As of this time, bitcoin is hovering over 17,500$ and the price is much more likely to change in the coming day due to volatility in prices. That’s the first thing you should know about bitcoin in my opinion. Of course, by no means does that make it a less worthy investment. After all, bitcoin was created with the future in mind and as a hedge to inflation. As shaky as that sounds, bitcoin is a solid investment to protect your assets and time in the long term (more on the fundamentals in a future post perhaps).
You may be asking at this point, what backs bitcoin? Simply put, time & energy. The power of bitcoin lies in it’s set capacity of 21 million bitcoins, and production rate which is halved approximately every 4 years. There are currently 18.5 million bitcoin that have been mined, with 2 and a half or less million to be mined. Common day currency or fiat has no limits for how much can be printed, federal banks have the power to steal your time by just running the money printer! We all know the feeling of that in Lebanon by now.
Safety, safety, safety. There we go, I said it three times. The importance of safety should not be neglected or shrugged off, after all bitcoin is a store of funds. Funds you want to tightly secure!
Bitcoin and cryptocurrencies alike are stored on wallets. Yes you heard that right, wallets! Wallets allow you to receive and send funds, using a uniquely generated address specific to your wallet. For now, we’ll cover the most commonly used wallets and most secure I personally recommend. Hot wallets are apps on your phone or device which store the funds within there, these are probably the most commonly used and free. Hardware wallets on the other hand are much more secure and an advised investment should you decide to store a large sum! Hardware wallets will run you around 70–100$ for one in Lebanon or cheaper should you buy it from abroad.
For starters we recommend an app called “Bluewallet” an open source wallet, you can get started for free from the App store on your relative device. Some of it’s pros are it’s customization of sending fees and it’s fairly non-buggy interface, hasn’t failed me to this day! We don’t only advocate this wallet, but we recommend any open source wallet.
Private keys? Say what?
Woah! Before you get started you should do your own research on what wallets there are and which one is most suitable for your use case. Now that’s out of the way, you want to know more about private keys. Private keys are typically a combination of 24 words, which compromise your recovery phrase. This is displayed at the creation of any wallet you create. Typically with having written down your private keys somewhere, you are secure in the long term should you lose your phone or lose the app somehow.
Kindly note: We do not recommend you keep your private keys on your phone! Neither in your notes or as a screenshot on your devices. Should those find their way to the wrong prying eyes you’re at risk of losing your funds.
More on private keys here.
Further on recommendations, it is strongly advised against keeping your funds for long term on any crypto exchange, as you don’t have access to any private keys. There’s a thing we say “Not your keys, not your bitcoin”.
A Courteous disclaimer:
We get a lot of people wanting to dive into bitcoin with no foundation whatsoever. We strongly advise against that. You should have a basic understanding of what bitcoin actually is before adopting it as a means of protecting your capital.
Here I am finishing up the post and the price of one bitcoin is fluctuating around 18,000$. Just taking this moment to remind you of the price fluctuation and a general recommendation that it is indeed never too late to purchase some bitcoin, although timing may be questionable. Any how, this post is only meant to introduce you to the basics of bitcoin and how it applies to Lebanon.
I truly think cryptocurrencies are a glimpse of the future, protect your wealth today and start using bitcoin.
For any educational questions join the telegram group:
Link to join Bitcoin du Liban. https://t.me/BdLiban
Check out the author’s website as well which is primarily focused on educating you about bitcoin. https://bitcoinduliban.org/
Common questions asked in Bitcoin du Liban (telegram group):
Can it save my Lollars/depreciating Lebanese Lira?
Unfortunately not at this stage.
How do I buy bitcoin in Lebanon? Can I use my credit card?
Credit cards as you may know by now are non-functional, but even when they worked Lebanese banks have barred you from buying crypto from exchanges or the like.
In Lebanon it’s a p2p market (Peer-to-peer). After agreeing on a price, you meet with people in person and do the trade on the spot.
-There’s also a group for this!
What wallet do you recommend?
Check under security, Bluewallet is a common recommendation.
The price was 10,000$ one month, now it’s 18,000$! Should I buy now before it’s too late?
In the world of bitcoin it’s never too late. Personally, I wouldn’t buy at high levels but you can never know how high bitcoin is set to go up to one day.
Do I have to buy one bitcoin? What’s the minimum?
To tackle that you have to understand that One bitcoin is essentially divisible by 100,000,000 units. Yes, 100 million. Those units are called satoshis.
You can typically buy any amount of bitcoin, usually starting 5$ & upwards.