2018 must be the most remarkable 11th birthday for Bitcoin since it had gone through strong fluctuation and also reached the highest peak at 19,665.39$ at 16/12/2017. Until now, quite a lot of countries have accepted Bitcoin as a transaction tool. Since its birth, Bitcoin did not receive much recognition but it was not sooner than late 1 year, this crypto currency became the most delicious pie for people all around the world.However, the major still have no or not enough knowledge about this potential investment. For that reason, this article will help new investors and traders to understand more into this field and to prevent regretful mistakes.

I. WHO IS BITCOIN’S FATHER?

Bitcoin’s father identity is now still a mystery accept a name which is Satoshi Nakamoto. Many individuals have been regarded as this man, however, no sources have confirmed the real face behind Satoshi Nakamoto. The followings are some individuals who had been believed to be the mystery Satoshi Nakamoto.

Figure 1: Mr. Dorian S. Nakamoto

Figure 2: Mr. Craig Wright

Figure 3: Mr. Elon Musk

Figure 4: Mr. Nick Szabo

II. THE UNEXPECTED PEAK

Figure 5:  Bitcoin Peak in 12/2017In 16/12/2017, Bitcoin’s price reached the peak at 19,665.39 USD at various big exchanges in the world. The reason for this is believed to be the purchasing waves from sharks (strong investors).

III. THE FIRST NATION TO ACCEPT BITCOIN

Germany is the first mover in accepting Bitcoin in the whole world. In August 2013, at the price of 110 USD, Bitcoin was one of the official currency and allowed to be in circulation by Germany’s Finance Minister.

IV. COUNTRIES WHICH FORBIDDEN BITCOIN

Russia and China are 2 countries that forbidden Bitcoin. In January 2017, Central Bank of Russia warned people that Bitcoin transactions mostly are speculation and this currency has high risk of devaluation “The task of national and supranational regulators is to minimize those risks via developing a coordinated approach to regulation of the cryptocurrencies market and restricting the potential of high-risk investments and transactions.” (CoinDesk, 2018).China also did bring out regulations against Bitcoin. Although there are countries that accept the existence of Bitcoin, the others did not.

V. WHAT ABOUT BITCOIN?

Since there has been too much unreliable information in the market as well as the negative influences from media channels, large number of people do not have full knowledge about Bitcoin. The followings are the basic characteristics of Bitcoin:

1. Bitcoin never exceeds 21 million in number and coin issuing periods get further by times.
2. Whenever coins are issued in exact rate of process, they are randomly transferred to people who contribute “Auditing methods” to ensure system securities. People contributing more have greater advantages to receive new coins, however, ratio for issuing those will never increase. From that, inflation is determined to be at 0.
3. Bitcoin is transacted like other currencies at trading websites and this is how market price is set.
4. Each Bitcoin can be divided for 100 million. So that traders can own 0.00000001 Bitcoin.
5. Bitcoin can be replaced. They can be divided or added in your account.
6. Bitcoin exists in a free market and always contains market price. As Bitcoin is a global crypto, it also has own prices in every currencies of big countries: Euro, USD, Yen, etc.

VI. CRYPTO MINING

Mining is definitely a familiar term for crypto traders. General speaking, mining is an action to use technology’s strength to solve security problems on Bitcoin blockchain and then receive Bitcoin. However, regular computers do not consist enough functions for this work so coin miners have to equip specialized mining tools.

VII. BITCOIN STORAGE

In order to ensure security, Bitcoin can be stored by one of these ways:

• Coinbase Wallet
• Blockchain
• Bitcoin Desktop wallet
• Bitcoin Mobile wallet
• Hardware wallet
• Paper wallet

Each storage methods have different pros and cons. Traders should evaluate and choose the most appropriate one with highest security system.

VIII. BITCOIN HARD FORK

In 1/8/2017, Bitcoin came through a hard fork process and that was the first one since its existence. The result of the first hard fork is Bitcoin Cash – one of the top coin recently. Beside Bitcoin Cash, 2 others folks were created in 2017 which are Bitcoin Gold and Bitcoin Diamond. However, it is predicted that there would be other 50 folks of Bitcoin published in the year 2018. Yet, we cannot know is this an opportunity for Bitcoin market or just another mess?

IX. THE FIRST BITCOIN EXCHANGE COLLAPSED

In March 2014, the first exchange to make Bitcoin transaction – MT.GOX confirmed bankrupt because of unprotected security which led to thievery. After this issue, Bitcoin’s price decreased by 2%.

X. PREVENT RISKS FROM BITCOIN

It is undeniable that Bitcoin market as well as crypto currency market are extremely complicated and risks cannot be predicted. For that reason, investment decisions into these markets require reliable information and wise vision. It is not hard to find cases that traders meets terrible fails because of being psychologically trapped by big investors.Here are 10 basic things that you must know if you want to earn money by investing in Bitcoin. We hope that this article is helpful!