In The Philippines, Don’t Buy Bitcoins

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(Last Updated On: September 22, 2021)

 

Should You Buy And Invest In Bitcoin In The Philippines? 

 

Filipinos are looking for a good and fast way to grow their money in the Philippines

Bitcoin seems to be the answer to the big question, Is it becoming a hype?

Maraming Pilipino is investing and buying Bitcoin. should you invest? Should you buy as well and join the gang?

Before you put in your hard-earned money, it’s better to be cautious and be skeptical. 

 

What Is Bitcoin?

 

Bitcoin is a digital currency. You cannot carry it around in a bag, store it in your safe or wallet. Hindi ito katulad ng pera or your peso na pwede mong mahawakan.

 

 

When you get paid from your job, It electronically deposits the money in your bank account or you get paid cash.

The money is in your bank account because your employer deposited a check or cash.

The bank acts as a third party, sitting between you and where your money comes from.

Then you pay your bills online and buy groceries with your debit card or cash.

The difference is that you can withdraw cash from your bank account. It is something real that you can hold in your hand.

With bitcoin, you can’t unless you convert it to other forms of currency 

 

What Does Bitcoin Have That Cash Doesn’t?

 

There is a limit to the number of bitcoins available so as more people hop on the bitcoin wagon, the value of each bitcoin increases. 

It is very simple to use. Once you join the bitcoin gang, you can pay out or receive bitcoins so easily, it is like sending someone a text message.

They record each bitcoin transaction in a way that prevents it from being manipulated. There are no fake charges with bitcoins. This technology that bitcoins used called blockchain

They do not regulate bitcoins so there is no big bank manipulating the flow of bitcoin. Transactions are private, peer-to-peer, and no one can swoop in and freeze your bitcoin account. But, this might be about to change as countries are adopting the use of bitcoin.

Let’s watch this space and see what happens.

Governments might intervene if many people use bitcoin for their everyday purchases, and regulate its use.

 

Problems With Using Bitcoin

 

The drawback of using bitcoin is that you have to learn a new money method.

We are used to using cash from early on when you’re handling your money.

To use bitcoin, you need to have a bitcoin wallet. This means you need to learn about where bitcoins come from and how you can spend them. Or turn them into cash. 

 

 

Another problem with bitcoins is it’s not accepted everywhere, although this might change.

The list of online stores and services that accept bitcoin is growing. There are places where you can buy gift cards with bitcoin and then use the gift card to shop.

In November 2017, a $50 (USD) Amazon gift card cost 0.009685 BTC.

There is a limit to the number of bitcoins that will ever be available, the ability to mine for bitcoins is slowing down. Of course, this also means that the price of bitcoin is rising.

Good for sellers, not so good for buyers. 

 

 

Bitcoins Can Be Stolen?

 

Yes, they are digital but you need to keep them in a wallet not a good old-fashioned wallet but a wallet stored digitally.

Be sure that your digital wallet is stored in some place where a computer crash won’t delete it forever and you know the pass phrase or code to reinstall it after a crash

And if you’re changing over to a new device, you should know the codes to reinstall it 

Bitcoin is in the news, about a guy throwing out his old computer for recycling without realizing his bitcoin wallet is on the hard drive. His wallet has the only access to hundreds of thousands of dollars worth of bitcoin. And it’s gone. 

 

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There is also news of criminal elements using bitcoin to pay for illegal transactions across international borders. There have been some drug trafficking crimes that were uncovered where bitcoin was used to pay for drugs. 

Or you read the predictions about bitcoin that was worth 39 cents in 2010 and $500 in 2016 skyrocketing to $100,000 by the end of 2018. 60,000 USD in January 2021 and 35,000 USD in May 2021. It’s a volatile ride for Bitcoin.

If you don’t have the stomach to see that your bitcoin may go up and down in value and do wild swings in prices, then stay clear from it.

Every bitcoin transaction is a matter of public record. When you buy or sell bitcoin, there is a transaction recorded in the bitcoin blockchain. 

Your identity is not part of that record so that part is anonymous. The actual transaction is anonymous, but it is not private. There is a public ledger–the blockchain–that is open to the entire world.

Anyone who wants to explore it can go through every transaction from day one to the last few minutes.  

The FBI has clarified that they have the technology to follow the bitcoin trail. And other law enforcement entities. Bitcoin is not the secret that criminals like drug dealers might think it is. 

Government agencies can follow the trail but opening a bitcoin wallet is another matter. Only the owner of the digital wallet can access it unless it has a weak password that can easily be hacked

 

How to Buy Bitcoin

 

Until more people use bitcoin, most of us have to go through an exchange to buy bitcoin.

The latest price of bitcoin as of November 2017 is $7,699.94 USD, as of June 2021 Bitcoin drops to 35,000 USD from 60,000 USD. And this volatility puts many people off.

 

 

The price may vary, depending on where you buy it. Some exchanges may increase their price so they can make a tiny profit on each sale. 

 

What throws people off is that they think they have to buy one bitcoin, and that is a lot of money.

If you are new to the idea of digital currency and afraid of losing your money. You do not have to buy a full bitcoin.  

Here is an example.

An online exchange is selling one bitcoin for $38,738.48 USD (the same day as the price is set at $37,699.94). You can buy $20 USD worth of bitcoin which works out to be 0.00228873 bitcoin.

For twenty bucks, or if you only had 500 pesos, you can buy a fraction of a bitcoin.

If the price doubled in the next months as some predictors suggest, your fraction would be worth twice what you paid for it.  

 

 

 

The first step in buying bitcoins is getting a wallet. This is what the software that contains your bitcoins is called–a wallet. It is this wallet that allows you to join the bitcoin world. 

Think of it as getting a bank account. You need it to take part in the bitcoin world. You need to have some place where you can access your bitcoin.  

Once you have your bitcoin wallet, you are ready to receive bitcoins. 

Today you can easily buy bitcoin and have a digital wallet at the same time by registering in Binance. With Binance, you can pay using GCash or a bank deposit from a Philippine Bank Account.

Binance also accepts many forms of payments via credit or debit cards

When you buy bitcoin on an exchange, there is usually a transaction fee charged by the exchange or some other method for the exchange to profit from the service provided. 

 

 

If you check Craigslist for bitcoin sales, you are to find stores where you can walk in and buy bitcoins for cash. You will find people selling items and accepting bitcoin for payment.  

You can sell your own stuff for bitcoin payment or provide services and accept bitcoin currency.

Another way that people get bitcoin is to accept it as payment for your business.

In Craigslist as mentioned above, people were selling items for bitcoins. One person was selling a car for $15,000.

 

Can You Get Free Bitcoins? 

 

If you search online for free bitcoins, they will entice you with magnificent offers to earn bitcoin by visiting websites or playing online games. Some will suggest that you mine bitcoin.

They will make you believe miners get great payouts. 

First, most of the places that recommend joining sites where you earn bitcoins for watching videos, visiting websites, and bitcoin mining pay in satoshis. 

What is a satoshi? It’s the smallest unit of bitcoin that gets to be recorded in the blockchain.

What is it worth? One hundred millionth of a bitcoin (0.00000001 BTC). 

 

 

What does this mean in terms of dollars? It converts to $0.0000824865 USD. This is on a day when a bitcoin is worth about $8,300. It’s a fraction of a cent. If you had a thousand satoshi, you would have 8 cents. 

 

Be careful before you enter the world with enticing offers to earn bitcoin. If it seems too good to be true, then it’s likely to be a scam. 

 

About mining bitcoin. Once upon a time, it was a reasonable way to earn bitcoin, but it has become more challenging and you will compete with mining farms.

One of the largest mining farms is in Sichuan, China. It has three mining data centers, and each center operates 2,500 mining machines. Hard to compete with that! 

 

 

You can join cloud mining. All you need is your home computer and you can join a large mining center. But I recommend doing your research first

There have been complaints about slow payment and other hassles from cloud mining companies. Often you have to deposit money with the company to become involved. 

It might be better to implement some other method of finding money and converting it into bitcoin. It can be as basic as saving money instead of buying things you don’t really need 

Instead of buying coffee for a week while at work. Save the money and buy bitcoin. It can also apply not just to coffee but to any other things that are not really important to you and you can live without.

 

 

Rather than earn satoshis or joining a mining cloud, or mining Bitcoin yourself. Consider buying a fraction of a bitcoin if you have extra money.

You do not need to time when to buy, just buy bitcoin when you have the extra cash and if you’re consistent, you will see your bitcoin holdings rise

 

Conclusion

 

There is always an element of society that seeks to find loopholes to destroy something good. If you want to try bitcoin, but fear that it will suddenly become worthless, here is a good idea …. Buy some, let it grow, then cash out the initial amount you invested. 

If the rest of it continues to grow, that is great. If there is a bubble and it bursts, you are not out of pocket because you took back your initial investment. 

Like all other investments, there is NO guarantee. Only invest what you can afford at huwag mag all in. You also need to do your own research and take your own risk.

In the end, it’s your money, and it’s your responsibility

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