During these unparalleled times Bitcoin is rising as other stocks start to fall. With the indicator of Bitcoin outperforming gold this month, now is the time to explore the pros and cons of this cryptocurrency. Last month, Isaiah Jackson, certified Bitcoin professional and author of “Bitcoin and Black America”, participated in our Reclaiming Your Wealth: A Financial Empowerment Digital Summit where he discussed how Bitcoin can become as accessible to communities of color. Following, Jackson’s lead we have created a beginners guide to Bitcoin so that our Walker’s Legacy community can thrive financially too.
Bitcoin 101: Intro to Bitcoin and Cryptocurrency
Bitcoin was invented in 2009 by an online personality known as Satoshi Nakamoto. Bitcoin is a peer to peer payment system that allows 100% digital transactions by eliminating banks and other financial authorities. Bitcoin is owned and controlled by no one which brings the power to its users. Essentially, Bitcoin is cybercash, with a total value of $160.4 billion as of March 4, 2020.
“It is the currency of the future” – Isaiah Jackson, author of “Bitcoin and Black America
How is it Performing?
On May 11, 2020, Bitcoin halved. Halving is an event that occurs roughly every four years, or after 210,000 transactions, which reduces the amount of Bitcoin mined in each verification by 50 percent. In this halving event users received 6.25 instead of 12.5. The reason for halving is because Bitcoin is finite, meaning that it will cap at 21 million. Halving occurs to increase the longevity of Bitcoin. The next halving event is presumed to occur in 2024.
How to Invest in Bitcoin
Bitcoin is decentralized, meaning it’s controlled by a network of computers owned by its users. This allows practically anyone to jump into Bitcoin investing. The easiest way to start is by creating a CoinBase account or Uphold, Isaiah’s personal favorite, then linking your card. Luckily mobile payment services like CashApp and Venmo also allow Bitcoin use, so it’s more accessible to the everyday tech user.
Pros and Cons of Bitcoin
According to Isaiah Jackson, the pros of Bitcoin outweigh the cons
“In the black community, especially, the banking industry doesn’t serve our best interest..one of the best things I’ve done in the last seven years is to encourage people to buy or use Bitcoin because it gives you the ability to take control of your money.”
Bitcoin allows people to send money internationally for pennies 24/7. You can store Bitcoin, and no one can directly take it from you. The risks associated with Bitcoin use are mostly related to security as there is no refund insurance and your bitcoin account can be hacked.
Below we have compiled a list of pros and cons so that you can judge Bitcoin for yourself.
- Greater Liquidity Relative to Other Cryptocurrencies
- Increasingly Wide Acceptance as a Payment Method
- International Transactions Easier Than Regular Currencies
- Lower Transaction Fees
- Anonymity and Privacy Relative to Traditional Currencies
- Independence From Political Agents and Creators
- Built-In Scarcity
- Exposure to Bitcoin-specific Scams and Fraud
- Black Market Activity May Damage Reputation and Usefulness
- No Chargebacks or Refunds
For more information on Bitcoin, order “Bitcoin in Black America” by Isaiah Jackson.