Buy gold with bitcoin. It’s one of the best money making and investment protecting decisions you can make. As the stock market continues to flirt with new highs, many investors are rushing to protect their hard-earned gains, by cashing out a portion of their portfolio, in order to acquire the safety, security and hedging benefits of physical gold, silver, and other precious metals. But the biggest news and the hottest trend is for successful bitcoin investors to lock in gains and diversify their holdings with a small handful of experienced precious metal companies that have streamlined the process. American Bullion became a leader of that trend, back in 2013. The conversion process is relatively simple and once appropriate accounts are in place, transactions can be completed within minutes, making it simple to buy gold with bitcoin.
To buy gold with bitcoin is not only simple, but brilliant at the same time. Not only can digital transactions be performed at any time, but there is no need to physically visit a store, bank or any other type of physical establishment. Transactions can take place quickly and from the comfort and privacy of your own home. Marketing 101 tells you to sell high and buy low, so how could you go wrong by selling bitcoin and capturing high profits, while acquiring the financial bedrock, growth potential, and security of gold and other precious metals, at prices far from their highs? Never be afraid to take a profit and never be afraid to use profit to insure your future, by choosing to buy gold with bitcoin.
Buy gold with bitcoin, to diversify and protect your portfolio, particularly if you have already made substantial gains. Bitcoin obviously has the potential for tremendous gains, but it is still in its infancy, so taking profits all along the way is a wise and common technique for savvy and successful risk-oriented investors. Meanwhile, physical gold is a tangible asset that has been a reliable and valued global currency for more than six thousand years. So protect your profit by deciding to buy gold with bitcoin.
To buy gold with bitcoin, call American Bullion, at (800)465-3472. Their years of precious metals experience and award-winning customer service provision ensures a positive result for your efforts. The volatility of bitcoin provides an ongoing opportunity for more than sizeable gains, even if you’re just beginning, but the opportunity to convert those gains into a more stable investment that protects your entire portfolio from the ravages of today’s potential financial dangers, such as an over-heated and over-sold raging bull market, whose foundation has become as solid as an active earthquake fault, rampant global currency devaluation, and constantly growing geopolitical turmoil. Don’t get caught without a chair when the music stops! Call the experts at American Bullion today, in order to buy gold with bitcoin.
What is bitcoin?
Bitcoin is a digital currency. It was created by someone (or a group of people) known only as Satoshi Nakamoto. It was brought about by popular demand, because traditional investments like treasury notes and bonds have had their potential growth severely limited, by the Fed’s ineffective monetary policy. And the stock market, though still growing, is incapable of providing the stellar returns that the relatively new cryptocurrency market has and may continue to deliver. These financial shortcomings combined with a public perception of greed, carelessness, and short-sightedness on the part of banks and public companies, which was vividly confirmed by the 2008 financial meltdown, appears to have made a very clear and well-understood statement to investors, “You don’t control your money and we who do (government and corporations), don’t care in the slightest about your financial well-being.” To add insult to injury, the American taxpayer was given the bill for Wall Street’s folly, under the pretense that these organization’s had become “too big to fail.”
A digital currency like bitcoin has no physical property, like a printed dollar bill or minted coin. You can’t handle it or put it in your purse. Nevertheless, it is monetary credit that exists in cyberspace. It has definite value and functions like the electronic version of government currency. Like cash, bitcoin spending occurs as a peer-to-peer transaction from one bitcoin spender to the next. It is essentially passed on from one computer to another, the same way that cash is passed from one person to the next. Participants in a bitcoin transaction transmit and receive the digital currency over the internet, through a bitcoin wallet.
If you see Bitcoin written with a capital “B,” then it’s referring to the Bitcoin blockchain technology that Nakamoto described in a 9-page white paper. If you see bitcoin written with a small “b,” then it’s referring to the digital currency. Moreover, “Bitcoin is a peer-to-peer version of electronic cash which facilitates online payments to be sent from one party to another without going through a financial institution.” If a trusted third party, like a bank, is needed to prevent double-spending, then the technology has no value, so Nakamoto created and proposed a solution. The peer-to-peer “network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.”
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Five Reasons People Invest in Bitcoin
Bitcoin has pioneered the foundation of a popular and acceptable digital currency. It is bitcoin’s independence from any centralized government control that has resonated with the global public. Any hope that the government or public corporations had learned a lesson and were adjusting course to prioritize investor well-being evaporated, as investors watched; banks exponentially increase their use of dangerous derivatives, the Fed hold interest rates at absurdly low levels for far too long, and to allow $1.7 trillion in cheap Fed money, earmarked for use by public companies to improve maintenance, infrastructure, and expansion to instead become part of $2.1 trillion used by public companies for stock buyback programs, which artificially inflated stock prices, inflated executive bonuses, and left the company fleeced, impotent, and incapable of expansion, even if the opportunity, not being looked for, were presented. Further Quantitative Easing, Bail-In’s, and a devaluing dollar versus other world currencies, have only served to exacerbate those concerns.
When things progress in an orderly and predictable manner, investors tend to apply a risk-on attitude, because conditions favor a logical progression to an anticipated end. But when economic chaos or other uncertainties destabilize the marketplace, the potential for interruption or derailment of a logical progression increases and the need for safe harbor increases as well. Unlike fiat currencies, bitcoin has a limited supply. Also, like precious metals, it needs to be mined. No doubt that the value of bitcoin can be volatile, but in the event of a major currency devaluation, it’s quite possible that bitcoin could become quite solidified and appreciated as a digital currency and store of value. It would never be recommended as a replacement for the precious metals portion of a portfolio, but it does represent another financial diversification, away from common “paper assets,” that cannot be matched by most other investment instruments. The condition is such that as the threat of uncertainty increases, so too does the demand for gold, silver, and other types of safe harbor investment.
Anyone concerned about anonymity, privacy and or security needs to be their own gatekeeper, by keeping their addresses absolutely secret. Although bitcoin transactions are safe and secure, they are also public, traceable and permanently recorded within the bitcoin network. However, bitcoin addresses are the only information used to conduct transactions, delineating where bitcoins are allocated from and delivered to. Best practices say that you should use a new address for each payment received. This practice keeps transactions isolated from each other, which is necessary because address balances and transactions are readily available to the public. Utilizing multiple wallets is another technique that can be used to isolate transactions. Perhaps you also want to make use of a free software tool like Tor, which permits you to mask your computer’s IP address, so it cannot be logged by others.
Bitcoin’s biggest benefit, according to recent investor surveys, is investor appreciation of freedom from banks and other fee-driven third party intermediaries. Investors complain that the fees and/or “convenience tax” assessed by banks and other such “service” organizations have become insidious, expensive, and omnipresent. Bitcoin is a viable “niche” alternative at this time. But as it becomes more readily accepted for payment, it will ultimately achieve critical mass and general acceptance. Another advantage of bitcoin is that it is “borderless” in the sense that it is not tied to any particular global currency and therefore doesn’t carry the baggage of any countries fiat currency.
The World’s Top 5 Bitcoin Tax Haven Countries are: Germany, Denmark, Singapore, Belarus, and Slovenia. Hong Kong, New Zealand, Switzerland, Barbados, Mauritius, and Malaysia will also appear on the list, due to their lack of capital gains tax. In the United States, the IRS issued this guidance back in the spring of 2014.
The important thing to realize about bitcoin is that the government says it is to be treated as property for U.S. federal tax purposes. Further details, including a set of questions and answers, have been posted by the IRS and can be viewed here.
History of Bitcoin
Bitcoin was started, by a person or group of people, under the pseudonym Satoshi Nakamoto. On October 31, 2008, “Bitcoin: A Peer-To-Peer Electronic Cash System” was posted to a cryptography mailing list, under that pseudonym. The white paper outlined exactly how bitcoin was designed to operate. On January 8, 2009, the initial version of bitcoin was announced and soon after, bitcoin mining began. The original accounts are no longer active and the 50 bitcoins in Nakamoto’s wallet were never spent. Who he, she or they are may never really be known, although many have laid claim and been exposed as frauds. In a recent Fast Company article, attention was brought to the fact that Satoshi Nakamoto could be a group of investors including Neal King, Vladimir Oksman, and Charles Bry. The article describes a series of peculiarities and coincidences leading the researcher to these people, due mainly to a secure communication patent that they filed for about two-months before the Bitcoin.org domain was acquired, by an “unknown person or entity,” on August 18, 2008. Although we may never truly identify Satoshi or the creators, there is no doubt that bitcoin and the Bitcoin Blockchain Tchnology has sent sea change ripples through the entire financial community.
Dell, the computer manufacturer/retailer, was one of the first major companies to accept bitcoin as payment. Two to three percent savings on transaction fees was not missed by many who initially considered acceptance. Soon, the acceptance list began
How Does Bitcoin Work?
Bitcoin is a global digital currency or “cryptocurrency” that operates on a public ledger, known as the blockchain. It is a virtual currency, because it is digitally transferred and “exists” online only. Miners are responsible for insuring that bitcoin transactions are legitimate and properly recorded. Simply put, miners publish a group of transactions called a block, which records every new bitcoin transaction made during a set timeframe. New blocks are incorporated into the blockchain public ledger. Individual transactions are signed by a private key and verified by the corresponding public key. This provides mathematical proof that they have come from the owner of the wallet, and a failure to match, nullifies the transaction. Bitcoin and other cryptocurrencies remove the need for banking or governmental oversight, which was their greatest initial attraction, personally for many and monetarily for all. Each bitcoin address is unique to each individual user and their personal bitcoin wallet. Although every bitcoin transaction is digitally confirmed, it is completely anonymous at the same time, due to the fact that individual users are only identified by their user address. If a different user address is used for each individual transaction, trackability although public, could be all but impossible.
Who Accepts Bitcoin?
The original bitcoin purchase was 10,000 bitcoins used to pay for two Papa John’s pizzas, which at today’s prices would unequivocally qualify it for “The Most Expensive Pizzas of All Time.” Many promotions were attempted, but the first retailers to lend serious credibility to bitcoin acceptance were Dell Computers, Overstock.com, and Newegg. Later in 2014, the Commodity Futures Trading Commission (CFTC) began listing an over-the-counter swap product, based on the price of bitcoin. Microsoft and Xbox joined the list before the end of 2014. American Bullion was the First U.S. Mint-listed Precious Metals Dealer to accept bitcoin for purchase of physical gold, silver and other precious metals, in late 2013. There are currently many hundreds of retailers accepting bitcoin for payment and more are added near daily. From Amazon to Zappos, services and products of all types are available, from the existing range of accepting retailers.
What Business Leaders are Saying about Bitcoin
Sir Richard Branson, founder of Virgin Galactic and business magnate says:
“Well, I think it is working. There may be other currencies like it that may be even better. But in the meantime, there’s a big industry around bitcoin. –People have made fortunes off bitcoin, some have lost money. It is volatile, but people make money off of volatility too.” (CNBC)
Peter Diamandis, founder and chairman of the X Prize Foundation says:
“At its core, bitcoin is a smart currency,designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, and reduces the need for lawyers in trasitions…all good things.”
Jeff Garzik, co-founder of Bloq Inc. and Bitcoin developer says:
“When I first heard about Bitcoin, I thought it was impossible. How can you have a purely digital currency? Can’t I just copy your hard drive and have your bitcoins? I didn’t understand how that could be done, and then I looked into it and it was brilliant.”
Al Gore, former vice president of the United States says:
“When bitcoin currency is converted from currency into cash, that interface has to remain under some regulatory safeguards. I think the fact that within the bitcoin universe an algorithm replaces the function of the government …[that] is actually pretty cool.”
John McAfee, founder of the anti-virus software company McAfee Associates says:
“It is not a speculative investment even though it is being used as such by other people. As Bitcoin network grows the value of Bitcoin grows. As people move into Bitcoin for payments and receipts they stop using US Dollars, Euros and Chinese Yuan which in the long-term devalues these currencies.”
Peter Thiel, co-founder of PayPal says:
“PayPal had these goals of creating a new currency. We failed at that, and we just created a new payment system. I think Bitcoin has succeeded on the level of a new currency, but the payment system is somewhat lacking. It’s very hard to use, and that’s the big challenge on the Bitcoin side.”