All you need to know before buying bitcoin.
Bitcoin is a digital currency that exists as a record of transactions between different addresses. These transactions are added to the blockchain every 10 minutes and verified by network nodes. It’s decentralized because it doesn’t rely on any central authority to process or maintain the network but allows its users to control their financial transactions directly. Bitcoin uses a peer-to-peer payment system that enables users to pay each other without needing an intermediary such as PayPal or Visa to help them make payments.
Bitcoin has become increasingly popular over recent years due to its value growing rapidly, making it one of the most valuable cryptocurrencies today. The price of Bitcoins peaked at over AUD 20K per coin some time ago, so now might be a right time for you to buy your first bitcoin!
Is bitcoin a legit investment?
There’s a lot of hype around when you buy bitcoin in Australia and other cryptocurrencies. Is it all good news? Before you jump into bitcoin—or any other cryptocurrency, for that matter—you need to be prepared. Here are some queries you should answer before buying:
- How much money to invest?
- What are you investing the money in exactly? And why?
- Understanding that the investment is enough to handle the financial hit if things go south?
Is bitcoin legal in Australia?
Bitcoin is legal in Australia, but the government does not regulate it. It’s also not regulated by the Reserve Bank of Australia (RBA), which means you can’t get a hard copy of your transaction history. This means that if something goes awry with your crypto trading or you have problems with scammers or fraudsters, neither ASIC nor any other government agency will be able to help you out.
While Bitcoin isn’t specifically illegal anywhere in Australia yet, there is still some debate about whether regulation should be implemented and how strict such regulation should be.
Should one invest in Bitcoin?
You should buy bitcoin in Australia if you are willing and able to bear the risks of an extremely volatile asset. It is not regulated by ASIC, meaning there aren’t any rules or regulations around how it can be sold and bought, nor any protection for consumers who lose money through it.
Any government or central bank does not back Bitcoin: its value comes from people’s belief that it has value and that others will accept it as payment for goods or services. It’s like gold—if enough people think that gold has value, then they will trade with each other using gold as a currency; but if no one believes that value exists anymore (for example, because all the gold has been mined), then there won’t be much point trading with it anymore either!
How does Bitcoin work?
Bitcoin is a digital currency. A central authority does not control it, and it’s not physical. It’s also a peer-to-peer network that provides security and validation to Bitcoin transactions. Transactions are validated by the network, which means they’re encrypted using cryptography, so they can’t be forged or manipulated.
Bitcoin uses cryptographic algorithms to generate coins, verify transactions and secure its blockchain (the underlying technology behind Bitcoin). The algorithm was designed to ensure that only 21 million Bitcoins could exist at one time to control inflation in the system; this number will never change unless there’s an update to the protocol itself (which has happened several times already).
In the end, it’s up to you to decide whether or not you want to invest in bitcoin. There are some great benefits to buying bitcoin, and if something happens with your bank account or credit card, then there will still be an option available for payments.
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