Holding Bitcoins:
Its time to explore how you will make money simply by holding on to your Bitcoin. It doesn't matter how you initially acquire your Bitcoin. Once you've got it you'll greatly benefit by holding on to it. This is a passive strategy meaning once you have the Bitcoin in your possession there's really no more work to do. All you have to do is make sure that your wallet is secure and that's it.
The reason you'll make money over time is that bitcoin is going to continually go up in value and the reason it's going to keep increasing in value is mainly because of its scarcity.
Bitcoin is often referred to as the digital gold because it has a lot of the same characteristics as gold scarcity being one of them for the scarcity mean though it means there is a limited supply of it there's only so much of it to go around a limited supply. isn't necessarily a problem it's only a problem when there is a lot of demand in a situation where you have a larger and larger number of people wanting to get hold of something that is in short supply.
Bitcoin Value Increase:
The value of that thing increases because people are willing to pay more and more for it to guarantee that they get some gold is scarce because we know there is only so much of it some of it we've already dug out of the earth and some of it is still buried.
In any case we know there is only so much of it in the ground and it takes time to dig some more out if there's a sudden spike in demand and this is where Bitcoin and gold are very similar like gold. There is only ever going to be so much Bitcoin.
Bitcoin Vs Gold Holding
Bitcoin has to be mined the same as gold but bitcoin is found using digital mining rather than physical mining in fact there will only ever be million bitcoins in existence. One million bitcoins have been mined that's it. No more can be created the same as we can say that we can't create any more gold once it's all been dug out of the ground so that's the supply side of things the next question is why is the demand for Bitcoin going to keep increasing. The answer to that lies in how useful Bitcoin is and to how many people Bitcoin solve. Several huge problems that exist in the world, so it's only a matter of time before more people discover that it's the solution to their problem and then they'll wants them to now this course isn't intended to explore all the various problems of Bitcoin solves but let's look at just one of them for the purposes of illustrating.
First Global Currency:
How Bitcoin will become more valuable the longer you hold on to it. Bitcoin is the first ever global currency that is not controlled by any bank or government. This makes you superior to regular currencies because it cannot be controlled by anyone. It cannot be faked and it cannot be stolen. Bitcoin also cannot be created at will like regular currencies government's often print new money to finance Wars so in that sense bitcoin is the currency of peace.
Internet Money:
Bitcoin is also money for the Internet age we can now send photos songs videos documents and messages of all kinds to people. On the other side of the world in seconds just by attaching them to an email. Bitcoin now enables us to add money to that list to bring this lesson to a close then there is one obvious question left, if there is only ever going to be million bitcoins, how is that going to be enough for more than billion people well. Bitcoin acts like digital gold remember which means it can be broken into smaller pieces you can have a kilogram bar of gold or you can break it into, gram bars similarly you can have one whole Bitcoin or you can break each Bitcoin into a hundred million pieces so if a single Bitcoin ends up being worth million dollars then the smallest individual piece will be worth about a penny so get yourself some Bitcoin make sure it's stored safely and keep your eye on the price as it makes its way to the moon you. Thank you