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It was not until 2013 that Bitcoin became a hot topic of interest. The virtual currency gained over 300% from 2011 to 2012 and since August of last year, Bitcoin has increased in value around 400%. While its recent performance has been lackluster, (down around 34% since January 1st), venture capital firms and investors around the world continue to bet on the cryptocurrency.
The simplest way the Average Joe can invest in Bitcoin is to outright buy some. Buying cryptocurrencies today is simpler than ever, with many established firms in the US and abroad involved in the business of buying and selling bitcoins. For investors in the USA, the simplest solution is Coinbase broker. The company sells BTC to customers at a mark-up that is usually around 1% over the current market price of Bitcoin.
Bitcoin is hot right now and investors and venture capital firms are betting that it is here to stay. For the average person, numerous ways exist to get into investing and buying Bitcoin. In the U.S., the most popular avenues are CoinBase, Bitstamp and Local Bitcoins. Each have their advantages and disadvantages, so do your research to find the best daily trading strategy for you. Remember, crypto is a risky investment and you should never invest more than what you can afford to lose.
It seems silly to some people that one bitcoin can be worth hundreds of dollars. What makes bitcoins valuable? Bitcoins are scarce and useful. Lets look to gold as an example currency. There is a limited amount of gold on earth. As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine. The same is true with Bitcoin mining. There are only 21 million Bitcoin, and as time goes on, they become harder and harder to mine. Take a look at Bitcoins inflation rate and supply rate
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