Should I invest in Bitcoin in 2019

Buy bitcoin now? Forecasts, experiences, courses and news

Blockchain, cryptocurrencies and especially Bitcoin have been on everyone's lips for some time. Nevertheless, many find it difficult to buy bitcoins, understandably. Bitcoin can be an opportunity to secure assets, in particular protection against negative interest rates and ecological buying behavior as well as a possible holistic rethinking.

Although the topic of cryptocurrencies, blockchain and Bitcoin has been discussed for years, only very few know what it actually is. One reason is that it is until then there was nothing comparable. So Bitcoin is something completely new, something that we haven't had anything to do with in everyday life until now.

People are generally either skeptical about something new or curiosity wins out. Bitcoin (abbreviation: BTC) and cryptocurrencies in general are seen as very controversial. Yet it cannot be dismissed out of hand that in addition to speculators and private investors, more and more large companies are buying Bitcoin.

Buy bitcoin: choose from the table of contents!

In the following, the most important questions and answers about buying Bitcoin for entrepreneurs answered. The technical aspects such as blockchain are discussed less, but more the practical application, the value, trading platforms and marketplaces as well as profits and risks:

Why should companies buy bitcoins?

The main reason is that, according to popular belief, the Today's currencies such as the euro and the US dollar will no longer exist forever in this form. It's too big Depreciation by the inflation of the monetary system, which in practice means that the owner of a euro will receive fewer and fewer goods or equivalent value for it in the future. Every entrepreneur is already feeling the real effects of increasing contributions to health insurance, tax consultants are becoming more expensive or materials and raw materials for building a house are just about to explode.

In general, one speaks of inflation, although price increase or Currency depreciation the better terms would be. Because inflation in itself simply means an expansion of the money supply, which, viewed in isolation, has no effect. In contrast, Bitcoins are limited to 21 million pieces. Similar to some raw materials such as gold and silver, these cannot be increased at will.

Bitcoin could therefore change the status of the digital gold take over and the one Value memory. Bitcoin and gold have many similarities. The advantage of Bitcoin over gold, however, is that the owner can trade or pay with it even in the smallest of units.

It is rather unlikely that bitcoins will replace the previous monetary systems and currencies overnight, at least not in their current form. Transactions in the Bitcoin system are even comparatively slow and expensive. But very sure. However, this could still change in the future.

The main reason entrepreneurs should consider investing in Bitcoin is the same as generally saving money or investing money in a long-term investment. You want to secure your wealth and be able to buy exactly what I would get today in 10 or 20 years.

Where can entrepreneurs buy Bitcoin?

The easiest way to do this is via a reputable crypto exchange. There, users can transfer so-called fiat currencies (fiat money wikipedia), such as euros or US dollars, and then buy coins with them. Some exchanges also offer the option of Buying bitcoins with credit card, however, these transactions are often associated with high fees.

To buy bitcoins, entrepreneurs need one Crypto wallet. This is comparable to an electronic wallet or a checking account. Bitcoins do not exist physically, they have to be stored digitally.

There are more optionsto get a crypto wallet. If you want to buy bitcoins on a crypto exchange, a wallet is usually set up there when you register. The purchased coins are then kept there.

Recommended trading platforms for buying Bitcoin:

What do you need?Beginners / beginnersAdvancedProfessionals
buy important cryptocurrencies (Bitcoin, Ether)
Earn bitcoin
real DE current account incl.
Set price alert
secure wallet incl.
buy more cryptos
Trade cryptocurrencies
Set stop limit
SeatGermany

Malta

Malta
recommended trading venue

nuri, formerly bitwala * (recommended)

binance lite * (recommended)

binance pro * (recommended)

How does a Bitcoin purchase work in practice?

  1. Registration with a crypto exchange. The registration requires the entry of personal data and the upload of the identity card. It is therefore not possible to buy Bitcoin anonymously. As soon as the data has been verified, the personal account will be activated.
  2. Transfer the corresponding amount to the account at the crypto exchange.
  3. Buy bitcoins.

When registering, the crypto exchange creates an account and a wallet for the user on the platform. The user can transfer money to the account or withdraw money when buying or selling coins. The purchased coins are stored on the wallet.

As already mentioned, there is also the option to buy bitcoins with a credit card. Here, however, users should pay attention to the fees that are incurred for such transactions. The Bitcoin can of course also be sold again via the above providers.

Do I always have to buy a whole bitcoin?

No! In Bitcoin trading, up to 8 decimal places are taken into account. Similar to euro cents, so it is with cryptocurrencies. In Bitcoin this is called Satoshi. The conversion is: 1 Satoshi = 0.00000001 BTC.

So if you share 1 BTC 100 million times, you get a satoshi.

Therefore, buyers can also buy half a bitcoin or 0.0001 BTC or any other amount of bitcoin. Of course, the fees should be taken into account when buying or making transactions, so that it doesn't make sense to buy a bitcoin with just one euro. The value of the Bitcoin share is consumed by the transaction fees.

What should entrepreneurs consider before buying Bitcoin for the first time?

Before making a purchase, business owners should consider whether they can do this on a private or on a business basis to do. Both have advantages and disadvantages and also certain tax implications.

On a private basis, the legal situation is currently such that exchange rate gains from the sale of Bitcoins are tax-free after a holding period of more than one year. In general, however, entrepreneurs should have one in advance competent tax advisor consult. Find a tax advisor who can give you competent tax advice on buying Bitcoin!

How safe are bitcoins?

When it comes to security, you have to several aspects must be taken into account. The BTC course, i.e. the price of a Bitcoin, is very volatile against the dollar and the euro. It is not at all certain how the price and thus the value of Bitcoin in euros or dollars will develop in the next few days or weeks.

Since investing in cryptocurrencies, especially Bitcoin, is a long term matter is, the current Bitcoin rate plays less of a role. You can of course try to buy at the lowest possible Bitcoin rate in order to acquire the highest possible Bitcoin share. Since a bitcoin will always remain a bitcoin and the amount of bitcoin (in contrast to the euro or dollar) cannot be increased at will, there is a realistic chance that the BTC price will increase in the long term.

When it comes to security in relation to the Safekeeping of coins there are also a few things to consider. Since cryptocurrencies can be stored digitally, there is of course always the risk that hackers will gain access to them. This is problematic with so-called hot wallets, i.e. wallets that are permanently online.

This could be problematic, for example, if the user leaves the coins directly on the platform. On the other hand, it is much safer if you have the Transfer coins from the platform back to your own crypto wallet. Again, there are different variants.

Recommended hardware wallets:

One should always make sure that the delivered Wallets in their original packaging arrive sealed in foil. The wallet of an already opened packaging should never be used!

Should entrepreneurs invest all of their assets in Bitcoin?

No. It can be useful to have one To invest part of the assets in Bitcoin. Entrepreneurs could just as easily invest part of their assets in shares invest or in physical gold or property. There is not only one way to escape the threat of monetary devaluation.

Bitcoin delivers, for example no regular income or distributions. Apart from that, entrepreneurs should always have a certain liquidity reserve for short-term needs. Since the Bitcoin price is also very volatile, it would be unreasonable to keep the liquidity reserve in BTC. At the beginning of the corona pandemic, for example, the BTC price initially collapsed by 60 percent.

The investment in Bitcoins should basically be considered as long term investment be considered. Of course, investors can also speculate on short-term price differences, experts speak of trading here. But that's a whole different direction!

Expert interview with block trainer on youtube

We from the founder's lexicon have asked an expert (known as "blocktrainer" on youtube) about Bitcoin through our YouTube channel, see for yourself! (Directly to the livestream!)

In order to clear up many more ambiguities around Bitcoin, every interested entrepreneur should have read the book "The Bitcoin Standard". Absolute recommendation from the editors, because this book:

  • Eliminates misunderstandings about Bitcoin.
  • Explains the current problem of our monetary system and how it is wiping out the wealth of entrepreneurs and individuals from year to year.
  • Shows how Bitcoin can offer a solution to wealth loss.

Bitcoin old wives' tales and fallacies

There are many Benefits of BitcoinAccording to some sources, Bitcoin also has many disadvantages, but are there really disadvantages that make Bitcoin as bad as it is always portrayed in the media? With this table, the founders lexicon would like to offer parole to the many conspirators, hate speeches and badmakers of Bitcoin, because:

argumentAgainst bitcoinPro bitcoin
power consumptionBitcoin uses as much energy as the Netherlands.How much energy does the euro need through ATMs, banks and mainframes, even though Bitcoin is more secure and decentralized?
DarknetMany illegal transactions are carried out with Bitcoin, especially in the Darknet.Most illegal business is still done in US dollars. And: The largest trading platform on the Darknet has been blown, precisely because Bitcoin was used to pay. If you had used a different, really anonymous payment system, that would not have happened.
volatilityThe Bitcoin price fluctuates far too much to be recognized and used as an official payment system.It should not be used as an official means of payment, as it is intended as a reserve currency and thus replaces and thus reintroduces the non-existent gold standard. The price fluctuations are a problem for speculators, but not for people who want to secure their assets in Bitcoin for the long term. Exchange rate fluctuations are only so extreme at the moment because larger purchases and sales of Bitcoin when the market capitalization of the cryptocurrencies is not yet too high lead to these changes. The more money (euros and US dollars) that is backed up in Bitcoin, the higher the market capitalization becomes and the less the price fluctuates with larger purchases and sales. See also the market capitalization of gold and compare this with the capitalization of Bitcoin.
coverBitcoin is not backed by any other currency or an adequate value or state.

The euro and the US dollar have not been secured or covered by a stable value such as gold for decades. Only the large and widespread use and acceptance lead to such extensive use and dissemination. The value of Bitcoin is described by the limit on the number of Bitcoins available (21,000,000). In addition, the intrinsic value of Bitcoin is shown in the enormous computing power that has to be provided for every transaction. This phenomenon is called: Proof of work. This means that Bitcoin and its transactions cannot be falsified, copied or manipulated, nor can they be hacked, as no one can provide such computing power without receiving a corresponding consideration. The security of Bitcoin and thus also the value of Bitcoin will continue to be guaranteed via blockchain technology. Nobody can falsify the cash book, since there are further copies on other computers and the checking of the original can be carried out by each individual participant in the shortest possible time. That makes it unique and much safer than euros or US dollars. The security of euros and US dollars is guaranteed by counterfeit-proof bills, which is also a huge effort, but does not represent 100 percent security, as countless euro blossoms have confirmed in the past.

Ergo: Bitcoin does not need an equivalent, this is guaranteed by the acceptance of the Bitcoin holder, the security of the system and the limitation of the number of Bitcoin. Just like gold, only that it can be sent very quickly on the Internet.

Means of paymentBitcoin is far too slow to be recognized and used as an official payment system.Bitcoin is not intended as a means of payment for everyday use. It is to be seen primarily as a backup of a daily currency. Paying for a café or a pizza is extremely inefficient with Bitcoin, as it is very expensive and too slow. Only the value protection of assets in the form of euros or US dollars can be seen in larger positions as a use case in Bitcoin. While Bitcoin sees and expects a means of payment, it is misinformed.
speculationBitcoin is far too slow to be recognized and used as an official payment system.You shouldn't speculate with it, but secure your generated values ​​and assets in euros with Bitcoin, so that they do not expire in the future due to the inflation of the euro. There are always speculators with currencies, even with euros and US dollars people speculate, earn and lose a lot of money. It has nothing to do with Bitcoin.
no currencyBitcoin is not a currency.According to the definition, a currency is "legal tender of a country or the countries of a monetary union" since I can buy something with Bitcoin in my country and can have my services or products paid for in Bitcoin. It is used, used, accepted and is now widespread all over the world.
Hacker attacksThere is a high risk of hacker attacks.This risk also exists with euros or US dollars. Even online shops and other applications on the Internet are constantly exposed to this threat. Bitcoin has not yet been successfully hacked once.
regulationThere is no regulation by financial regulators.What will legal regulation of money improve? As you can currently see in the legal currency system, regulation leads to even more money and more INflation, by the legal moneylenders.