it is strategically better to be on the mining side than on the side exposed to trading Bitcoin, as mining has made up for the downside. But this applies only to the most efficient and lowest-cost miner. “