There is a new kind of gold for the new millennium. Are you ready to mine it?
You do not have to go to the mountains, search the rivers or dig miles underground for this new gold. All you need is a computer and a high speed internet.
The new gold is called bitcoin.
What is bitcoin?
Bitcoin is a crypto currency. In other words, it’s digital money.
Much like pets, farming, cities and what not have their digital versions in games, bitcoin is the digital version of money. Only, it is real.
However, it is not the money that we have now. Bitcoin does not have a currency like dollar or peso while it is in the digital space. It does not follow any bank rules nor is it regulated by such agencies. It was ideally made to make money free from such controls of banks and governments.
How does bitcoin work?
Bitcoin is a “peer-to-peer technology,” it is “open-source, its design is public, nobody owns or controls it.”
Like most peer-to-peer technology, sharing and distributing happens online in a computer. No central bank creates a bitcoin, instead bitcoin creation is “mathematically limited” to only 21 million bitcoins.
Another fun fact, it cannot be inflated at will, it cannot be counterfeited nor can it be blocked or frozen – unless all of the world’s internet stopped working.
How was the first Bitcoin created?
Bitcoin was first created in 2007 by someone named Satoshi Nakamoto who was said to be in Japan. Nobody knows who Nakamoto is and some speculate that Nakamoto is not a single person but a group of people.
The first transaction was made in January 2009 and by October of the same year, an exchange rate for bitcoin was established. However, the first real-world transaction happened May 2010 for a pizza in Florida.
There were of course several hurdles and issues that came up, but the bitcoin economy is healthy. A bitcoin is currently worth P29,000 as of writing.
Is it legit?
If by legit means can you use it in the real world sense? Then, yes. There are several businesses accepting Bitcoins for payment. In fact, if you use Purse.io to buy at Amazon with Bitcoins, you automatically get discounts up to 20%. Foldapp.com also gives 20% off on Starbucks products if purchased with bitcoins.
In the Philippines, you can shop online, remit money and even invest or save with bitcoins. Merchants in the Philippines accepting bitcoin are: Avon cosmetics, Import Valley, CashCashPinoy, CheapAir, Expedia, Metrodeal, Bitcoin Store, Bitlasers, Chollo Media, FlexSolarCells, Frontier Vapor, Stegen Electronics, BeefJerky Philippines, Bees Brothers and many more. You can even pay your utility bills with it.
Bitcoin is accepted internationally as well, however, it may not be legit to use it in some countries. Due to the fact that it cannot be regulated by traditional means like most currencies, some countries ban bitcoin transactions.
What are other advantages of using Bitcoin?
As a Filipino, you may really want to consider using bitcoins for its convenience and lower fees.
Bitcoins do not need banks. If you have someone sending money to you, you can easily receive it through a bank, cash card, mobile and other cash pick up locations. You do not have to open a bank account.
This is also a good thing for Filipinos abroad who regularly sends remittance allowance to their families. Sending bitcoin is better because of its lower processing fees and faster transaction.
How can I get bitcoin and earn from it?
Like previously mentioned, bitcoins are mined. It is generated by a computer network and your computer can mine some for you.
However, mining needs a really good computer, a fast internet connection and would require your computer to be on 24/7.
Do not worry, there are several other ways for Filipinos to earn bitcoins. Here are some ways:
Work for it. Get yourself a bitcoin wallet and let people pay for your product and services with bitcoin. Make sure to display your QR-code and Bitcoin address so you can receive the payment.
Employed? You may also try asking your employer if they can pay you in bitcoins. Although there are very little businesses (to almost none) that offer this, your boss might just be a bitcoin enthusiasts as well.
Complete online tasks. There are some websites that will give a small amount of bitcoins for visiting their websites and doing some tasks for them like bitfortip that lets you earn bitcoins by answering questions from a forum.
Play a game. There are several websites and apps that offer free bitcoins by playing a game. You won’t be able to get a lot of bitcoins from playing but it can get you some that you can use to invest and make them grow, if you know how to.
Read classics. Yes, you read it right. Get paid by reading classic books.
Earn through interest
If you already have some bitcoin, consider lending it with interest. Be careful though, lending is not a business for people who are shy to collect debts and take interest.
Earn by trading
Do you have experience in stock trading or Forex trading? Consider trading bitcoins as well. Like any trading event, this is not for the faint of heart. You may also want to familiarize yourself with the Bitcoin Stack Exchange and learn about differences in price between exchanges.
Bitcoin in the Philippines
It is allowed in the Philippines.
Bitcoin startups are hopeful of the bitcoin economy in the Philippines as it is the third largest country to receive remittances from abroad. Aside from tapping tech-savvy Filipinos to try the cryptocurrency, most bitcoin companies are looking in to tap those unbanked in the Philippines. The participation of several merchants in the Philippines can also help in the promotion of its wider use.
However, the country may tighten its regulations for cryptocurrencies in light of the cyberattack and money laundering issues the Philippines faced recently.
Bitcoin is new and there’s not a lot of people believes and understands it. Still, several news agencies believe it to be the new safe-haven as they compare it to gold.
Although, there are still issues revolving it, like its association with the black market due to the anonymity it provides, it may not be long before we say good bye to our old currency or bitcoin may disappear in the future for a different digital money.
Right now though, bitcoin offers Filipinos a new way to send and receive remittance, pay for services and buy goods online – even without a bank account.