Dec 07, · So last Thursday, while waiting for a flight to Nashville, I pulled up a popular application called Coinbase that can be used to buy and sell bitcoin. The virtual currency had hit $10, for the. Apr 02, · It is a fact that buying bitcoin is fast becoming the only way for common people to access it. Mining is quickly getting too expensive. However, the main reason it . Sep 09, · the truth seems to be that the trouble occurs when individuals start trying to exchange fiat for bitcoin. if there is a way you can think of to remove fiat from your method of acquiring bitcoin, it will make the process less invasive. So the easiest way to buy bitcoin is simply not to buy it?
Why is bitcoin so hard to buyI bought $ in bitcoin. Here's what I learned
Even more enticing, is the possibility of bitcoin becoming a mainstream currency. With increased use and wider acceptance, bitcoin access should be getting easier by the day. It is also unregulated, meaning anybody can acquire and use Bitcoin. So, one would be forgiven if they thought that buying bitcoin is the easiest experience in all of the cryptocurrency.
For most of us, it could be faster and easier. But why is it still hard to buy bitcoin is the U. I have already indicated that many of us find buying bitcoin a pretty straightforward thing around the world. All you need is to open an account, fund it and off you are with BTC in your wallet.
On other occasions, you connect with a seller via a peer-to-peer bitcoin site before proceeding to complete the purchase. That sounds easy.
However, for some reason or the other, buying bitcoin can be a nightmare for some people. And it all relates to getting an account to facilitate that first buy.
Exchanges operate under stringent KYC regulations. Therefore, buying platforms are pushed into enforcing stringent ID verification which in turn makes it hard for beginners to buy bitcoin. It becomes a problem when it takes up to 5 days for your account to be verified. Much of the difficulties arise from the regulatory challenges the Bitcoin exchanges face.
For instance, very few U. S states allow bitcoin exchanges to operate within their jurisdictions without proper licensing.
This has resulted in there being fewer U. S based exchanges. It then leads to most people seeking to buy bitcoin from foreign-based companies. Most of the foreign-based exchanges do not accept credit card or PayPal.
They prefer bank wire or cash deposits. The other reason you may find it difficult to buy bitcoin relates to lack of supported payment methods. The easiest way to buy bitcoin is via cash. However, getting someone to buy from is not an easy thing.
So, many buyers prefer to use bank transfers, credit cards or PayPal. You cannot buy bitcoin directly with fiat on exchanges. If you decide to use LocalBitcoins, for example, issues of mistrust make it harder to approach strangers to complete the transaction.
Banks are unsupportive of Bitcoin. Several U. S banks have suspended use of its services related to bitcoin transactions. Even where it works, bank transfers make it difficult to buy bitcoin when they end up taking long periods to process the deposit. IO, for example , says that bank transfers can take up to 14 business days to be reflected in their system. If you wanted to buy at a certain price, you may end up missing the chance due to the unpredictable nature of Bitcoin prices.
The use of a credit card has so far been the most common method of buying Bitcoin and altcoins. PayPal is the toughest buying method due to the inherent risk of chargebacks or fraud. There is no direct way to buy bitcoin with PayPal. This makes it hard for someone with a PayPal account to purchase bitcoin.
Others, like Dimon, have said it's even " worse " than the Dutch tulip mania from the s, considered one of the most famous bubbles ever. As Buffett put it back in , "the idea that [bitcoin] has some huge intrinsic value is just a joke in my view. There's also no interest or dividends. Bitcoin serves as a new kind of currency for the digital era. It works across international borders and doesn't need to be backed by banks or governments. Or at least that was the promise when it was created in The surge and volatility of bitcoin this year may be great for those who invested early, but it undermines bitcoin's viability as a currency.
Related: Bitcoin boom may be a disaster for the environment. Then again, if bitcoin crashes, at least I'll always have the socks. Rather than a currency, bitcoin is being treated more like an asset, with the hope of reaping great returns in the future. So is there anything truly valuable about bitcoin? Bitcoin is built on the blockchain , a public ledger containing all the transaction data from anyone who uses bitcoin.
Transactions are added to "blocks" or the links of code that make up the chain, and each transaction must be recorded on a block. Even bitcoin critics like Dimon have said they support the use of blockchain technology for tracking payments. Is there a legal and legitimate way to invest in bitcoin? Bitcoin exchanges have a checkered history.
Gox, once the largest exchange, shut down in after losing hundreds of millions of dollars worth of bitcoin after a hack. Square SQ , the payments service, is also rolling out a bitcoin product. There are also bitcoin ATMs in scattered bodegas and convenience stores around the country, through companies like Coinsource.
The ATMs let you exchange bitcoin for cash, or vice versa by scanning a QR code from the digital wallet application on your phone. Related: Millions of dollars stolen in bitcoin hack. With Coinbase, you must first give the app permission to connect to your bank account. As with other stock trading applications, you pay a small fee for each transaction, buying and selling. But the transaction can take significantly longer. The price I bought it at remains the same, but I won't be able to sell at the earliest until Friday.
Where's the skepticism as bitcoin keeps soaring? Inside a Russian cryptocurrency farm. CNNMoney Sponsors.