May 29, 2019 Bitcoin will never use fractional reserve banking – that means that Bitcoin money is backed by Bitcoin money only. All in all, it’s us, people, making a fuss around Bitcoin and raising its price. In 2017, the crypto community has driven hype through the roof – that’s why prices edged lower. For the sake of El Salvador’s people, let’s hope it is successful. But the odds are on it being further evidence of the cryptocurrency’s unsuitability for use as a real currency – confirmation that.

Vera Yurina

How to earn money with the help of Bitcoin and grow your cryptocurrency riches? Here are all possible options

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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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In 1999, Professor Milton Friedman, a Nobel Prize winner in economics said:

I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed is a reliable e-cash.

Nine years after that, Bitcoin was created.

Upon its appearance on the horizon, Bitcoin has turned the tables in favor of digital investment. Only a lazy trader didn’t try to make riches with crypto. Indeed, there’s a myriad of ways Bitcoin can generate income for you – both humble or grandiose. So, how exactly does Bitcoin make money? We will observe the most common ways of earning the asset.

What is Bitcoin?

Bitcoin is the first decentralized currency in the world – it means that there’s no central authority controlling it (for instance, a bank or a government). The idea behind Bitcoin was explosive: it was the first financial asset that couldn’t be harnessed by any organization or person. Besides, the Bitcoin blockchain, the fundamental technology underlying it, ensures transparency of transactions – operations are impossible to manipulate. That makes data fraud simply impossible.

Thanks to the blockchain, every transaction can be verified without a central bank involved: it is processed with the help of computing power donated by the users. They help to process transactions and generate blocks that form the ‘blockchain’ and get rewarded for that in BTC token.

Where did it come from? The cryptocurrency’s father is the mysterious Satoshi Nakamoto – up to date, no one knows who this person, or group of persons, really is. Anyway, Bitcoin and cryptocurrency itself have become a revolutionary way of making investments and performing transactions – digital money has the potential to change the global economic landscape seriously and irreversibly.

Here’s what Peter Diamandis, Founder, and Chairman of the X Prize Foundation, stated about Bitcoin:

At its core, Bitcoin is a smart currency, designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions… all good things.

Why does Bitcoin have value?

Okay, if Bitcoin is a digital currency that has appeared out of nowhere, how come it has any value? Many ponder this very question. The lynchpin of Bitcoin’s success is the blockchain technology and the possibilities it provides us with. Here are a few points to consider:

Bitcoin can be used as both medium of exchange, and a store of value (the second depends on the first).
The Bitcoin supply is limited: it’s restricted by 21 million, and not all coins are emitted yet. As we know, deficiency adds to the price. So when all Bitcoins get mined, its value will only grow.
Even though volatile, Bitcoin contains legitimacy, investors, and wide adoption – the more people get involved, the more Bitcoin’s hype drives its price.
It should also be mentioned that Bitcoin’s current value is impacted by speculative interest. Although some believe it’s a bubble, price ups and downs don’t discourage traders.
Bitcoin will never use fractional reserve banking – that means that Bitcoin money is backed by Bitcoin money only.

All in all, it’s us, people, making a fuss around Bitcoin and raising its price. In 2017, the crypto community has driven hype through the roof – that’s why prices edged lower.

As the value goes up, heads start to swivel and skeptics begin to soften. Starting a new currency is easy, anyone can do it. The trick is getting people to accept it because it is their use that gives the “money” value. Adam B. Levine

Now that the stage is set, let’s figure out how you can reap financial benefits from Bitcoin yourself.

1000 and 1 model of making money with Bitcoin cryptocurrency

Digital currency is a stomping ground awashed with opportunities and people seeking them. We will discuss the most widespread ways of generating Bitcoin profit or earning fiat with the help of crypto assets.

1. Crypto trading

One of the fastest, simplest, and riskiest ways to make BTC is trading on an exchange. In other words, you buy Bitcoin when its price is low, and sell it when the price rises. This works the same way as with fiat currencies.

However, if you do it by relying on luck or guesswork, your efforts are doomed from the start. Professional traders dedicate a lot of time to learning how to avoid risks and predict the pricing trends. Truly successful investors know that they might lose money in the short term but win in the long term as they invest into their experience and education.

So be sure that you keep improving your trading skills – don’t just buy money blindly believing in ‘signals’ and predictions.

2. Investment in ICOs/IEOs

This is a lengthy and relatively risky way that won’t necessarily make you rich. We all know that cryptocurrency taps into untouched markets; the number of projects driven by blockchain is enormous. Some focus on healthcare and genetics, while others leverage crypto payments to pay for lawyers’ and financial consultants’ services.

Every project develops its own token and launches an ICO or IEO – a crowdfunding campaign for early contributors to donate fiat/BTC/ETH and other currencies to invest in development of the project. Using their money, contributors buy the proprietary tokens. If the project becomes successful and makes its way to the crypto exchange market, you can sell those tokens for Bitcoin. Besides, the value of the coins can increase exponentially.

Unfortunately, the practice shows that 90% of projects don’t make it to the exchange market even after successful ICOs. Therefore, monitor your potential investment opportunities closely. Look at the following aspects:

The team behind the project: their experience, previous projects.
Advisors and sponsors.
The idea and its technical implementation. It should be something outstanding and useful for the community.
Roadmap and plans for the nearest and long-term future.

Do your homework before buying some new coins. Otherwise, your money will disappear with the company.

3. Lend your Bitcoins for interest

If you already have a few extra Bitcoins to spare, grow your wealth through Bitcoin lending platforms. These websites connect crypto owners and lenders for an interest rate. However, this is a risky venture: although borrowing seems to be a sure-fire way of earning money, there is a danger that you won’t get your coins back. Since there’s no collateral that makes the borrower liable for the loan, sometimes lenders are left with nothing in the result.

4. Organize a Signature campaign on Bitcoin Talk

BitcoinTalk is a website that unites content creators and their potential readers. You can use your account signature to advertise campaigns and get paid for the content you create. The list of signatures is present on the website.

Seems easy-breezy? Don't rush into making conclusions. To start earning money, you should become a full member of the website (bec

Does Bitcoin Use Real Money