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What is Bitcoin?

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  • Bitcoin is one of over 1,000 crypto currencies
  • Bitcoin has the largest market cap of all crypto currencies
  • Bitcoin has a market cap about $258 Billion.  Compare that to the 50th largest stock (BMY) of about $101 Billion
  • Bitcoin is one of the oldest, most actively traded, and most popular cryptocurrencies
  • Over 1 million Bitcoin are sold everyday.  Compare that to the 50th largest stock (BMY) of 5 million shares sold per day
  • Over $18 Billion USD dollars of Bitcoin are sold every day.  Compare that to the 50th largest stock selling about $328 million.
  • In other words, Bitcoin has very good liquidity.  It has more Price * Volume than thousands of US traded stocks.  An individual can buy or sell large amounts of Bitcoin and not upset the market.
  • The official website for Bitcoin is https://bitcoin.org/ .  The official Bitcoin organization keeps talking about how Bitcoin is a currency.  We look at Bitcoin as mainly an investment, only sometimes (occasionally) a currency.
  • One great use of Bitcoin as a currency is – buying other cryptocurrencies.  If you want to buy a smaller cryptocurrency, you might buy Bitcoin first at one exchange, then go to another exchange (like ShapeShift), sell your Bitcoin to buy the other cryptocurrency.  Just make sure you have a wallet that will hold the new cryptocurrency.  You might use two wallets – one holding your Bitcoin and another wallet holding the new currency.
  • Bitcoins are calculated down to eight decimal places.  You can buy Bitcoins in increments of 0.00000001 bitcoins.  For example if price of Bitcoin is $14,763.90 and you buy $10 worth of Bitcoin – you would receive about 0.00068000 Bitcoin.  In other words, you do NOT have to buy whole Bitcoins.  You can buy fractions of Bitcoins.

Want to buy Bitcoin quickly with a credit card, debit card, check, or bank wire?  Go here to read our FREE tutorial that walks you through buying your first cryptocurrency.  Designed for people that know nothing about cryptocurrencies.