Bitcoin is a type of cryptocurrency. What makes these types of currencies so interesting, is the fact that they are completely decentralized. This means that they do not rely on the rules set by a certain government or a central bank. Rather, it is open source and belongs to its users, regardless of where in the world they are. They also do not require a middleman, such as a financial institution, to make transactions. There are no paperwork requirements to set up an account and no credit checks to go through either. All people have to do is set up a wallet, and they are good to go. Android was the first to catch up on this, creating a wallet app, with iOS lagging strangely behind. However, it now seems that they are catching up and the bitcoin wallet iPhone is finally available!
How to Set up a Bitcoin Wallet iPhone Account
Setting up an iPhone wallet account is incredibly easy. It only requires a certified broker that has developed an iOS app, and there are now a few of those out there. Doing so will provide you with a bitcoin address, presented as a random sequence of letters and numbers. You will also receive a unique key, which is the password to your account.
How Does Bitcoin Work?
One of the key things about bitcoin is that it is completely anonymous as a payment processor. It allows you to do three key things:
- You can purchase goods using bitcoin.
- You can send money to others in a completely anonymous way.
- You can use bitcoin as a type of investment.
Merchants the world over have now started to accept bitcoin as payment in their businesses. What this means for consumers is that their purchase is completely anonymous. They can send money to others without anyone knowing who they are, because there is no paperwork involved in making transactions or even in setting up accounts.
Investing in Bitcoin
Bitcoin is still a currency, which means its value fluctuates. How it fluctuates is far more strongly linked to demand than any other currency. The supply of Bitcoin is finite, in as such that, by 2140, there will be exactly 21 million bitcoins in circulation, no more. Hence, supply is not the issue. And since the currency is decentralized and therefore not linked to any central bank or government, geopolitical events will also not impact its value. Rather, it is all down to demand.
What this means, is that bitcoins are volatile. Their price can range from as little as $300 for one full bitcoin, to as much as $2,800 for one bitcoin. The key is that you need to figure out when its value is at its lowest, which is when you buy, and when it is at its highest, which is when you sell. This is the same as with any investment, with the key difference with bitcoin being that you can do all of this yourself, rather than having to rely on a stockbroker.